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When it comes to your online store, there are many factors to take into consideration when you want to increase your sales. Undoubtedly, the actual value of what you are offering is the most important aspect of your business. However, just because you have a great product doesn’t mean it will sell like hotcakes.

Other factors such as the design of your website, a competitive market cost, and customer service are also vitally important. But when it comes to online sales, how you offer shipping can be either a source of costs, or a driver of profit for your business.

One of the most important sources of sales for your store is free shipping, so here are three ways free shipping can help you grow.

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1. Free Shipping Will Increase the Volume of Your Sales

Today, convenience is king. If you are not making the shopping experience easier for the consumer, then there are few reasons why someone should come to your online store. According to Compete.com’s Online Shopper Intelligence Survey, 93% of the people surveyed said that free shipping is the biggest source of encouragement to buy online.

When you offer free shipping, you are cutting out the alternative costs that are attached to the shopping experience. For example, if I am shopping at a brick-and-mortar business, then I will have to pay for gas to get to the actual store. When I shop online with free shipping, then I save on the cost of gas, which can save me some big bucks over time.

Moreover, shipping costs are the most common reason for abandoned carts. Whether you are shipping domestically or internationally, it is the idea of unexpected costs that will deter even the most loyal customer away from future purchases.

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2. Free Shipping Increases Order Value

Unless your products are rare or truly unique, free shipping will instantly increase your order value. Because of the nature of incentives, consumer psychology says we are more likely to take action and buy when promotions are offered. This is evident by the fact that shoppers spend 30% more when free shipping is available. We want to know that we are receiving the most value for our hard-earned money.

When we are offered free shipping or a promotion, we feel as though we are being treated in a special way. This shift in the consumer’s perspective stirs up positive emotions towards the merchant, and will thus be more likely to spend more as a positive relationship has now been established.

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3. Free Shipping Makes Your Company More Competitive in a Global Marketplace

As internet usage and online shopping continues to grow each year, new markets and industries are beginning to emerge and grow even faster than ecommerce in the US. According to eMarketer.com, in 2013 online sales in China and Indonesia grew by close to 70%. Furthermore, by 2016 the Asia-Pacific region will exceed North America in online sales by 2014.

Free shipping will be one of the most effective way to get into and stay competitive in international marketplaces.

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Shipwire provides eCommerce fulfillment services, shipping software, and cloud-based logistics from warehouses around the world for companies of all sizes. Shipwire's industry-leading enterprise logistics platform helps you grow sales, expand into new markets, and delight your customers by eliminating the hassles of shipping and storage.





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