The success of an e-commerce depends to a large extent on the number of conversions it has- A common area in which we find a drop in sales is the checkout point, in which they find out that the shipping amounts are very high or that they should pay them out of your pocket.
When these rates are too high compared to the physical store, the shopping cart is abandoned. So, if a business wants to have more numbers in terms of sales, they need a plan to make the abandonment of the sales cart decrease.
When doing a thorough check on sales intentions, we will understand that the abandonment rate is clearly greater than 68%.
What is the effect of having high shipping rates on sales rates?
In the psychology of people .. When they pay less, they feel absolutely happy with the purchase they have just made. Anything “free” will make them feel happy about the entire purchase. That is the reason why “free shipping” is a viable option to win many consumers, compared to the option to pay for shipping. This is immediately reflected in the number of conversions and the number of sales in business.
Business owners should understand that this shipping strategy does not provide the expected dividends. Then, they must employ a plausible solution that is beneficial to the merchant and the buyer. Surveys have proven that shipping costs and handling charges are responsible for the constant abandonment of the shopping cart.
What are the benefits of free shipping?
There will be an immediate encouragement from customers not to abandon the transactions. Then, you will definitely have more conversions. It is usually at the end of the checkout when buyers find the shipping amount. Then, if they find that it is too high, they will abandon the shopping cart. Most online sales are made by the attribute that buyers do not have to leave their home and still have good options that come to the door of your home.
With free shipping, the size of the order will also increase. If there are no shipping charges, that will only motivate the buyer to buy more. Free shipping is considered a great bonus.
With the free shipping service, you can retain your consumers for a long period of time. For most buyers, free shipping is something extremely important that will take them to buy or not from a specific store. You will achieve that your consumers stop visiting the store of your competitors. So, if you want to be ahead of your competitors, it is essential that you include key offers with no shipping cost.
The business owner will see short-term results, as well as long-term ones. This will help boost sales immediately and retain consumers in the long term. Then, both objectives can be achieved with the same technique.
What are the cons of free shipping in your E-commernce?
Obviously, this will definitely be complicated for the profit margins you can achieve. Considering the way costs have escalated in recent times, this offer has proven to have escalated in recent times, and could prove to be extremely expensive for business owners. So, the only way to pay for it is to choose economic shipping methods for your e-commerce.
But, it will be a slow shipment, which could be the reason for the loss of consumers who are urged by the product. In any case, it is important to give clear information about the time it will take the product to reach the buyer. This information will help you decide if you want to make the purchase or not.
Most consumers think that free shipping is a birthday gift. Along with it, they also want a superior consumer service. As business owners, they must find the cheapest forms of shipping, that includes only slow shipments which cause more numbers of complaints that need to be answered by the customer service department.
Evaluate your shipping process
Obviously, you do not want to lose your consumers and at the same time, you are committed to your profit margins. It is definitely a double-edged knife. Free shipping might sound extremely good for buyers, but definitely bad for buyers when the business is small or medium. Then it is important to achieve the perfect balance and you have to evaluate your shipping process.