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Why offer free shipping? How to turn a profit from this popular perk
Definition: Free shipping is an increasingly-popular option for online shopping, where customers do not have to pay an additional shipping charge.
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Is free shipping really worth it?
Offering free shipping usually means that the shipping costs are being taken from the profit margin on an item; and unless free shipping is increasing a company’s volume of sales, it will likely be taking away from the bottom line. On the flip side, we do know that free shipping is an incentive for customers to complete a purchase:
What online stores offer free shipping?
Stores Offering Free Expedited Shipping
- Billabong. Customers can get free second day shipping on order over $65 at Billabong.
- Brooklinen. Enjoy 15% off sitewide, plus free rush shipping, at Brooklinen.
- Neiman Marcus. Now through Dec. ...
- Patagonia. Patagonia currently offers free expedited shipping for orders over $99.
- Riley. ...
- Rose Inc. ...
- Sephora. ...
- Tory Burch. ...
Is it worth offering free shipping?
In fact, some customers will only deal with merchants who offer this benefit. However, this may not be a viable option for every merchant. But the long term gains may be worth consideration. That is, offering customers free shipping leads to repeat business, thus increasing the overall lifetime value of these customers.
Why should I offer free shipping?
The first benefit to offering free shipping is to either differentiate yourself from your competitors or to keep up with them. On its face, that sounds like two dissimilar things but both have the same goal: driving sales your way.