Free Ship = Good Tip

It’s the wonder offer that works wonders for your sales

Editor’s Note: This is another in a series of posts we’re calling “The Best of the YSM Blog.” These are posts containing timeless advice and best practices that never go out of style. Even if you read it the first time, it’s not a bad idea to review this information periodically to help get maximum performance from your advertising.

Originally posted February 13, 2009

When I was a kid, my grandfather always used to say, “there’s no such thing as a free lunch.” He’s still right, but today the word “free” doesn’t raise as much of red flag as it did in Gramps’ day. In fact, more and more consumers are recognizing the value of free, especially when it comes to their online purchases and how they’re shipped. Because when it comes to shipping, “free” can be the key that unlocks the door between advertisers and customers.

Determining factor
According to a new study of 9,000 shoppers conducted by ForeSee Results, free shipping had a huge effect on holiday sales in 2008. The study showed that free shipping offers play a major role in whether consumers buy in a store or online, and, when purchasing online, where they shop. Avoiding shipping costs was the third most common response for why shoppers choose to buy in a store rather than on a retail website, behind the ability to receive the product immediately and being able to see or feel an item before purchase.

Additionally, consumers gave retailers offering free shipping higher scores than those not offering it—in every satisfaction category. These categories included likelihood to purchase online, brand commitment, likelihood to return, likelihood to recommend, and overall retailer satisfaction.

How to promote free shipping
All of this adds up to one inescapable conclusion: Free shipping can work wonders. So if you offer this option, be sure to scream it out in all of your ads, because your customers will want to know about and take advantage of it.

This is also true for all of the other special deals you offer, from coupons to discounts to free gift wrapping. If you offer it, let your customers know about it! Free shipping and other special deals are the best first impression you could possibly make on potential customers, as well as a great way of ensuring loyalty in the ones you already have.

One note though: If you offer free shipping but with restrictions—such as minimum order amounts or only on certain items—be sure to make that clear, too. The ForeSee study showed that consumers don’t like surprises when it comes to free shipping, but they’re far more lenient if the rules are explained up front.

In this time of tightening belts and careful finance monitoring, consumers are more careful than ever about where their dollars are going. Free shipping is a great way to ease consumer concerns and grow customer loyalty at the same time.

— Noah Belson, Content Quality Analyst