How to set up free shipping correctly and attract more customers?

Free shipping is one of the most effective moves that can help online stores attract more customers and increase order volume. Not only can discount shipping motivate purchases, it also improves user experience and reduces cart abandonment. However, setting up free shipping requires a strategic approach so that it does not become a financial disadvantage for the online store. So how do you set up free shipping correctly and effectively?

1. Evaluating shipping costs

The very first and crucial step is to find out how much shipping actually costs you. Take into account not only direct costs, such as shipping company fees, but also indirect costs, such as the packaging of the goods or the staff that prepares the order. This will help you determine the financial threshold below which free shipping would be too costly for an online store.

2. Setting the minimum order value

One of the most effective methods to offer free shipping while encouraging customers to make larger purchases is to set a minimum order value. You can set a "Free shipping on purchases over £1500" condition. This will ensure that offering free shipping is not a money-loser for you, while also encouraging customers to add more products to their cart to qualify for free shipping.

How to do it:

1. First, calculate the average value of orders on your online store.
2. Then find out at what amount of purchase is free shipping still profitable in terms of margins and costs.
3. Set this amount as the lowest threshold for free shipping, and optimally it should be slightly higher than the average order.

3. Split by country

Free shipping may not be universal for all countries or regions. If you sell both in the Czech Republic and abroad, shipping abroad may be significantly more expensive for you. So think about setting different boundaries for free shipping by country or region.

4. Time limitations of the event

Offering free shipping can also work great as part of limited-time promotions, such as during discount campaigns, seasonal sales or holidays. This strategy makes customers feel like they have to act quickly, which motivates them to make an immediate decision and purchase. For example, you can offer free shipping for a few days, a weekend, or during special events such as Black Friday.

5. Newsletter sign-up

Another way to engage customers while building a long-term relationship is to offer free shipping in exchange for signing up for your newsletter. This method offers the dual benefit of not only getting in touch with the customer for future marketing offers, but also encouraging them to make their first purchase.

6. Loyalty program

As part of a loyalty programme, you can offer free shipping as an exclusive benefit to your regular customers. This will reward their loyalty and strengthen the long-term relationship. For example, members of your VIP loyalty program may be eligible for free shipping on every order, while other customers only get it when they reach a minimum purchase value or during a special event.

7. Transparency of conditions

The successful implementation of free transport depends on clear and transparent communication of the conditions. Customers need to have a clear idea of the circumstances under which they can get free shipping and what happens if they do not meet the requirements. This information should be easy to follow and clearly displayed both in the shopping cart and on the shipping details page.

Conclusion

Free shipping can be a very effective way to attract new customers and increase sales, but getting it right is key. You need to carefully analyze your costs and choose a strategy that not only motivates more purchases, but also doesn't compromise your margin. There are many different methods to take advantage of free shipping, and they all have a common goal - to strengthen customer loyalty and improve the overall shopping experience.