Revamp Your Shipping Strategy: How Shipping Discounts Can Increase Average Order Value And Loyalty

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The rising cost of essential commodities and discretionary goods are turning consumers into savvier online shoppers as they aim to save money whenever they can. Aside from using vouchers and waiting for flash sales, buyers are also on the lookout for free shipping or discounted shipping rates. In fact, a recent survey has revealed that for most consumers, shipping cost was 2.85 times more important than shipping speed. 

Since shipping fees are a major consideration in purchase decisions, retailers should rethink their pricing strategies to create a positive customer experience without affecting their profit margins. With the right shipping perks and promos, businesses can increase e-commerce sales and encourage buyers to make repeat purchases. Here’s how shipping discounts can increase average order value and enhance brand loyalty.

Encourages Increased Spending

There’s an overwhelming preference for free shipping across all online shopping sites as it reduces perceived cost when making buying decisions. Research has shown that 82 percent of shoppers are more likely to complete a purchase if shipping is free. What’s more, many buyers are willing to purchase more products to get free shipping perks. Most retailers offer free shipping once a customer reaches a certain order threshold, and 47 percent of online shoppers will spend up to a minimum amount to qualify for free shipping. 

To offer free shipping profitably, consider adding the shipping cost into the price of your products, but see to it that you stay within your industry’s pricing range. You may also want to set a minimum order value to qualify for free shipping so that your customers will be encouraged to buy more items. Improving your packaging also allows you to offer free shipping without losing money. According to experts at Ryder e-commerce fulfillment services, reducing the size and weight of your packages can help to lower shipping cost. Use the smallest possible boxes for small items to prevent unnecessary weight charges, or work with your 3PL to design customized boxes for uniquely-shaped items. Custom packaging eliminates the space between the item and the box so you won’t have to use fillers like packing peanuts, which can add more weight to the package. 

Boosts Customer Satisfaction

Charging high shipping fees can leave a bad impression on buyers as they view it as a separate item from the products that they’re buying. Exorbitant shipping fees are thought to be unfair since they’re deemed to be an extra source of profit for the business, and this often leads to buyers abandoning their shopping carts as they search for retailers with lower fees. Since many consumers expect free or affordable shipping fees, failure to meet these expectations can result in poor customer satisfaction and make buyers less likely to trust or support your brand. 

For shoppers, the check out process is the final part of the online buying experience, so businesses should take this as an opportunity to make a good impression to increase customer satisfaction and loyalty. Offering free or discounted shipping costs can create a good shopping experience, and it gives buyers a positive perception of your company. They’re also more likely to recommend your business to friends or family members, and make repeat purchases down the line. To strengthen customer relationships, personalize the checkout experience by giving special shipping discounts to first-time buyers. Repeat customers can get higher discounts, while high-value shoppers can get free shipping perks.  

Revamp your shipping strategy to build customer trust and loyalty. By offering shipping discounts or free shipping you can encourage people to buy more, and create a positive shopping experience for your customers.