Shoppers when buying something not only concern the quality, the price of the products, also the shipping cost. Especially visiting an E-Commerce website, for example, a Magento one, customers can add products to cart just because of the notification “Free Shipping”. There is no doubt that Free Shipping stimulates Sales volumes.
For shop owners, the benefits, however, are much generated from the strategy?
If you are a Magento shop owner, “Free Shipping for all orders” helps you to boost up sales and get more orders. The option raises customers’ satisfaction. Nevertheless, bigger is not better. The disadvantages of Free Shipping for All orders defeat the advantages by the following reasons.
Add expense for retailers
The option provided for buyers “Free Shipping” directly shrinks your profits you can receive. Especially if your Magento Shop offers large-tonnage products, shipping cost is account for large part in your income.
Cause decrease the quality of other services
To keep up the profits gained, you surely need less serious requirement for other service standards, which can compensate for “Free Shipping” costs.
Stop buyers from coming into the shop
Free Shipping stops people from going to the shop in person. This can seriously result in lower traffic of surrounding customers coming into the shop directly. As the collectivism still exists in a huge number of people, a shop which does not have any people coming into finds it hard to attract surrounding customers.
The product prices can be higher
Not every visitor when coming into your site considers Free Shipping as a benefit. When seeing the line “Free Shipping”, they can immediately assume that the shipping cost is embedded in price of items they buy. The assumption leads them to leave your store if the product price is too high.
Take more effort and time
You need to make more transaction to maintain the profits gained, which requires you more time and effort to finish a larger amount of orders and shipping frequency.
Having A Clear Shipping Rate Strategy Is Better Than Always Free Shipping
The bad sides of Free Shipping are totally solved by the Variable rate shipping. The purpose of opening a shop for every owner is to gain profits by increasing income and reducing expense. A strategy of dividing multiple shipping rate for different types of product is essential by means of the reasons below:
- The standard price of products is lower
- More shoppers coming to the shop
- Ensure the maintenance of profits
- Guarantee the quality of other services
Multiple rate shipping charges your customers a different rate based on products they purchased. This method is commonly used and favored by retailers as it gives you more control on how much to charge based on your customers order.
If you sell many products with variable weight and dimensions or/and customers buy several at the same time, it is suggested that you choose a multiple shipping rate strategy.