Why You Should Run Free Shipping Promotions
If you’re looking for a way to drive up sales and increase conversions on your online store, you should be running a free shipping promotion. Why? Shipping costs can often cause the customer to pause. They go as far as the checkout process and then see the total. They think yikes. It costs this much to ship it? Do I really even want or need it in the first place? And there it is –– an abandoned cart; a lost sale.
In fact, high shipping costs are a primary reason that customers bounce off your site. Offering a free shipping code is a great tool to mitigate this barrier to purchase and increase conversions.
Here’s a fascinating stat. According to Wharton marketing professor David Bell, people find a free shipping offer that saves them $6.99 more appealing than a product discount of $10. How wild is that? Despite the simple fact that the $10 off saves them more money, they feel it’s a better deal to get the free shipping. Now that you know the psychology of free shipping, it’s time to leverage it in your online business.
How to Protect Your Margins
When you’re running a promotion of any kind, you need to be mindful of what success looks like. Since you’ll be absorbing the cost of shipping, you need to protect your profit. The best way to do that while driving up your average order value (AOV) is by linking your free shipping promotion with a minimum purchase requirement. Common thresholds include $25, $50, and $100.
You can easily set up free shipping minimums in Shopify in the shipping settings. While you’re in the backend, you can even combine free shipping with other promotions, such as a percentage off for email subscribers or in conjunction with your holiday promotions. Conversely, you can also prevent customers from combining promotions in Shopify.
There are a few ways to set up free shipping promotions in Shopify. Both have advantages, depending on your business goals. Let’s dive in.
Free Shipping Automatic Discount
An automatic free shipping discount applies to every eligible cart. Take note that this doesn’t mean every cart since you can still set restrictions on when or how this type of free shipping promo is used.
The advantages? It can help encourage orders and speed up the checkout process. All of this results in more conversions and revenue for you. It also prevents the customer from having to remember what your code was or to click back to find out. It just appears in their cart like magic.
While it may seem like magic to the customer, you should be sure to remind them that they’re getting this great free shipping discount. You want to be sure they feel the value they’re getting. The best way to do that is to include a banner announcing the free shipping promotion. You do not want customers assuming that you always waive shipping or taking the saving for granted. Additionally, the free shipping banner complete with code and end date creates a sense of urgency to purchase quickly before the deal expires.
Free Shipping Discount Code
Another way to set up your Shopify free shipping campaign is with a discount code. Say you’re running a code for free shipping on your first order –– you’d simply set that up in Shopify and be sure to announce it on your website banner. Choose the code you’d like to use, for instance, FIRSTSHIPSFREE, set it up in the backend, and get ready to promote it on your website.
Create a Customized Announcement Banner
Now that you’ve set up your free shipping promotion in Shopify, it’s time to promote that discount on your website. Luckily, you don’t have to worry about hiring a designer or writing code; you simply have to download the free and easy-to-use Shopify app from Newclick.
Our user-friendly newclick.io app allows you to create and schedule promotional announcements on your Shopify store easily. You’ll schedule a start and end date for your free shipping promotion banner that aligns with the dates you’re running the promotion itself.
Then, with only a few clicks, you’re able to customize your banners with our editor. You can change anything from the background and text color to adding emojis, links, and more. The result is a banner that seamlessly integrates into your website, matches your brand identity, and helps drive sales.
As with any discount or offer, you should choose a goal for the free shipping campaign. Start small and measure the results.
- Did your free shipping discount convert more visitors? What was the average order value?
- How did your margins look after absorbing shipping costs?
- How are you promoting your discounts?
- How do you create design elements for your campaigns? How much time and money are spent creating them?
Asking these types of questions will allow you best to develop a marketing strategy for any future campaigns. If you’re ready to start creating more promotions that are easier to run, look sharp, and convert site visitors, it’s time to set up your free account with newclick.io.Set Up Free Account