What are the benefits of offering free or low-cost shipping and returns for your online store?

1 Increase conversion rates

Customers are more likely to buy from your online store if they don't have to pay extra for shipping and returns. According to a survey by Econsultancy, 74% of consumers said that free shipping was the most important factor when choosing an online retailer. Free or low-cost shipping and returns can also reduce cart abandonment, which is when customers add items to their cart but leave without completing the purchase. By eliminating or lowering the shipping and return costs, you can motivate customers to finalize their orders and increase your conversion rates.

2 Improve customer satisfaction

Customers are more likely to be satisfied with your online store if they have a positive and hassle-free shopping experience. Free or low-cost shipping and returns can enhance your customer service and reputation, as customers will appreciate your flexibility and generosity. They will also feel more confident and comfortable buying from your online store, knowing that they can easily return or exchange the products if they are not satisfied. By improving your customer satisfaction, you can increase your retention and loyalty rates, as well as generate positive word-of-mouth and referrals.

3 Gain a competitive edge

Offering free or low-cost shipping and returns can help you stand out from your competitors and attract more customers. Many online shoppers compare prices and shipping costs across different websites before making a purchase. By offering free or low-cost shipping and returns, you can give your online store a competitive edge and convince customers to choose you over other options. You can also use free or low-cost shipping and returns as a marketing tool to promote your online store and create a unique selling proposition.

4 Reduce return rates and costs

Offering free or low-cost shipping and returns can also help you reduce your return rates and costs. Customers are less likely to return products if they have to pay for the shipping and return fees, as they may not find it worth the effort and expense. However, this does not mean that they are happy with the products or your online store. They may simply keep the products and never buy from you again, or worse, leave negative reviews and feedback. By offering free or low-cost shipping and returns, you can encourage customers to return the products they are not satisfied with, instead of keeping them and becoming dissatisfied. This way, you can improve your customer service, reduce your inventory costs, and avoid negative publicity.

5 Increase average order value

Offering free or low-cost shipping and returns can also help you increase your average order value, which is the amount of money customers spend on each purchase. You can do this by setting a minimum order value or threshold for free or low-cost shipping and returns, such as $50 or $100. This can motivate customers to buy more products or add more items to their cart to qualify for the free or low-cost shipping and returns. You can also offer free or low-cost shipping and returns as a reward or incentive for customers who spend a certain amount or join a loyalty program. By increasing your average order value, you can boost your revenue and profitability.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?