Free shipping.
As sweet as the word ‘free’ sounds, it’s an obvious marketing strategy.
Today, even most customers know that it’s not really ‘free’.
Moreover, if you search for a free shipping strategy in eCommerce, the topic has been exhaustively researched by eCommerce experts.
In this article, we'll talk about:
3 Tips to Set Free Shipping Thresholds (aka Minimum Cart Value)
13 Interesting Shipping Strategies for Your eCommerce Store
Psychology of free shipping
Free shipping statistics in eCommerce
How free shipping impacts average order value
50 free shipping copy templates you can steal
3 Tips To Set Free Shipping Thresholds (Aka Minimum Cart Value) Free shipping thresholds are the minimum price limits at which eCommerce brands decide to offer free shipping. For customers, this term can also be known as the minimum cart value.
However, eCommerce business owners need to set the “right” free shipping threshold. Here are 3 tips to calculate your free shipping thresholds.
Tip #1. Study customer data Analyze the number of orders and the average order value over a time frame of 6-12 months to reveal conclusive patterns.
Tip #2. Don’t underestimate shipping limits Fix the issue of setting the free shipping threshold at a lower limit than is sustainable.
If your data reveals that customers are not increasing their average order value (AOV), then it’s an indication that they are getting free shipping anyway.
This means the incentive to buy more is absent.
Tip #3. Don’t overestimate shipping limits Fix the issue of setting the free shipping threshold too high.
This is a scenario where the average customer won’t find enough incentive to stretch and reach for free shipping.
Let’s say your free shipping threshold is at $160, and AOV is at $80, then most likely the average customer won’t want to double their purchase amount just to get free shipping.
13 Interesting Shipping Strategies for Your eCommerce Store 1. Threshold-based free shipping Threshold-based free shipping is a common strategy to offer free shipping to customers who meet a certain minimum purchase requirement.
Instead of providing free shipping on all orders regardless of their value, store owners can set a minimum threshold that customers must reach to qualify for free shipping.
Tips to increase your free shipping conversion rate: ✅ Use your analysis to determine the optimal minimum purchase threshold for free shipping.
Experiment with different threshold levels to find the balance between increasing conversion rates and maximizing profitability.
✅ Adjust the minimum order threshold for free shipping based on factors such as customer location, purchase history, or current market conditions.
✅ Use customer data and segmentation to tailor your free shipping offers to different customer segments.
For example, offer free shipping to new customers as an incentive to make their first purchase, or provide exclusive free shipping promotions to loyal customers as a reward for their continued support.
Where to promote threshold-based free shipping on your website Right above the header on a hello bar
Navigation bar
As a progress bar on your cart page
2. Site-wide free shipping Site-wide free shipping means offering free shipping on all orders regardless of their value or contents.
This free shipping strategy can simplify the purchasing process for customers and eliminate any uncertainty about shipping costs, potentially leading to increased sales and improved customer satisfaction.
Tips to increase your free shipping conversion rate: ✅ Use limited-time offers or countdown timers to create a sense of urgency and encourage customers to act quickly to take advantage of the site-wide free shipping offer.
✅ Promote your site-wide free shipping offer alongside related products or categories to encourage cross-selling and upselling.
Where to promote sitewide free shipping on your website Banners on homepage
Under add to cart buttons on product pages
Cart and checkout page
3. Free shipping strategy for selected products Implementing a free shipping strategy for selected products can be a powerful way to attract customers and increase sales while managing shipping costs effectively.
Tips to increase your free shipping conversion rate: ✅ Consider offering free shipping on high-margin items, seasonal products, or items that are frequently purchased together to encourage larger orders.
✅ Provide responsive customer support to address any questions or concerns related to free shipping on selected products.
Where to promote a free shipping strategy for selected products Create a dedicated section on category pages showcasing products that qualify for free shipping.
This helps shoppers easily find eligible items while browsing different product categories.
Using pop-up windows or overlays on your website is an effective way to draw attention to your free shipping offer for selected products.
4. Free shipping on high purchase orders Offering free shipping on high purchase orders can be an effective strategy to incentivize customers to spend more and increase their average order value.
Tips to increase your free shipping conversion rate: ✅ Use data-driven product recommendations to suggest additional items that complement customers' current purchases and help them reach the minimum order amount for free shipping.
✅ Feature a product quiz to recommend products that qualify for free shipping based on customers' preferences or needs.
Where to promote free shipping on high purchase orders Promote the free shipping offer on high purchase orders through targeted email marketing campaigns.
Send out dedicated emails highlighting eligible products and encouraging recipients to take advantage of the offer.
Collaborate with influencers or brand ambassadors to promote the free shipping offer on high purchase orders to their followers.
5. Expedited shipping options Incorporating expedited shipping options into your eCommerce free shipping strategy can provide customers with added flexibility and convenience, while still incentivizing them to make a purchase.
Tips to increase your free shipping conversion rate: ✅ Provide multiple expedited shipping options with varying delivery speeds and costs. This way customers to choose the option that best suits their needs and budget.
✅ Tailor your messaging to different customer segments based on their preferences and behavior. For example, highlight the convenience and time-saving benefits of expedited shipping for customers who frequently make last-minute purchases.
✅ Offer flexible delivery options for expedited shipping, such as evening or weekend delivery, to accommodate customers' schedules.
Where to promote expedited shipping options on your eCommerce website As labels on product images on product listing pages. This helps customers identify products that can be delivered faster if they choose expedited shipping.
Feature expedited shipping options prominently on product pages, ideally near the "Add to Cart" button.
On the checkout page, display shipping speed options and associated costs clearly, so customers can select their preferred shipping method before completing their purchase.
6. Same-day delivery Amazon did it first.
Now, multiple eCommerce stores offer same-day delivery options.
Tips to increase your free shipping conversion rate: ✅ Determine the geographic regions where you can feasibly offer same-day delivery. Consider factors such as population density, proximity to fulfillment centers, and transportation infrastructure when defining your service area.
✅ Collaborate with local courier services or third-party delivery providers to facilitate same-day delivery.
✅ Clarify your return policies for same-day delivery orders to reassure customers and address any concerns they may have about returning items quickly if needed.
Where to promote same-day delivery shipping on your eCommerce store Create a dedicated section on your homepage that showcases products eligible for same-day delivery.
Highlight popular items or bestsellers that are available for immediate delivery to attract customers' attention.
If you have a mobile app, send push notifications to shoppers to promote same-day delivery options.
Offer discounts for same-day delivery to encourage shoppers to place orders.
7. In-store pickup option In-store pickup, also known as click-and-collect or buy online, pick up in-store (BOPIS), is a convenient fulfillment option offered by many eCommerce retailers.
Tips to increase your free shipping conversion rate: ✅ Implement systems that provide real-time visibility into inventory levels across all stores.
This ensures that customers are only offered in-store pickup for products that are actually available, reducing the risk of disappointment due to out-of-stock items.
✅ Let customers select their preferred pickup date and time during the checkout process, or provide options for same-day pickup for orders placed within a certain timeframe.
✅ Gather feedback from customers about their in-store pickup experience and use it to make improvements.
Ask for feedback through surveys, emails, or in-store interactions, and take action to address any issues or concerns raised.
Where to promote in-store pickup shipping Homepage banners
Product page descriptions
Targeted online ads from Google Ads or Facebook Ads
8. Loyalty program-based shipping A loyalty program-based shipping strategy in eCommerce involves offering special shipping benefits and incentives to members of your loyalty program.
Tips to increase your free shipping conversion rate: ✅ Surprise loyal customers with unexpected shipping perks or rewards as a way to show appreciation for their continued support.
For example, offer occasional free upgrades to expedited shipping or provide free shipping on select orders as a surprise bonus.
✅ Encourage existing loyalty program members to refer their friends and family by offering shipping benefits as a referral incentive.
Provide both the referrer and the new member with shipping perks or discounts on their next order as a reward for successful referrals.
Where to promote loyalty program-based shipping on your website Share UGC from existing loyalty program members who have benefited from the shipping perks offered by the program.
Create dedicated landing pages on your website that provide comprehensive information about your loyalty program and its shipping benefits.
9. Free shipping for seasonal or holidays Offering free shipping for seasonal or holiday shipping is a strategic move that can attract more customers and boost sales during peak shopping periods.
Tips to increase your free shipping conversion rate: ✅ Determine the duration of the free shipping promotion, aligning it with the start and end dates of the holiday season or specific seasonal events (e.g., Black Friday, Christmas, Valentine's Day).
✅ Host flash sales or limited-time offers with countdown timers where free shipping is available for a short period, such as a few hours or a single day.
✅ Consider extending the free shipping promotion beyond the holiday season to capture post-holiday sales and encourage customers to continue shopping with you.
Where to promote seasonal or holiday free shipping on your website Rotate banners or promotional images throughout your website that highlight the seasonal or holiday free shipping offer.
Create gift guides or curated collections that feature products eligible for seasonal or holiday free shipping.
Organize these guides by the recipient, price range, or theme to help customers find the perfect gifts while also benefiting from the free shipping offer.
10. Free shipping to specific locations Offering free shipping to specific locations can be a targeted strategy to attract customers from those areas and incentivize them to make purchases.
Tips to increase your free shipping conversion rate: ✅ Determine which specific locations you want to offer free shipping to.
This could be based on geographic regions, such as countries, states, cities, or ZIP codes, or it could be based on other criteria such as areas with high customer density or strategic importance for your business.
✅ Use geo-targeting capabilities in your advertising campaigns to target customers from specific locations with ads promoting free shipping.
Tailor your ad creative and messaging to resonate with the preferences and interests of customers in each region
Where to promote sitewide free shipping on your website Use promotional codes or coupons to offer free shipping to specific locations.
Provide customers with unique codes that they can enter during checkout to apply the free shipping discount to their orders.
Send targeted email campaigns to customers from specific locations to promote the free shipping offer.
Use segmentation based on location data to ensure that the right customers receive relevant offers and incentives.
Recommended reading: How To Offer Free Shipping And Recover Costs 11. Free shipping on product bundles A free shipping strategy on product bundles increases the average order value and incentivizes customers to purchase multiple items together.
Tips to increase your free shipping conversion rate: ✅ Set a minimum bundle size or order value to qualify for free shipping.
This encourages customers to add more items to their bundles to meet the threshold, increasing the average order value and maximizing the benefits of free shipping.
✅ Offer a variety of product bundles to cater to different customer preferences and needs.
Create bundles at various price points, with different combinations of products, to appeal to a broader range of customers and increase conversion opportunities.
Where to promote product bundle shipping on your website Create a separate page specifically for product bundles, making it easy for customers to browse available shipping options.
Build comparison charts or tables that highlight the cost savings and benefits of purchasing product bundles compared to buying individual items separately.
12. Eco-friendly shipping option Implementing eco-friendly shipping options for eCommerce stores is an excellent way to reduce your carbon footprint and appeal to environmentally conscious customers.
Tips to increase your free shipping conversion rate: ✅ Partner with shipping carriers that offer carbon-neutral shipping options.
✅ Offer reusable packaging options to customers, such as reusable tote bags or returnable shipping containers. Encourage customers to return packaging materials for reuse or recycling to minimize waste and environmental impact.
Where to promote eco-friendly free shipping on your website Feature prominent messaging on your website homepage, product pages, and checkout process that highlights your eco-friendly shipping options.
Introduce a green rewards program that incentivizes customers to choose eco-friendly shipping options by earning points or rewards for each sustainable purchase.
Customers can redeem their points for discounts, free products, or donations to environmental causes.
13. Out-of-hours delivery options Offering out-of-hours delivery options can provide added convenience for customers who may not be available to receive deliveries during standard business hours.
Tips to increase your free shipping conversion rate: ✅ Offer customers options to select specific delivery windows outside of standard business hours, such as evenings or weekends.
✅ Partner with local delivery companies or couriers that specialize in out-of-hours delivery services.
Where to promote out-of-hours delivery on your website Include a link to your delivery information page or a dropdown menu item highlighting out-of-hours delivery options in the header navigation menu of your website.
Add a section to your shipping policy page that specifically addresses out-of-hours delivery options.
Clearly outline the types of out-of-hours delivery services available and provide information about how customers can request or select these options.
Psychology of Free Shipping Research in consumer psychology supports the effectiveness of free shipping as a powerful marketing tool in eCommerce.
Here are some key findings from studies:
a. Perceived value Research published in the Journal of Marketing found that consumers perceive free shipping offers as more valuable than equivalent price discounts.
This perception of added value can lead to increased purchase intentions and higher customer satisfaction.
b. Behavioral economics Studies in behavioral economics, such as those conducted by Nobel laureate Richard Thaler, have demonstrated the influence of loss aversion and framing effects on consumer decision-making.
Free shipping taps into these principles by removing the negative framing associated with paying for shipping and mitigating the loss aversion that can lead to cart abandonment.
c. Impact on purchase behavior Research published in the Journal of Retailing and Consumer Services has shown that free shipping offers can significantly impact consumer purchase behavior.
Customers are more likely to make a purchase and spend more when free shipping is offered, particularly when it's combined with a minimum purchase threshold.
d. Customer satisfaction and loyalty A study published in the Journal of Interactive Marketing found that offering free shipping can enhance customer satisfaction and increase loyalty to a retailer.
Customers perceive free shipping as a positive service attribute and are more likely to repeat purchases from retailers that offer it.
e. Competitive advantage Research conducted by Nielsen has shown that free shipping can provide a competitive advantage for online retailers.
It can differentiate a retailer from competitors, attract new customers, and increase market share, particularly in markets where free shipping is expected or common.
Free Shipping Statistics in eCommerce Certainly, here are some statistics related to the impact and effectiveness of free shipping in eCommerce:
a. Increased conversion rates According to a study by eMarketer, 47% of online shoppers said that they would abandon their cart if they found out free shipping was not included.
Offering free shipping can lead to higher conversion rates by reducing cart abandonment.
b. Purchase threshold Data from a UPS Pulse of the Online Shopper study showed that 58% of shoppers add items to their cart to qualify for free shipping.
This illustrates how minimum purchase thresholds for free shipping can encourage customers to spend more.
c. Consumer expectations The National Retail Federation's Consumer View report found that 75% of consumers expect free shipping even on orders under $50.
This indicates that free shipping has become a standard expectation among online shoppers.
d. Impact on sales According to a study by ComScore and UPS, 58% of consumers said they would add more items to their cart to qualify for free shipping.
Additionally, 83% said they are willing to wait an additional two days for delivery if shipping is free.
e. Competitive advantage Research from Statista indicates that 90% of online retailers offer some form of free shipping.
In a competitive market, offering free shipping can be crucial for standing out and attracting customers.
f. Customer satisfaction A study by Temando found that 61% of consumers are more likely to buy again from an online retailer that offers free shipping.
Free shipping can enhance customer satisfaction and loyalty, leading to repeat purchases.
How Free Shipping Impacts Average Order Value (AOV) Most eCommerce brands know that free shipping is not technically ‘free’, for both eCommerce business owners and customers.
Therefore, you might be wondering how exactly the free shipping model works.
The basic idea is to increase the average order size so that eCommerce stores can sustain some business margins.
For example, your AOV is $160 and your average margin is $80.
If you’re paying $30 for shipping, then you get to keep $50. eCommerce businesses need to calculate what would make their AOV profitable so that they can absorb the cost of shipping.
So when you try to get an estimate of what the “true cost” of free shipping is, you have to account for several factors.
You will face fierce competition from major retailers.
The Amazons and Walmart's of the world are exposed to very different costs and margins compared to small and medium-sized businesses.
Apart from postage cost, you will need to account for:
delivery area surcharge (DAS) extended delivery area surcharge (EDAS) packaging material cost, labor costs payment method fees The way a business absorbs its shipping costs. Large retailers naturally have the advantage of scale, which means when shipping costs are divided by volume, it’s drastically lesser than what small to mid-sized businesses end up paying.
You might also want to read: 25 Proven Ways To Reduce eCommerce Shipping Costs
Steal These Free Shipping Copy Templates Here are 50 free shipping copy templates you can steal:
"Enjoy free shipping on all orders today! No minimum purchase required. Shop now!"
"Limited time offer: Free shipping on your entire order! Don't miss out, start shopping!"
"Get your favorites delivered for free! Free shipping on every order, every day."
"No shipping fees, no problem! Free shipping on all orders, all the time."
"Unlock free shipping on all orders! Start filling your cart now."
"Ready, set, ship for free! Enjoy complimentary shipping on all orders."
"Shipping's on us! Enjoy free delivery on every order."
"Say goodbye to shipping costs! Enjoy free shipping on every purchase."
"Shop stress-free with free shipping! No code needed, just add to cart."
"Your order ships free! Enjoy complimentary shipping on all purchases."
"Free shipping frenzy! Dive into our collection and enjoy complimentary delivery on all orders."
"Shipping fees? Not here! Enjoy free shipping on every item in your cart."
"Your wish is our command: free shipping on all orders! Start browsing now."
"Score free shipping on all orders, hassle-free. Shop now and save!"
"Ready, set, ship! Enjoy free delivery on all your favorite items."
"Today's forecast: free shipping on every order! Don't miss out, start shopping."
"Free shipping made easy! Treat yourself without worrying about shipping costs."
"No strings attached! Enjoy free shipping on all orders, because you deserve it."
"Free shipping, always on us! Shop now and enjoy the perks."
"Don't wait, ship for free! Enjoy complimentary shipping on every purchase."
Free shipping extravaganza! Dive into our selection and enjoy complimentary delivery on every order."
"Shipping costs weighing you down? Not anymore! Enjoy free shipping on all orders, every day."
"Say goodbye to shipping fees! Enjoy complimentary delivery on all your favorite products."
"Ready, set, ship for free! No minimum purchase required. Start adding to your cart!"
"Your wallet will thank you: free shipping on all orders! Shop now and save."
"Enjoy the freedom of free shipping! No codes needed, just shop and ship."
"Shipping stress? Not here! Enjoy free delivery on all orders, no exceptions."
"Unlock the secret to free shipping! Enjoy complimentary delivery on every item."
"Shipping made simple: it's free! Shop now and enjoy the convenience."
"Don't let shipping costs hold you back! Enjoy free shipping on every order, today and every day."
Experience the joy of free shipping! No minimum spend required. Start shopping now."
"Free shipping awaits! Enjoy complimentary delivery on all orders, because you deserve it."
"Ready, set, shop with ease! Free shipping on every order, always."
"Why pay for shipping? Enjoy free delivery on all orders, no exceptions."
"Sail through checkout with free shipping! Start adding to your cart now."
"No shipping fees, just smiles! Enjoy free delivery on every purchase."
"Don't wait, enjoy free shipping today! Shop now and skip the extra costs."
"Your wallet will thank you: free shipping on every order, every time."
"No tricks, just treats: free shipping on all orders. Start browsing now."
"Free shipping is our gift to you! Enjoy complimentary delivery on every item."
"Free shipping, because we believe in making your shopping experience delightful. Enjoy it on every order!"
"Why pay for shipping when you can enjoy it for free? Shop now and enjoy complimentary delivery on us."
"Free shipping, because your satisfaction means the world to us. Start shopping and enjoy the perks!"
"Enjoy the convenience of free shipping on every order. No hoops to jump through, just pure savings."
"Shipping shouldn't cost you a penny. That's why we offer free shipping on all orders, no minimums."
"Free shipping is our way of saying thank you for choosing us. Enjoy it on every purchase!"
"No need to worry about shipping costs. Enjoy free delivery on every order, every time."
"Ready, set, ship! Enjoy free shipping on all orders, sit back, and let us handle the rest."
"Free shipping today, tomorrow, and always! Start shopping now and enjoy the benefits."
"Free shipping, because every order deserves a little extra love. Shop now and enjoy the perks!"
Free Shipping Conversion Rates - FAQs 1. What is free shipping in eCommerce? Free shipping in eCommerce refers to offering delivery of purchased goods to customers without charging any additional shipping fees.
This marketing strategy often attracts customers, increases sales, and competes with other online retailers.
2. Is free shipping really free? While "free shipping" may sound like there are no costs involved for the customer, in reality, someone always bears the cost of shipping.
Here's how to cover the cost of free shipping:
Cost absorbed by the seller: In many cases, the seller or eCommerce platform covers the cost of shipping.
They might do this by adjusting their pricing strategy to include shipping costs in the product prices or by absorbing the shipping expenses as part of their operational costs.
Cost passed on to customers indirectly: Even if a customer doesn't explicitly pay for shipping, the cost of shipping is often factored into the overall pricing of products.
For example, a product priced at $25 with free shipping costs $20 with $5 allocated for shipping.
So, in essence, customers are still paying for shipping—it's just bundled into the product price.
Promotional costs: Offering free shipping can be seen as a marketing expense for businesses.
They might absorb the cost of shipping to attract more customers, increase sales, or compete with other retailers.
Volume discounts: Larger eCommerce platforms or retailers may negotiate lower shipping rates with carriers due to the volume of packages they ship.
This offers shoppers free shipping at a lower cost per package.
Conditions apply: Free shipping might come with conditions, such as a minimum purchase threshold, to ensure that the cost of shipping is covered by the revenue generated from the sale.
3. Do people buy more with free shipping? Studies and industry observations consistently show that offering free shipping can lead to increased sales and higher conversion rates in eCommerce.
There are several reasons why free shipping tends to encourage people to buy more:
Psychological appeal: Free shipping creates a perception of added value for customers. It removes an additional cost barrier, making the overall purchase seem more attractive and affordable.
Incentive to spend more: Many retailers offer free shipping for orders that meet a minimum purchase threshold. This encourages customers to add more items to their cart to qualify for free shipping, ultimately increasing the average order value.
Reduced cart abandonment: High shipping costs are a common reason for cart abandonment in eCommerce. Offering free shipping can help reduce this phenomenon, as customers are less likely to abandon their carts if they know they won't incur additional shipping fees.
Competitive advantage: In a competitive market, offering free shipping can differentiate a retailer from competitors and attract more customers. It's a popular tactic used by eCommerce businesses to stay competitive and increase market share.
Improved customer satisfaction: Free shipping can enhance the overall shopping experience for customers, leading to greater satisfaction and potentially repeat business.
Marketing and promotions: Free shipping promotions, especially during peak shopping seasons or holidays, can drive traffic to eCommerce websites and increase sales.
4. Do customers care about free shipping? Customers care about free shipping because it saves them money, adds convenience, and creates a perception of value.
It builds trust, fosters loyalty, and enhances transparency in pricing.
Free shipping can be a competitive advantage, especially in markets where it's expected.
It's also a powerful marketing tool, driving sales and customer satisfaction.
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