Optimising Ecommerce Conversion Rates with Free Shipping

We all know people love getting something for free. And in the increasingly competitive arena of online sales, free things become more important than ever.

In particular, free shipping.

Frequently cited by customers as the biggest incentive to complete a purchase, join a loyalty scheme, or add more items to an order, free shipping significantly impacts conversion rates.

Over 50% of transactions from the world’s top 30 retailers were shipped with free delivery

This makes it an important consideration for online retailers. And the statistics are impressive; 63% of consumers who joined a loyalty program did so to qualify for free shipping. While 50% are willing to wait an additional 2-3 days for delivery if it means they get it for free.

But retailers who don’t offer free delivery often see significant impact on their sales. And in a world where free shipping is seen as the norm, paying anything at all for delivery can seem like a step too far.

The psychology of free shipping

This is all down to a psychological and economic principle called the “pain of paying”. This is an irrational discomfort around paying for certain services – such as delivery – even if we value the service. And even if we know, rationally, that it’s worth paying for.

Free shipping can, therefore, play a significant role in strengthening your brand identity. As well as developing positive, long-lasting customer relationships.

Orders with free delivery average 30% higher in value than those without

It can turn one-off site visitors into recurring, loyal customers. Free shipping can also increase sales and reduce cart abandonment. As well as increase the average revenue per user (ARPU), as customers will often add extra items to their order to hit a minimum spend for free delivery.

A huge 41% of shoppers abandon their cart if shipping costs more than expected

As digital design experts, we know the importance of making the right strategic decisions when building your ecommerce website. Making sure it integrates perfectly as part of your overall digital marketing strategy. And, more importantly, we know how to do it.

Interested in refreshing your ecommerce site and optimising your conversions? Contact us on hello@steve-edge.com to see how our digital design agency can take your brand to the next level.