shipping-tips-in-easystore-that-grow-your-profit-margin

Shipping tips in EasyStore that grow your profit margin

By Vincent Leong · 30th September, 2022

No doubt, who doesn’t like free shipping?

And do you know that free shipping is one of the best strategies to increase sales?

In fact, 77% are more likely not to buy from an online retailer that doesn’t provide free shipping.

Here are some helpful hints to help you understand the power of free shipping and how to set up a free delivery strategy that works!

Why free shipping?

Free shipping plays an important role not only to increase sales, it’s also pivotal in shaping shopper’s decision of where and how much to spend their hard-earned money.

Reduce abandoned checkout

Surprise shipping fees are the main cause of abandoned carts because extra delivery fees will reduce their purchase intention.

Is either they pay for the shipping fee, or they might remove items from their shopping carts since they don't spend enough to qualify for free shipping.

Discount erodes product’s value

Not all discounting strategies have to result in doom and gloom. Considering the long-term impact discount and promotions may bring to your business. Not only does it hurt your profit margin as sales promotion giving an indirect impression of product value decrease.

In the long run, you will find yourself in the promotion trap when you’ll need to offer discounts to grab sales. No promotion = no sales

Increase shopping size

When free shipping requires a minimum order size, such as $25, $50, or $100, your customers will want to add more products to their basket in order to meet the minimum order size requirement.

If your customer cart total is $45 and require $5 to enjoy free shipping, would you think he/she will forgo the deal or add more to the cart?

Control over the cost of shipping fee in EasyStore

Although free shipping is a cost to your business.

However, you do have more flexibility to control over the cost. Due to our free shipping versatility, it's also possible to regain margin.

As it makes sense that customers enjoy free shipping because it gives them the impression that they are saving money. It would be wise for retailers to figure out how to offer it.

Create a shipping promotion

If offering free shipping will cost too much, then create a shipping promotion that offers partial discount on the shipping rate if a buyer’s order exceeds a certain amount.

Set limits across regions

Even if you plan to provide free shipping to all of your customers in different locations, you might wish to place restrictions on these offers.

If your warehouse is located in West Malaysia, for example, you can provide free shipping without a minimum purchase amount or lower requirements.

Additionally, free shipping requirements will be set slightly higher for East Malaysia shipments.

Offset shipping cost by increasing selling price

It's fascinating to understand the psychology behind internet shopping and consumer preferences. You can show customers two options with the same total amount, and most likely they would choose the one with a free delivery charge instead. Visually, free stuff is more attractive to trick them in believing they get the best bargain.

Shipping fee alternatives for any situation

Free shipping is a great marketing tool.

But if you can't always offer free shipping, that's understandable.

However, you can continue to enjoy the benefits by occasionally running free shipping promotions. Here are some budget-friendly options you can consider:

Flat-rate shipping rate

If you can’t shoulder the entire shipping rate, you could always relegate some amount to the customer.

What’s good about cheap, flat-rate shipping is the transparent cost. This helps build trust, as customers don’t have to keep guessing about the shipping rate that they need to pay.

Create discount for shipping fee

Another alternative which you can consider using free shipping as a promotional tool to increase sales if promotion cannot be offered continuously. Use it as a promotion to sell off older inventory at full price during a slower time of year. Additionally, many carriers tack on extra fees around the holidays, so you can end the promotion in time to avoid bearing that extra shipping cost.

Selected location free shipping

Shipping price depends on the shipping destination.

With that being said, you can try free shipping for shipping zones that come with a cheaper shipping rate.

Selected product free shipping

Are there items that don't sell as well as the others? This can be frustrating, especially if the product is a high-priced one.

If you want to clear this product off your shelf, you should create a free shipping rate. Not only will this help you get more profits, but it will also give you space to stock more items.

How to set up free shipping discount in EasyStore?

There are 2 ways to go for free shipping on EasyStore:

Order shipping discount

  1. Go to your EasyStore admin panel
  2. Click on discount > look for shipping
  3. Follow through the necessary setting
  4. Edit the advance setting for:
    • Limited time
    • Method of redemption
    • Usage limit

Specific product free shipping

  1. Go to EasyStore admin panel
  2. Click on product dashboard
  3. Look for the product that you would like to offer free shipping
  4. Click on “Free shipping” toggle and remember to hit the save button

Conclusion

Shipping and handling are unavoidable logistics costs when running an ecommerce business. Having the right strategy in place helps you reduce shipping costs and ultimately grow your business.

Start selling online for free


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