Free delivery: turn it into profits for your business

Free shipping is an increasingly popular benefit for e-commerce customers. Don't pay a penny for delivery? Customers have become accustomed to it, and now expect the option to be available, at the risk of shopping cart abandonment when the order is finalized.

However, as Confucius said, "Nothing is ever without consequences - Therefore, nothing is ever free." And when it comes to e-commerce, it is common to find many sites offering free shipping, and this for a simple purpose: to generate interest, and (with no surprises) sales.

The reality of this free delivery for the end customer, when it comes to delivery costs, is quite different. It is difficult to compress costs without cutting into the margin, and someone at the end of the chain must amortize these costs: the e-merchant. The question asked today in this article is how you can take advantage of the free shipping offer and turn it into a competitive advantage.

Some facts :

As Europe already enjoys particularly low shipping prices compared to the rest of the world, free shipping is a popular option there. However, consumers are aware that such an offer is negotiated with conditions, such as a minimum order requirement, for example.

Such offers can have negative effects on smaller traders. Platforms such as Amazon or CDiscount, which are true mastodons, pride themselves on being able to absorb the costs of the free delivery. On a smaller scale, these operations must be conducted carefully so as not to impact the sales margin too abruptly.

Set up free shipping efficiently in your e-shop:

Eliminate shipping costs from your interface so that free shipping is not enough for an attractive setup. It comes with some constraints to take into account before integrating it on your site. Constraints, yes, but remember that free shipping represents a competitive advantage in the landscape of online sales! And for good reason, it is an additional motivation for the act of buying for 9 out of 10 consumers surveyed by Walker Sands in the Future of Retail Study. As mentioned earlier, it is important to find your strategy when it comes to offering deliveries. Here is a series of tips to apply when you want to be able to optimize without putting yourself at risk.

1. Choosing an optimized packaging

In terms of packaging, two watchwords: efficiency and protection. For example, custom packaging will make a difference to a customer, but the cost of the cartons will be increased, only to be abandoned and thrown away. Also, customized cartons are more subject to theft than standard, more discreet cartons. It is important to think about optimization according to the size of the products shipped. Ordering cartons in large quantities to save money may be worthwhile, but beware of long term loss. It's better to make sure you have the right boxes for each product, so that you don't lose raw material. IKEA is a pioneer in packaging optimisation. Their ingenious products can be transported in cartons that are perfectly adapted to the size of the product, no matter how large it is. No waste and surplus to consider.

2. Define your delivery strategy :

To begin with, your bestsellers are your best friends when it comes to defining your delivery strategy. They are always the same size, and you can capitalize on their sales to make your forecasts. These variables give you solid leeway when negotiating your carrier rates. Play the competition, control the different possible rates, and choose your carrier intelligently based on negotiated prices.   Sometimes it's better to offer the free delivery option in specific cases. Seeing a customer abandon a basket when choosing a delivery method is a bad sign. A reminder email can be sent to the customer offering the free delivery option to encourage the act of purchasing. Finally, offering free delivery in a targeted way helps to avoid loss of turnover

3. Have flexible delivery systems:

Once your logistics costs have been calculated, it is interesting to think about different offers around delivery options. Many sites warn their customers that free deliveries may take longer to deliver. Because faster deliveries are more expensive, an e-merchant will make sure that his margin is not too much impacted. The best thing for a merchant is to make an evaluation of the logistics costs according to the shipping methods chosen. Then according to the data he collects, define the best offer to propose to his customers. You can also offer delivery according to the type of shipment: standard, relay point or express. This will allow you to amortize the cost of free shipping on the options that you will continue to charge. In principle, free shipping will never be totally free. However, it is an advantage for e-merchants to consider it. Analyzing its logistical functioning reveals ways to satisfy customers and get ahead of the competition.

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