How to Optimize Your Ecommerce Value Proposition
By Tom Wintaugh
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Online retailers have long deferred free shipping, considering the cost of “free” as anything but. As consumer demands grow and threshold wars rage on, free shipping is no longer optional but an essential part of your business' fulfillment strategy.
Last week, major retailers made waves with changes to their free shipping thresholds.
This update comes two years after Target slashed its threshold from $50 to $25 in February 2015.
The megastore experienced a dip in sales last year leading up to an underwhelming holiday quarter. And while Target hasn’t shared specifics, it did disclose that “a small percentage of Target.com purchases are less than $35 so the majority of orders will continue to ship for free.” (CNBC)
So what does the future of shipping hold for your business?
“If you hear me say anything it’s this: Find a way to offer free shipping, or you’re gonna get pushed aside.” -Jon Reily, Vice President of Commerce Strategy at Razorfish
When futurist Jon Reily motioned for free shipping at MivaCon 2017, the room stirred. This option undoubtedly carries a cost for you, the retailer. But with so many raising the bar to meet consumer demands, the cost to opt out is even higher:
With a marketplace saturated with competitors vying to eat your lunch, the option to ship for free is worth its weight in gold.
Competing with consumer expectations can feel like a game of catch-up, but shipping for free does not have to come at such a high cost. In fact, the most successful retailers are treating this perk as leverage.
Implementing the right strategy upfront will lead to greater conversion. In fact, free shipping is so important that 93% of online shoppers have gone extra lengths to qualify (WSJ).
The following are six strategies you can test to maximize profits from free shipping:
What is your approach to shipping? Are you considering offering free shipping, or are you still hesitant?
Find out more about how to make shipping work for you with the resources below, then continue the conversation with us:
Miva offers a flexible and adaptable ecommerce platform that evolves with businesses and allows them to drive sales, maximize average order value, cut overhead costs, and increase revenue. Miva has been helping businesses realize their ecommerce potential for over 20 years and empowering retail, wholesale, and direct-to-consumer sellers across all industries to transform their business through ecommerce.