How To Do Free Shipping On Shopify To Boost Sales
Ever wondered how to do free shipping on Shopify? By utilizing this tried and tested sales tactic, you will not only increase your profit margins but also help to promote your brand. These days, most online shoppers expect free shipping, especially when purchasing expensive items.
Although free shipping may not be top of mind for merchants, it can actually be extremely beneficial in terms of business growth and customer retention.
If you would like to get the scoop on how to offer free shipping on Shopify, then keep reading.
Why Free Shipping Is Such A Big Deal For Online Shoppers
When online shopping first became popular, free shipping was considered optional. By not being commonly offered, it gave merchants a leg up on their competition. These days, however, online shoppers expect free shipping.
In fact, more than 60% of Americans state that free shipping greatly influences their online purchasing decisions. According to Internet Retailer, more than 65% of online sellers offer free shipping on at least a portion of their orders.
Free shipping on Shopify is no exception. In 2020 alone, more than 75% of Shopify merchants enabled free shipping on their online stores.
In other words, if you would like to keep up with the times, then knowing how to do free shipping on Shopify is key. Why? Because according to research, most online shoppers expect free delivery and will even abandon their carts if they don’t get it.
To the inexperienced merchant, this behavior may seem a bit odd. If a customer wants a certain product bad enough, why would shipping costs deter him or her? The answer to this question is multifaceted.
Online shopping can be stressful, especially if you are buying something from a new online shop. Free shipping, along with free return policies, can put online shoppers at ease in case they aren’t satisfied with their purchase.
When offering free shipping, you cancel out those unforeseen extra costs that shoppers may not have accounted for. It also shows that you will go the extra mile for your customers. And great customer service is one of the main ways to turn once-off buyers into return buyers.
When To Offer Shopify Free Shipping
When trying to figure out how to do free shipping on Shopify, the first question that may come to mind is when to offer this perk to customers. Most Shopify sellers can’t offer free shipping on all of their products all year round.
Of course, if you want to offer free shipping on all your products, then you can always do so by covering the shipping costs with your profits. However, that will require you to either increase your prices or settle for a lower profit margin altogether.
Free Shipping Specific Products
An alternative option would be to approach free shipping from a more strategic angle. Instead of offering free shipping year-round, you can utilize it to up the sales on specific products. This allows you to have more control over your shop inventory, especially when it comes to products that are not selling that well.
Free Shipping When Customers Spend A Certain Amount
You could offer free shipping if customers spend over a certain amount at your store. This will incentivize customers to buy more products or more expensive products so that they benefit from free shipping.
This is also a great way to increase the value of all online orders during a sale. This sales tactic encourages customers to fill up their carts and allows you to meet your free shipping threshold. Basically, this means you will make enough profit on each order to cover the shipping costs.
Free Shipping For Loyal Customers
Another strategy you could use is to provide a Free Shipping coupon or code when a customer has spent a certain amount of money at your store. They can then use this for their next purchase and enjoy the free shipping as a reward for buying from you. This is a great way to reward loyal customers.
Free Shipping On Products That Are Near Expiration
If you sell products that are nearing their expiry date, then free shipping can help you to offload extra inventory. This is also applicable to items that are only in high demand for a certain amount of time. For example, this can include Christmas items.
Not only can free shipping help you to minimize wastage in this scenario, but it will also ensure enough storage space for new stock when you need it most.
When done right, free shipping on Shopify can equal a win-win situation for both you and your customers.
How To Make Shipping Free On Shopify: Calculating Shipping Threshold
When figuring out how to do free shipping on Shopify, every merchant must calculate their own shipping thresholds. This will help you to determine what your minimum order value should be if you want to make a profit and still cover your shipping expenses. At first, it may seem a bit complex, but in the long run, it’s completely worth it.
All you need to know to start out with is your median order value (MOV). This value can be thought of as the midpoint of all your sales probabilities in a set of values.
In other words, once you know what your median order value is, you will also be able to see that half of all your orders fall below this point, with the other half staying above it. Keep in mind that the more sales data you have, the more accurate your shipping threshold analysis will be.
Let’s say your Shopify shop has only ever had five orders to the value of $90, $113, $72, $45, and $115. Your median order value would then be $90. Remember, your median order value is the midpoint in a set of values that has an equal number below and above it.
Once you have established your median order value, the rest is easy. Set your free shipping threshold to just above your median order value. Most likely, this will encourage your buyers to add an extra item to their cart to qualify for free shipping.
Alternative Ways To Establish Your Shopify Shipping Threshold
Here are some alternative ways to establish your Shopify shipping threshold:
- Use Reconcilely. This incredible online tool can help you to stay on top of your Shopify accounting and sales so that you can easily and accurately determine your free shipping threshold.
- Calculate your average order value (AOV) and set your free shipping threshold just above this figure. Keep in mind that outliers may compromise the accuracy of your average order value.
- Weigh up the total costs of your shipping expenses to what you are charging customers. If your shipping expenses are not being covered by your asking price, then you’ll need to increase your shipping threshold.
How To Set Free Shipping On Shopify Based On A Fixed Amount
In this next section, we are going to show you how to do free shipping on Shopify when it comes to orders over a set amount.
- Go to your Shopify dashboard to the Settings panel and click on the Shipping tab.
- Next, go to the zone in which you want to offer free shipping and click on Edit.
- Head over to the price-based rate section and click on the Add Rate tab.
- Enter a name for your shipping rate and then fill in the maximum and minimum values of the order.
- Check the free shipping rate box and click done.
Now eligible customers that make an order between your chosen values will be able to checkout with free shipping.
How To Add Free Shipping To Shopify Orders Based On A Set Weight
In this section, we are going to show you how to do free shipping on Shopify when it comes to orders over a certain set weight.
- Go to your Shopify dashboard and click on your Settings panel.
- Head over to the Shipping tab and hover over the zone where you want to offer free shipping.
- Click on Edit.
- Click on Add Date in the weight-based rate segment.
- Now, enter a name for the shipping rate and enter the minimum and maximum weight of the order. Remember to check the free shipping rate box.
- Click on the Done tab.
Now eligible customers that make an order of the appropriate weight will be able to checkout with free shipping.
Whether you want to offer free shipping on Shopify based on weight or order amount, you can utilize both methods to boost sales.
Your shipping threshold will be able to guide you when establishing the perfect minimum order amount, or weight, that’s eligible for free shipping.
Remember, in the end, it’s best to settle on a Shopify shipping deal that will benefit both you and your customers.
In Summary
When learning how to do free shipping on Shopify, it is important to look at your free shipping strategy from all angles. Free shipping is a great way to boost sales and incentivize customers to shop at your store. But, you have to make your free shipping offer appealing enough for people to keep filling their carts.
Both you and your customers have to benefit from your free shipping deal in order for you to maintain your company's growth.
