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Small Business Showdown: Should Your Small Business Provide Free Shipping to Customers?

Small Business Showdown: Should Your Small Business Provide Free Shipping to Customers?

As we roll into a new year, many companies are wondering how they can improve their business in 2021. One idea that seems to have stuck is the idea of providing free shipping to customers. Is this really as great of a plan as it sounds like? Can you realistically still charge for shipping? Get our thoughts and then contact Square One Business Machines at (972) 370-3664 to get help finding the right shipping solutions.

Free Shipping Has Become the Standard

For most shoppers, free shipping is not a perk anymore – it is a standard they accept. The question is whether or not you need to provide free next-day shipping. While that might matter in the week leading up to the holidays, is it necessary to offer this perk for the rest of the year? Let us take a look at eh data.

One Study Showed Interesting Ideas

One study found that most customers do want free shipping, but they are fairly flexible when it comes to timing. Nearly 75% of shoppers did say that free shipping was an essential factor when they were buying something online. Nearly half said they would shop around if they thought that one company’s shipping options weren’t good enough or cost too much.

However, fewer than 3% said that they rated fast shipping as important to their purchase. They said they would rather have free shipping than fast shipping and seem to believe that it is worth waiting to get free shipping.

Overnight Shipping Should Not Be Part of This Strategy

Yes, shoppers prefer free shipping but they do not need overnight rush delivery on each order. They do not mind waiting a little longer if shipping is free. So unless a customer specifically asks for overnight shipping, and is willing to pay a premium to get it, then it should not be part of your free shipping strategy. In fact, there are specific conditions you should put in place to make sure that it is advantageous to your company.

Include Conditions When Offering Free Shipping

It is wise to put some conditions in place to make sure that you still make a profit when free shipping is in place. For example, it is wise to require a minimum order for free shipping to take effect. Customers will often spend more to get free shipping because they would rather spend that extra amount on things for themselves – not shipping costs. You would also likely limit free shipping to the United States.

Do You Need the Right Shipping Solutions?

There are many advantages to having your own postage options at your office. If you would like to hear more about this or find out what your options are, contact Square One Business Machines at (972) 370-3664. We are happy to go over your specific situation and find the right solutions for you.