Small businesses have always struggled to compete with larger corporations due to their limited resources and budget. Shipping costs are a significant expense for small businesses, especially those that operate online. Offering free shipping is one way that small businesses can level the playing field and remain competitive. In this blog, we’ll explore the benefits of offering free shipping for small businesses.
The benefits of offering free shipping for small businesses
- Attracting Customers Free shipping is a powerful incentive for customers to make a purchase. It is a well-known fact that customers are more likely to purchase from a retailer that offers free shipping than one that does not. According to a survey conducted by Statista, 76% of US consumers said that free shipping is the most important factor when making a purchase online. Offering free shipping can increase the chances of customers buying from your small business.
- Increased Sales Offering free shipping can increase sales for small businesses. According to a study conducted by ComScore, customers are more likely to purchase additional items when free shipping is offered. In the same study, it was found that customers who received free shipping spent an average of $48 more than those who did not receive free shipping. This means that offering free shipping not only attracts customers, but it can also increase the average order value.
- Increased Customer Loyalty Offering free shipping can help to build customer loyalty. Customers are more likely to return to a retailer that offers free shipping than one that does not. In fact, according to a survey conducted by Walker Sands Communications, 79% of customers said that free shipping would make them more likely to shop online. Offering free shipping can help to create a loyal customer base, which can lead to increased sales over time.
- Competitive Advantage Offering free shipping can give small businesses a competitive advantage. It can be a way to differentiate your small business from larger corporations that may not offer free shipping. Customers are more likely to choose a small business that offers free shipping over a larger corporation that does not. Offering free shipping can help to level the playing field and give small businesses a chance to compete with larger retailers.
- Reduced Cart Abandonment Cart abandonment is a common problem for online retailers. Customers often abandon their shopping carts due to unexpected shipping costs. Offering free shipping can reduce cart abandonment rates and increase the chances of customers completing their purchases. According to a survey conducted by the Baymard Institute, unexpected shipping costs are the number one reason why customers abandon their shopping carts. Offering free shipping can help to address this problem and reduce cart abandonment rates.
- Increased Brand Awareness Offering free shipping can increase brand awareness for small businesses. Customers are more likely to share their positive experiences with others, which can lead to increased word-of-mouth marketing. Offering free shipping can also lead to increased social media engagement, which can help to increase brand awareness. Small businesses can use free shipping as a way to create buzz and generate interest in their brand.
- Improved Customer Experience Offering free shipping can improve the overall customer experience. Customers appreciate the convenience and simplicity of free shipping. It can make the shopping experience more enjoyable and less stressful. Offering free shipping can help to create a positive customer experience, which can lead to increased customer satisfaction and loyalty.
conclusion
In conclusion, offering free shipping can have numerous benefits for small businesses. It can attract customers, increase sales, build customer loyalty, provide a competitive advantage, reduce cart abandonment rates, increase brand awareness, and improve the overall customer experience. Small businesses should consider offering free shipping as a way to remain competitive and grow their business.
Read about our post on The challenges faced by women entrepreneurs in small to medium-sized businesse here.
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