November 14, 2011
The success of a free shipping promotion likely comes down to whether or not the increase in sales will pay for the cost of the shipping offer. One idea you can implement is to customize aspects of the free shipping promotion based on a shopper’s distance from the warehouse or their location within a particular region. Another option is to offer free shipping on products that exceed certain price points, where shoppers might need a little financial push to make the purchase.
After dynamically installing a “Free Shipping” badge below the thumbnail of certain product images, an apparel retailer was able to quantify just how lucrative that ubiquitous little phrase has the potential to be.
This free shipping initiative yielded a projected annual revenue of almost $4 million and a lift in average order value of 12.29 percent after only one week of testing.
And by further tweaking the test to offer reduced or free shipping for a limited amount of time, on specific purchases, or on orders over a certain amount, this retailer's “Free Shipping” strategy becomes a lot more interesting.
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