Have you ever noticed a phrase about free shipping campaigns while shopping online? Have you ever thought how many times this phrase affects our purchasing decision? The answer is probably more than you think.
Advantageous products and prices naturally attract the attention of all of us. That’s why terms such as discount and free shipping are interesting to many of us. According to research, 9 out of 10 online shoppers are influenced by the “free shipping” tag. But are these campaigns truly advantageous for consumers? Don’t companies that frequently ask for free shipping incur losses? If they were to enter, why would they offer such an advantage to customers? In this article, we will take a closer look at the term “free shipping” to understand the answers to these questions.
Free Shipping Attraction
Free shipping is a marketing strategy that allows customers to avoid additional fees. Consumers show great demand for these campaigns to avoid additional costs. The appeal behind these campaigns goes deep into neuromarketing. Because the human brain automatically reacts positively when it hears the word “free”. Free shipping offers play an important role not only in the act of shopping, but also in creating brand loyalty and increasing customer satisfaction.
The Brain and the Perception of Free
The human brain has a particularly positive response when it hears the word “free.” Free shipping campaigns enable consumers to connect this positive perception to the product and brand. Free shipping offers are a powerful tool to attract customers because the brain thinks that getting a free benefit is an enjoyable experience. Consumers tend to develop positive feelings towards a brand that offers free shipping, making the shopping experience more satisfying. Therefore, customer perception of the freebie advantage is an important way to create brand loyalty and increase customer satisfaction. Free shipping campaigns not only provide a financial advantage, but can also help consumers establish an emotional bond with the brand by leaving a positive impression on their mental world. This may contribute to the perception of shopping not only as a necessity but also as an enjoyable experience.
Urgency and Campaign Duration
The human brain is programmed to evaluate opportunities that are available within a limited time frame. The fact that free shipping campaigns are limited to a certain period of time creates a sense of urgency in consumers. From a neuromarketing perspective, this sense of urgency encourages consumers to make decisions and purchases quickly. The short duration of the campaign may trigger consumers’ fear of “missing the opportunity”, which may increase their tendency to purchase. At the same time, free shipping campaigns that are valid for a limited time make consumers feel obliged to take action immediately. This encourages them to take the next step of shopping and drives consumers to take full advantage of the offer.
Free Shipping Types
In the world of online shopping, it is possible to make the shopping experience more attractive by offering customers various free shipping options. Here are some such free shipping options:
Free Shipping Depending on Minimum Purchase Amount
Many e-commerce platforms offer not to charge shipping fees to their customers when a certain shopping amount is reached. This type of campaign encourages customers to increase their shopping carts.
Limited Time Campaign Free Shipping
Campaign free shipping offers valid for a certain period of time create a sense of urgency in customers and encourage them to make quick decisions. This can increase customer satisfaction as well as increase sales.
Free Shipping on Selected Product Categories
Some brands may offer free shipping on certain product categories or selected products. This is an especially effective strategy for brands that want to highlight certain products or sell out of stock quickly.
Free Shipping Exclusive to Member Programs
Some e-commerce sites offer free shipping exclusively to customers who participate in their member programs. This can increase customer loyalty as part of loyalty programs.
Factors to Consider Before Businesses Offer Free Shipping
There are several factors a business should consider before deciding to offer free shipping. Here are some of these factors:
Product Size
Larger items may be more expensive in shipping because they are heavy. So charge more can be done. Fees are also required for some small products. The reason here may be related to the value of the product.
Customer Location
Customers’ location may affect shipping costs. If shipping is made to remote areas, costs must be determined accordingly.
Profitability Analysis
The profitability of offering free shipping must be calculated. A detailed financial analysis should be made, taking into account shipping costs, sales prices and other expenses.
Return Policy
The return policy of products with free shipping should also be taken into consideration. Return processes and expenses should be compatible with the overall strategies of the business. These factors are important points for businesses to consider when deciding to offer free shipping.
The Impact of Free Shipping on Your Business
It can increase sales and income: If correct profit calculation is made with free shipping, income increases due to more customer demand.
Helps increase average order value: Free shipping can increase the number and value of products in customers’ shopping cart. Customers can add more items to get free shipping, which can increase the average order value.
Competitive Advantage: Offering free shipping can play an important role in marketing strategies and competitive advantage. This can be a feature that distinguishes the business from its competitors and can be attractive to customers.
Customer Loyalty and Satisfaction: Free shipping can increase customer loyalty. Customers may choose businesses that offer free shipping as an added benefit. At the same time, it can make customers more satisfied with their shopping experience.
As a result, free shipping campaigns can have a strong impact on consumers. However, for these campaigns to be successful, the right strategy, transparency and customer satisfaction must be prioritized.
