Shipment for Online Store: Zero Price VS. Lower Price

Hermes_Fang

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If you run an online business, you want to make money while keeping your customers happy. These two are the foundation of your company's existence. Offering free delivery and online discounts are two of the most common methods. You'll add value to your clients' orders while saving them money. A lousy plan for using both free delivery and discounts, on the other hand, might lose your company a lot of money.

We'll examine the differences between free and cheaper delivery options and how they affect your business, and which one you should utilize.

Zero Price Effect

According to research, when customers are shopping and have a variety of alternatives to pick from, they tend to associate higher costs with higher quality and value.

Online customers generally welcome a greater price in any category. In addition, when consumers consider free services or products, they do not separate the benefits from the cost; they believe the benefits to be much greater. If goods, merchandise, or services are provided for free, this aspect of human nature drives us to seek value. As a result, we feel unique and appreciated, which tends to direct our loyalty antenna to a specific brand.

Concept of Free Delivery

According to statistics, consumers in the 46 to 75 age group favor free delivery. Besides, free delivery is most popular among consumers aged 56 to 65, who account for 35.5% of the total. As a result, this group is unconcerned with internet bargains.

Although free delivery is preferred by 93% of customers over discounts, if you go all out for free delivery, it will affect your firm in the long run since the rising costs will cut into your earnings.

No Straight Shipping Strategy

There is no one-size-fits-all method for how online retailers should manage delivery. You'll need a well-thought-out fulfillment approach that benefits you and your customer.

Depending on a client's characteristics, such as geography, loyalty, and the nature of the order, it may entail a free shipment or a combination of free and paid shipping.

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Zero Price VS. Lower Price

Between low product costs and free shipping, there is no apparent winner. Each is distinct, and you should consider them as methods to improve your bottom line and order value. To save money, a consumer might choose to purchase larger quantities.

As a result, they may be able to meet the minimum order requirement for free delivery. Before deciding on a winning approach for your digital business, consider the following steps.

Analyze the Cost

It's not a good idea to raise the price of certain items if sales are down. Reduce the cost of a product when sales volume increases to avoid losing its perceived worth. People tend to spend more during the holiday season (Thanksgiving, Christmas, etc.) Consider offering free delivery to increase the average order value (AOV) and give customers the impression that they are getting a good bargain.

When using free delivery, make sure the quoted minimum basket size is larger than your normal basket size. Free delivery will be advantageous and cost-effective as a result of this strategy.

Understand the Market

The sort of market in which you operate will determine your eventual approach. It's critical to adjust your pricing strategy according to the eCommerce channel you choose. For example, you could have a best-selling book on Amazon with numerous shipping options, while the pricing on your website may change based on traffic and customer trends on both platforms.

Diversify your costs regularly to appeal to a diverse audience with varying requirements and perspectives. Use data to assist you with shipping methods as well. Amazon, for example, offers two shipping options: Seller Fulfilled Prime and Fulfillment by Amazon (FBA).

If you use eCommerce platforms such as Shopify, Shoplazza, etc., you may have extensions for dropshipping. The price for the product and shipment will depend on your sources.

Conclusion

There is no one-size-fits-all method for how online retailers should manage delivery. You'll need a well-thought-out fulfillment approach that benefits both you and your customer. Free delivery is one strategy that can be advantageous and cost-effective for your business.

(Contributed by Muhammad Zeeshan & Hermes Fang)

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6 years experience in digital marketing. A gracious loser, not a lousy winner.

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