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How to Offer Free Shipping on Shopify: Complete Guide + 5 Top Tips

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Offering free shipping is a powerful tool for e-commerce businesses to increase revenue and drive profitability. Customers have come to expect free shipping as a standard benefit when shopping online, and its absence often leads to cart abandonment. By implementing a free shipping strategy, businesses can address this concern and provide a compelling incentive for customers to complete their purchases.

Free shipping not only removes a barrier to purchase but also enhances the overall shopping experience. It creates a sense of value and convenience for customers, making them more likely to make larger purchases or return for future orders. This increased customer satisfaction can lead to higher customer loyalty and repeat business.

Moreover, free shipping can be leveraged as a competitive advantage. In a saturated market, offering free shipping can differentiate your business from competitors and attract more customers. It serves as a persuasive marketing tool, driving traffic to your site and increasing the chances of converting visitors into paying customers.

While absorbing shipping costs may seem daunting, the long-term benefits can outweigh the initial investment. Free shipping can lead to higher conversion rates, larger order sizes, and improved customer retention, ultimately boosting sales and profitability for e-commerce sites.

So, if you’re looking to implement a free shipping strategy for your e-commerce site, this is the place to be. Read on to find out more about how Shopify free shipping can help you boost sales and increase profitability.

What Is Free Shipping Shopify?

Free shipping in Shopify refers to a promotional strategy where online retailers using the Shopify platform, offer free delivery of products to their customers. It is a marketing tactic that aims to attract and incentivize shoppers by removing the cost of shipping from their purchase.

When a Shopify merchant offers free shipping, it means that the customer does not have to pay any additional fees for the delivery of their order. Instead, the cost of shipping is typically absorbed by the merchant themselves. Shopify free shipping can be done in the following ways:

#1: Absorbing the Cost

In this method, the merchant calculates the average shipping cost for their products and incorporates it into the product price. The increased product price covers the shipping expense, allowing the merchant to offer free shipping without losing money.

#2: Minimum Order Value

Merchants can also offer free shipping but set a minimum order value that customers must reach to qualify. For example, a store might offer free shipping on all orders over $50. This encourages customers to spend more in order to avail the benefit of free delivery.

#3: Subsidized Shipping

Some merchants may partially subsidize the shipping cost, paying a portion of the shipping fee, and the customer pays the remainder. This approach allows the merchant to share the cost with the customer, making the shipping more affordable.

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What Are Shopify Free Shipping Features?

Shopify provides several built-in features and settings that make it easy for merchants to implement free shipping on their online stores. These include:

#1: Shipping Zones and Rates

Shopify allows merchants to define specific shipping zones and set rates based on various factors like weight, dimensions, and destination. Merchants can configure free shipping options for specific zones or order criteria within these settings.

#2: Shipping Profiles

Merchants can create shipping profiles in Shopify, which define the shipping options available for different products or collections. Within these profiles, merchants can specify whether free shipping is applicable or not.

#3: Promotional Tools

Shopify provides tools to create discount codes and promotions. Merchants can create specific discount codes that offer free shipping to customers who enter the code during checkout.

With free shipping, Shopify e-commerce sites can attract more customers, increase order value, reduce cart abandonment rates, and ultimately boost sales. It has become a popular strategy in the e-commerce industry as consumers increasingly expect free or discounted shipping as part of their online shopping experience.

How to Set Free Shipping on Shopify

Setting free shipping on Shopify is a simple and straightforward process.

Remember to regularly review and update your shipping settings as your business grows or if you introduce any changes to your shipping strategy. Additionally, it’s a good practice to clearly communicate the free shipping offer to your customers through banners, product pages, or promotional campaigns to maximize its impact on your sales.

Check out this amazing guide on how to set free shipping on Shopify to get all the information you need to add free shipping to your Shopify store.

How to offer Free Shipping Shopify
Source: https://www.freepik.com/

What to Consider Before Offering Shopify Free Shipping

Before offering free shipping on your Shopify store, several important factors must be considered. Here are the key points to keep in mind:

#1: Cost Analysis

#1.1: Determine the potential impact on your profitability

Offering free shipping means absorbing the shipping costs yourself, so assessing how it will affect your profit margins is crucial. Calculate the average shipping cost per order and evaluate if you can sustain that expense while still maintaining profitability.

#1.2: Analyze order history

Review past orders to understand the average shipping cost and order value. This information will help you estimate the financial impact of offering free shipping and set thresholds accordingly.

#2: Product Pricing Strategy

Adjust product prices to cover the cost of shipping. You may need to increase your product prices slightly. Consider whether customers would be willing to pay slightly higher prices for the convenience of free shipping. Find a balance that ensures profitability while remaining competitive in your market.

#3: Shipping Zones and Distance

#3.1: Consider geographic locations

Assess the shipping zones you currently serve and the associated shipping costs. If you have customers in different countries or regions, analyze the shipping rates and determine if offering free shipping to all or only specific locations is feasible.

#3.2: Evaluate shipping distance

Consider the distance between your business location and the shipping destinations. Longer distances can result in higher shipping costs. Evaluate the impact of free shipping on orders needing to travel farther.

#4: Average Order Value and Quantity

#4.1: Evaluate average order value

Calculate the average amount customers spend per order. Offering free shipping may encourage customers to increase their order value to qualify for the benefit, boosting your revenue.

#4.2: Assess order quantities

Analyze whether offering free shipping can incentivize customers to purchase more frequently or in larger quantities. Determine if the potential increase in sales volume justifies the cost of shipping.

#5: Competitor Analysis and Market Expectations

#5.1: Research competitors

Analyze what your competitors are offering in terms of shipping options. Determine if offering free shipping is a standard practice in your industry and assess the potential impact on your competitiveness.

#5.2: Understand customer expectations

Consider the expectations of your target audience. Free shipping has become increasingly common, and customers may perceive it as a standard benefit. Evaluate whether offering free shipping aligns with your customers’ expectations and if it can positively impact their purchasing decisions.

#6: Marketing and Communication

Promote the offer if you decide to offer free shipping. Ensure that you effectively communicate this benefit to your customers. Update your website, product pages, and shopping cart to highlight the availability of free shipping. Consider using banners, popups, or email campaigns to promote the offer and drive conversions.

Please keep in mind that, carefully considering these factors, you can make an informed decision about whether to offer free shipping on your Shopify store. Balancing the financial impact with customer expectations and market competitiveness is essential for successfully implementing this strategy.

How to Cover Free Shipping Rates

When offering free shipping on your Shopify store, you’ll need to find ways to cover the shipping costs to ensure it doesn’t negatively impact your profitability. Here are several strategies you can consider:

#1: Adjust Product Pricing

One common approach is to slightly increase the prices of your products to incorporate the cost of shipping. You can cover the cost while maintaining profitability by spreading the shipping expense across all products. However, be cautious not to overprice your products and remain competitive in the market.

#2: Minimum Order Value

Implement a minimum order value requirement for customers to qualify for free shipping. This encourages customers to increase their order value, which can offset the shipping costs. Analyze your average order value and consider setting a minimum threshold that aligns with your profitability goals.

#3: Bundling Products

Offer product bundles: Create bundles or packages that combine multiple products. By selling products together as a package, you can increase the order value and make it easier to cover the shipping costs. Customers are often willing to pay a higher total price for a bundled package with free shipping.

#4: Negotiate Shipping Rates

Reach out to shipping carriers to negotiate better rates based on the volume of orders you handle. Sometimes, carriers offer discounted shipping rates for businesses shipping a significant number of packages. Lower shipping rates can help reduce the financial burden of offering free shipping.

#5: Absorb Costs as a Marketing Investment

View the cost of free shipping as an investment in marketing and customer acquisition. You can attract more customers, boost sales, and potentially generate repeat business by providing a desirable incentive. Analyze the long-term benefits and returns from increased customer loyalty and satisfaction.

#6: Supplier or Partner Support

Collaborate with your suppliers or manufacturers to negotiate better shipping terms. They may be able to offer discounted rates or even cover the shipping costs themselves. Exploring partnerships can help alleviate the financial burden while strengthening relationships within your supply chain.

#7: Identify High-Margin Products

Analyze your product catalog and identify items with higher profit margins. Focus on promoting and offering free shipping on these products. The higher margins on these items can offset their shipping costs.

#8: Limited-time Promotions

Offer free shipping as a limited-time promotion: Instead of offering free shipping indefinitely, consider running time-limited promotions. This creates a sense of urgency and encourages customers to make purchases within the promotional period. By periodically offering free shipping, you can manage the costs more effectively.

Share the Cost with Customers. Alternatively, you can partially subsidize the shipping costs by charging customers a reduced shipping fee while absorbing the remaining expense. This approach allows you to balance covering some shipping costs and offering customers a more affordable shipping option.

Remember to regularly monitor and analyze the financial impact of your free shipping strategy. Continually evaluate the effectiveness of different approaches and adjust your methods based on your business’s needs, profitability goals, and customer expectations.

The Top Three Apps for Shopify Free Shipping

Three apps come to mind when thinking about making free shipping on Shopify. These apps allow you to create free shipping Shopify easily and effectively:

#1: PickyStory

Utilize PickyStory, a powerful tool, to generate increased revenue through strategically placed bundles and upsell offers throughout your customers’ journey. With PickyStory, you can craft personalized offers tailored to convert more visitors into buyers. Take advantage of their AI-driven algorithm to automate product offers or create your own unique product combinations. PickyStory’s comprehensive conversion platform offers a range of features, including BOGO (Buy One Get One), free gifts, quantity breaks, bundle builders, tiered discounts, frequently bought-together recommendations, popups, cart rewards, and much more.

PickyStory
Source: https://apps.shopify.com/product-kits-bundles-pickystory

Here’s why we love PickyStory to enable free shipping Shopify:

#2: Free Shipping Bear

Encourage increased customer spending with the help of Free Shipping Bear, a convenient tool for highlighting free shipping offers. This app simplifies the process of setting cart value goals, ensuring customers remain engaged and motivated to spend more. With support for multiple cart goals based on country, it takes just 5 minutes to set up and start driving additional sales in your store. You can keep customers engaged and motivated to reach the cart value goal by displaying their progress as they add items to their carts. Ultimately, this serves as a powerful incentive for customers to complete their purchases once the goal has been achieved.

Free Shipping Bear
Source: https://apps.shopify.com/free-shipping-bar-by-bear

Here’s why we love this great app to enable free shipping Shopify:

#3: Essential Free Shipping Upsell

With Essential Free Shipping Upsell, you can maximize your sales and AOV with the flexibility of setting up an unlimited number of unique free shipping bars. Tailor your approach by selecting from various cart value goals to inspire your customers to add more items to their carts. Whether it’s offering free shipping, a discount code, or any other enticing incentive, the choice is yours. Our Essential Free Shipping progress bar goes beyond the basics, featuring integrated product page upselling and cross-selling capabilities and cart upselling and cross-selling functionality. Elevate your AOV further by incorporating a product upsell into your free shipping progress bar, driving additional revenue and customer satisfaction.

Essential Free Shipping Upsell
Source: https://apps.shopify.com/essential-order-value-booster

Here’s why we love this great app to enable free shipping Shopify:

Why Is PickyStory Your Best Option for Shopify Free Shipping

PickyStory is your ultimate choice for Shopify free shipping due to its comprehensive features and user-friendly interface. With PickyStory, you can effortlessly create revenue-boosting bundles and upsell offers strategically placed at key customer touchpoints. The platform offers personalized and AI-driven automated product offers, allowing you to convert more visitors into buyers. Moreover, PickyStory’s complete conversion platform includes a wide array of powerful tools such as BOGO, free gifts, quantity breaks, bundle builders, tiered discounts, frequently bought-together recommendations, popups, cart rewards, and more. With its intuitive setup and extensive capabilities, PickyStory empowers you to drive sales, increase customer satisfaction, and enhance your overall Shopify free shipping strategy.

How to Create Free Shipping Shopify Using PickyStory

To create free shipping in Shopify using PickyStory, follow these steps:

#1: Install PickyStory

#2: Set up Free Shipping Bar

#3: Configure the Free Shipping Offer

#4: Customize Incentives

#5: Upsell and Cross-Sell Integration

#6: Save and Activate

#7: Monitor and Optimize

With these steps, you can effectively create a free shipping offer in Shopify using PickyStory. The platform’s user-friendly interface and advanced features enable you to customize your free shipping bar, integrate upselling opportunities, and track the impact on your sales and customer engagement.

Free Shipping Shopify Discounts with PickyStory

Free Shipping Shopify Discount with PickyStory allows you to create enticing offers that combine free shipping with discounts to boost sales and enhance the shopping experience on your Shopify store. Here’s a detailed explanation of how to set up and leverage this feature:

#1: Install PickyStory

#2: Access Free Shipping Discount

#3: Create a New Discount

#4: Configure Discount Settings

#5: Customize the Discount Bar

#6: Display Options

Decide where and when the free shipping discount bar will appear on your website. Options include displaying it on specific pages, at specific times, or based on customer behavior.

#7: Save and Activate

Top Five Tips for Shopify Free Shipping

Let’s take a look at the top five tips for Shopify free shipping you don’t want to miss:

#1: Set Minimum Order Value

One effective approach is to set a minimum order value to qualify for free shipping. Analyze your average order value and set a threshold that encourages customers to add more items to their carts. This helps you cover the shipping costs while increasing the overall value of each order. For example, you can offer free shipping over $100 in your Shopify store. This type of tactic can work very well with virtually any product.

#2: Negotiate Shipping Rates

Reach out to shipping carriers to negotiate better rates based on your shipping volume. By securing discounted shipping rates, you can offset the cost of providing free shipping to your customers. Take advantage of any partnerships or programs available to online retailers to access more favorable shipping rates.

#3: Product Bundles and Upsells

Encourage customers to spend more by offering product bundles or upsells. By combining related products into attractive bundles or suggesting complementary items during the checkout process, you can increase the average order value and make it easier to absorb the shipping costs.

#4: Strategic Pricing

Adjust your product prices to include the cost of shipping. You can slightly increase the prices of your products to cover the shipping expenses. However, it’s essential to strike a balance to remain competitive and ensure that the overall pricing still aligns with customer expectations.

#5: Limited-Time Promotions

Create a sense of urgency and incentivize customers by running limited-time promotions for free shipping. This strategy encourages customers to complete their purchases within a specific timeframe, boosting sales and driving conversions. Consider aligning these promotions with peak shopping seasons or holidays to maximize their impact.

Conclusion for How to Offer Free Shipping on Shopify

Regarding discounts, bundles, special promotions, and free shipping deals, PickyStory is the ultimate choice. With its powerful features and versatile capabilities, PickyStory can take your e-commerce site to the next level. Whether you want to entice customers with compelling discounts, create attractive product bundles, or implement engaging promotions, PickyStory has got you covered. The platform’s user-friendly interface and comprehensive toolkit make setting up and managing these strategies easy.

Elevate your online store’s performance and drive customer satisfaction by adding PickyStory to your arsenal of marketing tools. Discover the immense potential for increased sales, customer loyalty, and business growth with PickyStory as your trusted companion.

 

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