One of the reasons why online orders become costly is the addition of shipping fees. The total could be way higher than expected. The amount also piles up if the customer is far from the origin of the package. As a business owner, the addition of these shipping fees could be detrimental to the success of your business. You will turn off potential customers. Therefore, waiving these fees could be worth it. Sure, it will be a loss for your business, but it’s still worth doing.
You can entice more customers
People prefer patronising businesses that are willing to sacrifice profits to help customers. Waiving shipping fees is one way to show that you care. It makes your business more attractive. You can even compete with bigger businesses because you’re offering something they can’t.
You will still have a considerable net profit
You might incur losses by shouldering the shipping fees, but you will still have more profits due to the number of orders. Lessening the overhead expenses could help increase net profit, but having plenty of customers is even better.
You can get an excellent delivery deal
If you want to have lower shipping costs, you can partner with delivery companies. Sign a long-term deal and ask for a discount. The delivery companies will agree to your request since you decided to have a long-term partnership. If you have a lower shipping expense, you won’t mind paying for it. Customers don’t need to worry about paying more.
Short distance deliveries are almost free
If you send packages to nearby areas, the shipping fees are almost negligible. It’s even better if you send several packages at once. Since most of your target audiences are locals, this is good news for them.
Entice people to buy more
You don’t need to waive the shipping fees for all packages. You can start with a discounted price and move towards entirely removing the shipping fees if the customers buy more. It’s also an excellent marketing strategy.
Build a loyal base
When you already have a loyal base with the aid of this strategy, it’s easier for the company to soar higher. If there are new product releases, you can expect your loyal customers to be first in line. They already have a reason to choose you, and they won’t mind buying again.
You can also throw in additional deals such as a points system where customers get more points for every purchase. The extra savings earned by your customers will make them want more from your business.
Make sure you know the right steps to send a parcel now and other packages to guarantee that they arrive intact. Otherwise, your customers will feel terrible. They got free shipping, but their order didn’t arrive the way they expected. Choose a quality delivery company that can offer cheap services without sacrificing quality. Timely arrival should also be a consideration. Change your partner if you didn’t feel satisfied with the services.