Shipping strategy: is free delivery really necessary?
Shipping is the number one reason carts get abandoned. The maths behind free delivery and the alternatives worth considering.
In the customer's mind, shipping is part of the product. The difference between "the item costs 90" and "the item costs 90 plus 20 shipping" is far bigger than 20.
The maths of free shipping
Free shipping isn't actually free; its cost comes out of either your margin or your product price.
There are three options:
1. Build it into the price. You write 110 instead of 90 + 20. The customer sees "free shipping" and you don't lose money. If competitors show shipping separately, your price risks looking expensive.
2. Set a threshold. "Free shipping over 100" is the most common and most balanced approach. It raises average basket size and protects you on small orders.
How do you set the threshold? Put it about 25-30% above your current average basket. If your average is 80, the threshold should be around 100 — reachable, but requiring a little effort.
3. Don't offer it at all. This can work if your product is unusual and has no alternative. For most stores it's a competitive disadvantage.
Remind them in the cart
If you've set a threshold, show this in the cart: "Add 15 more for free shipping." That single sentence measurably raises average basket size.
State the delivery time clearly
"Will be dispatched" is vague. "At your door in 2-4 working days" is clear. Customers don't need an exact date; they need a range.
Keep the promise you make. Saying three days and delivering in five is worse than saying five from the start.
Tracking
Send the tracking number automatically when the order ships. Without it the customer writes to you; every "where is my parcel" message is a sign of work that could have been automated.
Returns
Put your return terms on the product page, not only in the terms document. "Free returns within 14 days" is one of the strongest phrases for pushing a hesitant customer into buying.
Who pays for return shipping? The decision is yours, but be explicit. Ambiguity costs you more customers than returns do.
- #e-commerce
- #shipping
- #delivery
