Free shipping is a valuable acquisition and retention tool for first-time
visitors. But what impact does it have on already-loyal customers decision to
purchase or recommend a website? A report published today from ForeSee
results indicates that high shipping costs drive people to shop in stores versus
free shipping that drives people to shop online.
Key findings highlighted in the Free Shipping report include:
- Free shipping is becoming commonplace and highly satisfies shoppers when
available. Of holiday shoppers, 68% recall seeing an offer for free shipping this
- Free shipping can be an effective acquisition tool. Free shipping results in
positive bottom line impact for the e-retailer, surprisingly even when
restrictions are put on free shipping, such as $100 minimum orders.
- Shipping costs affect whether people choose to buy online or offline. Of
all shoppers, 18% said avoiding shipping costs is the main reason they choose to buy
in a store, and 33% said free shipping encouraged online buying.
- Free shipping helps online retailers beat out their competitors. Sixty percent said
free shipping influenced which retailer to choose when purchasing.