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Free Shipping an E-Commerce Must-Have

Posted on 1.11.2009


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:

  1. Free shipping is becoming commonplace and highly satisfies shoppers when available. Of holiday shoppers, 68% recall seeing an offer for free shipping this year.
  2. 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.
  3. 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.
  4. Free shipping helps online retailers beat out their competitors. Sixty percent said free shipping influenced which retailer to choose when purchasing.
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