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How to Offer Free Shipping for Your Ecommerce Business with a Simple Tool

Free shipping is a powerful incentive for customers, drastically reducing cart abandonment rates and drawing more business to your ecommerce store. However, the perceived cost can be intimidating, leaving many store managers unsure where to start. Fortunately, you don’t have to navigate this alone. Shopify offers a Free Shipping Calculator that guides you in crafting smart free shipping offers tailored to your store’s budget, making shipping more manageable and cost-effective.

Why Free Shipping Matters for Ecommerce

Free shipping is a compelling offer that everyone loves, especially during online shopping. High shipping costs often surprise customers at checkout, leading them to abandon their carts. Offering free shipping can eliminate this hurdle, creating a smoother and more enjoyable shopping experience. It shows customers that you value them, fostering trust and encouraging repeat business.

Studies have shown that free shipping can increase order sizes and boost sales. Even small businesses can adopt this strategy without incurring excessive costs. By starting with lightweight or popular products and using tools like the Shopify Free Shipping Calculator, you can devise a scheme that suits your business needs and scales your online growth effectively.

The Free Tool That Can Help You

Shopify’s Free Shipping Calculator is designed for online store operators, helping you craft wise shipping offers. You don’t need to be a Shopify user to access this tool. It’s user-friendly, requiring no sign-up or registration. Simply visit the page, input a few basic details, and get tailored recommendations for your free shipping strategy.

Here’s what the tool does:

Search “Shopify free shipping calculator” to find it. Let’s explore how to apply it effectively.

Step-by-Step: How to Use the Tool

Here’s a straightforward guide to using the Free Shipping Calculator tool:

Step 1: Know Your Current AOV

AOV, or Average Order Value, indicates the average amount a consumer spends per order. Calculate this by dividing your total sales by the number of orders.

Example: If most customers spend around $30, your AOV is $30. This figure is crucial for designing your free delivery offer.

Step 2: Set Your Target AOV

Decide how much more you want your customers to spend. This is your target AOV, guiding you to set a realistic goal for your business.

Example: Aim for a $50 AOV instead of $30. This slight increase helps cover the cost of free shipping.

Step 3: Add the Numbers to the Tool

Visit the Free Shipping Calculator page. Enter your current and target AOV in the tool, and click “Calculate.” The tool will recommend an optimal free shipping threshold.

Example: If your target AOV is $50 and your actual AOV is $30, the tool might suggest free shipping for orders over $45.

Step 4: Apply This Threshold to Your Store

Adjust your store’s free delivery policies based on the tool’s advice to encourage larger orders and increase offer appeal among potential clients.

Example: Offer free shipping on orders over $50.

Tips to Make Free Shipping Work for You

Here are some practical tips to offer free shipping without compromising your store’s profits:

Conclusion

Free delivery is a strategic tool for expanding your online store, boosting sales, and enhancing customer satisfaction. With a well-planned approach, you can offer it without affecting your bottom line. Shopify’s Free Shipping Calculator simplifies this process, guiding you through every step and helping you set the perfect free shipping threshold. Even if you’re not using Shopify, this tool is invaluable. Combine it with strategies like minimum spend limits or slight price adjustments for maximum impact. Use this free tool today to boost your ecommerce sales and grow your store efficiently.

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