Techniques to spice up gross sales and AOV

If prospects need something from their delivery, they need it to be free. DigitalCommerce 360’s 2024 survey on delivery and achievement discovered {that a} whopping 81.34% of customers think about free delivery their high precedence in terms of order supply. Does your small business have the identical priorities?

With cautious consideration, you possibly can present free delivery to match your prospects’ values, whereas retaining a wholesome revenue margin. It simply takes the appropriate instruments, methods, and companions.

That’s why we’re right here. On this free delivery ecommerce information, we’ll clarify the advantages of free delivery, talk about whether or not it’s proper for your small business, and overview every thing you have to implement it.

Free delivery is an effective way to please prospects, however it may be pleasant in your firm’s stakeholders, too. That’s as a result of means that you can:

Sustain with the competitors

Free delivery is now not a groundbreaking differentiator in most industries. In reality, it’s pretty ubiquitous. The vast majority of on-line retailers — 74% — provide some type of free delivery. A few of them have a store-wide free delivery coverage, whereas others present it beneath sure situations.

Whatever the mannequin, free delivery’s reputation amongst on-line shops means many shoppers merely count on it. Should you’re charging for delivery, you’re ranging from behind and must discover one other method to achieve a aggressive benefit.

Drive gross sales and common order worth (AOV)

A standard query about free delivery on-line is, “Does free delivery enhance gross sales?” The reply is a agency “sure.” Digital Commerce 360’s knowledge from earlier reveals that solely 44% of customers surveyed paid for delivery for even a single order within the final six months. Throughout the identical time interval, practically 73% accomplished a transaction with free delivery. 

So in case your model desires to transform extra prospects, free delivery is a stable method to do it.

As a bonus, free delivery will increase common order worth (AOV), too, due to order thresholds. Almost half of consumers will meet a minimal buy requirement simply to get free delivery, which means they’ll spend extra to qualify.

Enhance worth notion

Purchasing at a retailer with free delivery feels higher for patrons. All of it comes right down to psychology. 

Based on the zero worth impact, prospects understand the worth of a free perk to be greater than it’s in actuality. In different phrases, decreasing $3 in delivery charges to zero may have a stronger affect than taking $5 off a $99 merchandise’s worth.

“Ought to I provide free delivery?” Solely you possibly can reply this query in your retailer. Whereas free delivery affords the entire above advantages, your retailer’s operations will decide if one other technique may very well be higher for you. Take into consideration components like:

• Your revenue margins with free delivery: Providing free delivery signifies that you’ll need to cowl it in your prospects. Do you’ve a plan in place to make up for these further delivery bills? We’ll enable you work by way of this query within the subsequent part. Should you’re utilizing WooCommerce Delivery, you possibly can rapidly see your earlier delivery bills by going to Analytics → Delivery Labels out of your dashboard. You’ll be able to see income from delivery charges charged to prospects by going to Analytics → Income. Use the knowledge from these reviews to get a practical estimation of how free delivery might affect your backside line. 
• Logistical challenges: Delivery can have totally different prices relying on service, velocity, and placement. Should you ship from a zone removed from most of your prospects, as an example, you’ll have further delivery charges to consider.
• Your stance on eco-friendly delivery: Since free delivery might result in extra orders, it might additionally enhance your contributions to carbon emissions and use of packaging supplies. Look into any sustainable delivery measures you could wish to take to steadiness out your affect, like altering your packaging or offsetting your emissions.
• Buyer expectations in your trade: In some classes — like style or magnificence — free delivery is the norm and could be a decisionmaker for customers. In others, prospects could also be extra versatile. Take a look at what your rivals are providing and think about how your delivery coverage positions your model.
• Common order worth (AOV): In case your present AOV is just too low to assist the added value of delivery, you could wish to introduce a minimal buy threshold (e.g., “Free delivery on orders over $50”) to encourage upsells and protect your margins.
• Return and alternate charges: Free delivery could result in greater return volumes in sure industries, particularly for those who’re providing issues like attire or equipment. Issue within the added value of two-way delivery when evaluating if free delivery makes monetary sense.
• Achievement partnerships and provider reductions: Are you utilizing a third-party logistics (3PL) supplier or delivery software program that provides discounted charges? These partnerships can cut back your delivery prices and make free delivery extra viable. 
• Worldwide vs. home orders: Free delivery could also be possible for home orders however tougher to supply internationally. Contemplate whether or not you wish to restrict free delivery by area or create separate insurance policies for various zones.

Generally, a special tactic will work higher in your retailer than free delivery. One technique to strive is decreasing costs to draw prospects as a substitute.

Should you’d like to supply free delivery however aren’t positive tips on how to deal with the hit to your revenue margins, you’ve choices. You’ll be able to steadiness out the further delivery prices with methods like:

• Outsourcing to a third-party logistics (3PL) enterprise: Relying on the dimensions of your small business and the forms of packages you ship, outsourcing your achievement course of might really prevent cash. 3PLs, companies that care for delivery and achievement for you, can negotiate delivery prices and work from a number of places to cut back costs. Analysis the delivery charges and providers of assorted 3PLs and evaluate them to doing it your self.
• Altering your packaging or packaging course of: The packaging supplies and processes you employ additionally affect your delivery prices. For instance, some types of eco-friendly packaging value lower than conventional choices as a result of they’re lighter. Contemplate how one can get inventive together with your packaging to cut back delivery bills.
• Adjusting your delivery charges: Should you don’t plan on offering free delivery for each order, you possibly can change your method for paid choices to recoup a number of the prices. You may also tweak your pricing for worldwide or expedited delivery. Run the numbers for desk price delivery or flat price delivery — two widespread choices that make costs extra predictable for you and your prospects.
• Growing product costs: You even have the choice to boost your product costs to “construct in” the delivery concerned. This technique’s affect will rely on how a lot you’d want to extend costs, however you possibly can mix it with different techniques so you possibly can increase costs just a bit.

It could actually take some changes to search out the appropriate steadiness in your retailer. 

Although, as we talked about earlier, nearly three-quarters of on-line retailers have free delivery choices, the identical knowledge reveals that solely 20% provide it for every thing they promote. So, you don’t have to supply free delivery on every thing to profit. Strive experimenting with these free delivery promotions:

Present free delivery with a minimal order worth

One of the in style free delivery techniques you’ll see on-line is setting a minimal buy threshold without cost delivery. You’ll find one instance at House of Malt, which affords free delivery to the mainland United Kingdom for orders over £99.

This coverage reveals how one can base your delivery threshold on an order worth that retains revenue margins in verify. Calculate the margins on totally different order values till you discover one the place you possibly can deal with the common delivery value and nonetheless make a revenue.

Your common product worth, in addition to your viewers, may also play a job in that calculation. Since Home of Malt sells whisky, a product with a better worth on common, a better threshold doesn’t really feel misplaced. Take a look at your common order worth and see for those who can persuade extra prospects to fulfill it by matching your minimal buy threshold without cost delivery.

Supply free delivery as a part of a buyer loyalty program

You can too use free delivery as an incentive for glad prospects to hitch your program. There are numerous milestones at which you’ll be able to present free delivery to loyalty program members, like when a buyer:

• Joins this system for the primary time.
• Earns a sure variety of loyalty factors from previous purchases.
• Takes half in your loyalty program for a sure period of time.
• Refers one other buyer to your loyalty program (a grant method to develop future purchases)
• Writes a overview in your retailer or product.

WooCommerce extensions like WooCommerce Factors and Rewards can help you reward glad prospects with factors for purchasing merchandise and finishing sure actions.This can be a nice method to encourage prospects to take any variety of steps in your website. And if you wish to present a reward for actions outdoors of the extension, you possibly can manually add factors to an account. 

Since WooCommerce Factors and Rewards affords reductions as rewards, you possibly can provide a reduction equal to the delivery quantity the client would pay or take factors off of their account in alternate for an unique delivery code.

Promise free return delivery

You additionally wish to take note of your return coverage. Almost half of web shoppers need you to offer free return delivery, with 45% contemplating free delivery again to the shop to be a very powerful side of the return course of.

WooCommerce has a built-in refund function that will help you handle refunds and returns. There are additionally extensions that combine with providers like ShipStation that will help you create free delivery return labels. Take a look at your present return program and search for methods to make return delivery accessible and free utilizing these sorts of instruments.

Run restricted free delivery promotions

Be happy to slim your free delivery scope nonetheless you’d like to fulfill your revenue margin plans. Contemplate limiting your provide to components like:

• Time: Some shops will provide free delivery at occasions when web shoppers are almost definitely to purchase, however competitors is excessive. That is notably true in the course of the holidays. This method can assist you maximize conversions and get a better common order worth throughout crucial occasions.
• Merchandise: When you’ve got merchandise with decrease delivery charges as a result of weight, you possibly can provide free delivery just for these gadgets. Return to your AOV calculation to see if it’s value it to offer free delivery for some merchandise over others as a result of their weight or sturdiness.
• Location: Delivery costs can differ primarily based on journey size, so you could possibly additionally present free delivery to addresses inside a sure distance of your achievement middle. Contemplate including a delivery zones map so prospects have a clear view of why sure orders get free delivery and others don’t.
• Pace: You can too issue delivery velocity into your free delivery deal. Maybe you could possibly provide free commonplace delivery however cost for two-day or precedence.
• Subscriptions: Subscription-based shops usually present free delivery to subscribers, like WooCommerce-powered Common Yums. This mannequin makes it simple to construct the price of delivery into your subscription worth whereas providing a flat worth to prospects.

As you design your free delivery program, remember that you possibly can combine and match the components that go into it. You may provide free delivery for orders over a certain quantity throughout peak seasons, as an example.

Arrange a free retailer pickup program

When you’ve got a brick-and-mortar retailer, it can save you cash for each your retailer and web shoppers with a free native pickup choice. Present this feature at checkout after which notify your buyer when their order is prepared and provides them a time window to come back decide it up. You’ll lower your expenses on delivery supplies and prices whereas offering a extra eco-friendly choice.

WooCommerce comes with all types of built-in options and extensions to configure your free delivery program as you want. Let’s go over 4 alternative ways so as to add free delivery to your retailer primarily based on the mannequin you wish to use.

Bonus tip: Set up high WooCommerce delivery extensions to create a fair higher expertise for you and your prospects. WooCommerce Delivery enables you to purchase delivery labels at a decrease price proper out of your dashboard. In the meantime, the Cargo Monitoring extension means that you can ship cargo monitoring hyperlinks to your prospects.

Arrange and configure free delivery in your retailer 

Your WooCommerce retailer has the choice to offer free delivery for those who have delivery zones arrange. Go into your Settings menu, then comply with these steps:

1. Go to Delivery → Delivery zones, then click on the Edit button on the delivery zone you wish to make eligible without cost delivery.
2. In that delivery zone’s menu, click on the Add delivery technique button close to the underside of the web page.
3. Select Free delivery and provides your delivery technique an applicable identify for patrons to see.
4. Choose the requirement your prospects should meet to obtain free delivery within the Free Delivery Requires dropdown.

WooCommerce helps the preferred free delivery necessities, together with:

• No requirement: Common free delivery to that zone
• A sound free delivery coupon: Free delivery with a coupon you created beneath WooCommerce → Advertising → Coupons
• A minimal order quantity: Free delivery when the client meets a sure order worth

For much more flexibility, it’s also possible to mix a coupon with a minimal order threshold by deciding on A minimal order quantity OR a coupon or A minimal order quantity AND a coupon.

Click on Save adjustments on the backside of your delivery zone’s menu, then repeat for every relevant delivery zone. You’ll be able to select totally different free delivery necessities for every zone to suit your financials.

Create superior guidelines without cost delivery

If you wish to base your free delivery on different components like loyalty program membership or product varieties, the Conditional Delivery and Funds extension has you lined. As its identify implies, it units the situations for ensuring delivery and fee strategies out there to your prospects.

After you put in this extension, you possibly can limit your delivery strategies on a worldwide or per-product foundation. Go to WooCommerce → Settings → Restrictions, then Delivery Strategies to set who can entry free delivery all through your retailer. Once you wish to configure restrictions for only one product, go to Product Information → Restrictions, then decide the restriction sort you need within the Select restriction… dropdown.

In these menus, you possibly can restrict free delivery to sure prospects primarily based on:

• Product sort, class, or delivery class
• Order weight, merchandise amount, or order complete
• Coupon codes
• When somebody purchases a subscription
• Particular person prospects or buyer roles like a loyalty program member

Should you plan on utilizing this extension simply without cost delivery situations, it’s perfect for necessities associated to buyer function, product sort, or order situations. The WooCommerce core free delivery options already assist coupon codes.

Begin a subscription program with free delivery

You’ll be able to arrange a subscription program with free delivery utilizing the WooCommerce Subscriptions extension. This extension can create subscription merchandise, arrange recurring fee strategies, and decide some points of your subscription product’s delivery value.

WooCommerce Subscription’s foremost free delivery function is the One time delivery choice you possibly can select in your subscription product’s settings. With this setting, your buyer will solely pay delivery the primary time they get their subscription. Go to WooCommerce → Merchandise → Edit Product, then Delivery to search out this checkbox.

In any other case, WooCommerce Subscriptions works with both of the above two delivery choices we’ve talked about. For instance, you possibly can set your subscription product to have free delivery utilizing the product-based situations out there by way of the Conditional Delivery and Funds for WooCommerce extension.

Add a free native pickup choice

The built-in options in WooCommerce core additionally embody assist for native pickup. Setup works equally to including free delivery, however you’ll select a pickup choice as a substitute. Let’s go over the steps:

1. Go to Delivery → Delivery zones, then click on the Edit button on the delivery zone you wish to present native pickup for. Right here, you possibly can select a zone that’s near one in all your retail places.
2. In that delivery zone’s menu, click on the Add delivery technique button close to the underside of the web page.
3. Select Native pickup and provides your pickup choice a reputation for patrons to see.

This course of works a bit otherwise for those who use a WooCommerce Blocks-based checkout. Upon getting a Checkout block, you possibly can configure native pickup with these actions:

1. Go to WooCommerce → Settings → Delivery, then navigate to the Native Pickup tab.
2. Click on the Allow native pickup checkbox.
3. (Optionally available) Should you’d like, rename your native pickup choice to a brand new identify prospects can see within the Title field.

Each of those strategies additionally can help you cost for native pickup and decide if the pickup value is taxable for those who resolve to cost for this feature sooner or later.

After you arrange your retailer’s free delivery choices, it’s time to unfold the phrase about them. Promote your free delivery with techniques like:

• On-site alerts: The highest and backside of your web site are widespread locations for patrons to verify for those who provide free delivery. Use the High Bar for WooCommerce extension to create a dynamic high bar for this function. You can too edit your WooCommerce theme to broadcast your free delivery perk.
• Show promoting: Show adverts like Google Adverts allow you to attain an viewers outdoors of your social media following. Make your free delivery the front-and-center advantage of your advert to attract in new prospects.
• Social media: Make a publish on every of your social platforms about your new free delivery provide. Then, hold posts about your free delivery in your common social publish rotation. You can too point out your free delivery once you publish updates about new promotions and gross sales.
• Electronic mail advertising and marketing: Utilizing your favourite e-newsletter platform like Klaviyo, announce your new free delivery perk to your subscribers. Shifting ahead, you possibly can name out your free delivery in a banner in future e-newsletter editions.

Like every other initiative in your ecommerce retailer, free delivery packages work finest once they suit your viewers and enterprise technique. After you launch your free delivery choices, watch your WooCommerce analytics. See in case you have any enhance in AOV, gross sales, or new prospects within the months after you begin providing free delivery. Then, alter your free delivery necessities or mannequin for those who see methods to enhance.

Laura is the product lead for Woo Delivery. When not delivery product updates, she enjoys spending time together with her household in sunny Florida.