Humans tend to put incomparable and high value on the price of zero dollars, regardless of whether What are these things. Have you ever lined up at the meeting waiting for free gifts? You will not go to the store to buy the brand’s brand T -shirt. But what if it is free? Sign up for me! Buy one get one star Ice Le? Can you get a handbag?
We like free gifts. period. But why do we love them so? How should they affect your decisions in online stores?
Zero -price effect
Although the psychology behind the consumer’s purchase decision is not completely black or white, the word \”free\” is indeed popular. This may be related to the zero price effect. When consumers face selection (or do not buy anything) between several products or services, they usually choose one of the largest difference in cost and benefits.
On the other hand, when it comes to free products or services, people usually do not minus the self -evident costs from the income. On the contrary, they think the income is much higher. In essence, this is the zero price effect.
something in our brain makes us want valuable goods, services or products. It makes us feel special -just like we get rewards, whether it is because of our loyalty to a brand or just because we are a good person.
Zero Price Freight
Okay, we fabricated. \”Zero Price Freight\” is actually not , but free delivery is. Thanks to companies like Amazon, this has become the norm. According to a survey of Shippo, 93% of shoppers will take action to obtain its qualifications -if you think about it, this is already a lot. This usually means that they will add more products to the shopping cart, thereby converting to more sales.
DVO SUSPENSION has a free delivery notice above its title
If you have a WooCommerce store, you can let the free delivery for free delivery The container expansion program shows the remaining amount required for their free delivery qualifications to facilitate your customers.
It is also worth noting that nearly 70% of online shopping carts were abandoned, mainly due to accident costs. In many cases, these costs are related to freight. Having said that, free delivery is not suitable for everyone. Moreover, as long as you can prepare in advance, your most loyal customers should stay anyway.
There is no universal transportation strategy
No single strategy can specify how all online companies should build their transportation. It is the key to formulate the correct e -commerce performance strategy for
you
. Maybe this involves free delivery, maybe it does not involve. Perhaps it includes a combination of free delivery and payment delivery, depending on the size, delivery location or customer loyalty. Let’s take a look at some of the advantages and disadvantages of free delivery, which types of enterprises can benefit from it, and how to formulate the correct delivery strategy:
Free provision will affect customer behavior
]
Customers like to think they have got a lot. Therefore, even if the transportation cost is usually included in the price of the product, it will only have a profound impact on their purchase decisions as only to see the word \”free\”.
Let us check the two simple scenes. First of all, you sell a product on your website for $ 32 and charge $ 6 of freight. Second, you sell the same products for $ 38 and provide free delivery services. In these two cases, customers pay the same price, but which one do you think they will choose? Of course, this depends on customers, but if the zero price effect is applied here, it seems that more consumers will choose the second choice.
Not every company can afford 100% time to provide free delivery services
Although the zero price effect may change the rules of some companies, it is not suitable for it to apply to
All
corporate strategy. You need to remain realistic about your profits. For example, if you sell the product at a price of $ 5 and the freight is $ 6, then you may not be able to get rid of the fee of $ 11 for the product so that you can provide \”free\” delivery service. On the other hand, most consumers don’t want to spend $ 6 to transport $ 5 products.
In order to solve this problem, you can meet your customers in the middle. Perhaps this means that you charge $ 8 to the product and pay the remaining $ 3 freight yourself. Your profit margin will still depend on factors such as packaging and processing costs, but this will make you organicWill make money and still provide \”free\” delivery services. Alternatively, you can charge $ 8 for the product, and then list the freight to $ 3. This may be still
more attractive to your customers than paying $ 6 at a price of $ 5 at the original price of $ 5.
Another way to mix options is to let your customers choose. Maybe you provide free land transportation and paid upgrades to speed up delivery. Alternatively, provide flexible table freight, and define multiple freight according to the location, price, weight, transportation category or number of items. This is your business, you have a choice.
Your transportation strategy should be meaningful to your business
To
The importance of your
company to formulate the correct transportation strategy. Essence Yes, it is very popular to provide free delivery services and people like it, but if you go bankrupt, those happy customers will not benefit your business.
According to Geekwire’s analysis, Amazon’s freight in 2016 was as high as $ 7.2 billion. But they continue to provide services in order to defeat competitors and get new customers.
Although the scale may be smaller than Amazon, you may adopt a similar method -list certain products as products lower than costs in order to introduce your brand to new customers. This is called a loss leader strategy. You can attract a large number of visitors in it, hoping that they will add other favorable products to the shopping cart.
You may not be able to do this at the scale of Amazon, but it can become an effective strategy in a fierce competitive market.
Another competitive strategy is to purchase the lowest price at the face value. If you sell the same products as multiple competitors, your advertisement may appear next to them, such as Google Shopping. In this case, the lowest price may be better, so potential customers will click on your ads instead of other people’s ads. You can then add freight at the checkout.
On the other hand, luxury brands may not want to reduce product costs because this will reduce the sense of perception of the product Essence Instead, free delivery is a good reward to increase the conversion rate. In the minds of consumers, cheap freight is not related to the quality of the product itself. Similarly, free delivery is great. But this is not
always
the correct answer. If you do provide free delivery services, you need to be between the conversion strategy and the actual bottom lineFind the appropriate balance point.
Do your homework, know your number Find the freight of each product on the inventory list. Then, formulate a transportation strategy so that you continue to obtain considerable profits while maintaining customer satisfaction.
The factors that may affect your transportation costs include the items, transportation methods you want to transport, and whether your items are easy to rot. In addition, please consider how much time it takes for packaging products and how to pay for physical labor. You don’t have to provide 100% free delivery service for each product.
A lot Very effective sales strategy. For example, if customers must purchase $ 250 products to get free delivery, this may encourage them to add more to the minimum requirements in the shopping cart. However, if they do not reach a minimum of $ 250, they must pay. This is a win -win situation. Similarly, you must consider your profits to make it a truly effective strategy. Keep in mind that the transportation cost may be very different due to factors such as weight, size and position, so please handle your numbers with caution. In addition, you can always adjust your transportation strategy at any time according to the response of the audience. You are the boss. Try different strategies. You can also try to provide free delivery services at a specific time of a year, such as Black Friday or Labor Day.
Finally, make sure you get the best price in terms of transportation costs. This may require some goods to be compared, but this will be worth spending time because you will be able to pass your savings to your customers in the form of free or low -cost transportation. Considering extended programs like WooCommerce Shipping, it can provide you with huge discounts on USPS and DHL freight.
Finding the best strategy is the best strategy \u0026 nbsp; [ 123] In summary, we know that \”free delivery\” is actually not
free. Some people must pay for it.
So, what is actually better -free delivery or lower price? This question really has no specific answer. In the end, finding a proper balance between the most suitable business and satisfying your customers is your successful golden ticket. The great thing about being a business owner is that you can be the master!
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