No matter what the item is, human beings tend to unevenly give higher value to the item with the price tag of $0. Have you ever waited in line at a meeting to get a free gift? You won’t go to the store to buy that company’s brand T-shirts. But free Ramen? Join! Buy one for free, buy a prabucino$ Buy 50 free handbags? We like free. period But why do we love them so much? And what impact does this have on the decisions made by online stores? The psychology behind zero price effect consumers’ purchase decision is not entirely black and white, but the word \
On the contrary, for free products or services, people usually don’t deduct any fees from the offer. On the contrary, they think this is much higher. And this is essentially a zero price effect. There is something in our minds that makes us want valuable goods, services or goods for nothing. It makes us special, just as our loyalty to a particular brand or just being a good person is compensated. \
There is free delivery notice on the ceiling of Dvo service. If you own a woocommerce store, you can display the remaining amount required for customers to qualify for free delivery in the free delivery counter expansion plan so that customers can easily use it. It is worth noting that nearly 70% of online shopping carts are discarded, mainly due to unexpected costs. In many cases, these costs are related to freight. To say this, free delivery is not for everyone. Moreover, as long as we do it well in advance, the most loyal customers should be around no matter what happens.
There is no delivery strategy for all situations. There is no single strategy to guide all online businesses on how to configure delivery. It is very important to have an e-commerce implementation strategy suitable for you. This may or may not include free shipping. Depending on the order size, delivery location or customer loyalty, it may include free delivery and paid delivery. Let’s take a look at the advantages and disadvantages of free delivery, the types of business we can enjoy, and how to make the right delivery strategy. Offering something for free will affect the customer’s behavior. Customers like to think they get a lot. Therefore, the distribution cost is usually included in the product price, but only seeing the word \
Let’s look at two simple scenarios. First, your site sells items for $32 and charges $6 for shipping. The second is to sell the same item for $38 and provide free delivery. In both cases, the customer pays the same price, but which do you think to choose? Of course, it depends on the customer, but if you add the zero price effect, it is expected that more consumers will choose the second option. Not all enterprises can deliver goods 100% free of charge. Zero price effect can change the pattern of some businesses, but it is not a strategy applicable to all businesses. Profits should be realistic. For example, if the product sells for $5 and the freight is $6, a \
You can do this without charging $11 for the product. On the contrary, most consumers are reluctant to pay $6 to deliver $5 products.
To solve this problem, you can meet the customer in the middle. Maybe that means charging $8 for the product and paying the remaining $3 directly for shipping. Profit still depends on factors such as packaging and handling fees, but this will bring benefits and still provide \
Your distribution strategy must be suitable for your business. No matter how much you emphasize the importance of a distribution strategy suitable for your business, you can’t go too far. Yes, free delivery is very popular and people like it, but if you go bankrupt, happy customers will not help your business. Geekwire analysis shows that Amazon lost $7.2 billion in 2016. But Amazon continues to offer new customers that surpass its competitors. Although smaller than Amazon, in order to introduce the brand to new customers, you may take a similar approach, listing specific products under cost. This is called the loss bearer strategy. It attracts visitors and expects them to add other profitable items to the shopping cart.
From Amazon’s scale, this is impossible, but in the competitive market, this may be an effective strategy. Another competitive strategy is to keep the cheapest goods unchanged. If you sell the same products as multiple competitors, advertisements in Google shopping may appear next to competitors. In this case, it is recommended to set the lowest price so that potential customers can click on your ad instead of someone else’s ad. You can then add freight at settlement. On the contrary, famous brands will reduce the cognitive value of products, so you may not want to reduce the cost of products. On the contrary, free distribution is a good bonus to improve the conversion rate. In the eyes of consumers, low-cost distribution has nothing to do with the quality of the goods themselves.
I repeat, free delivery is great. But not always the right answer. If free delivery is provided, an appropriate balance must be found between the conversion strategy and the actual benefits. Do your homework, know the numbers and understand the transportation cost of each item in the inventory list. Then formulate the distribution strategy to satisfy customers and maintain healthy benefits. Matters that may affect the distribution cost include: distribution object, distribution method, whether the goods are easy to be damaged, etc. In addition, consider the time required to pack the product and how to pay for manual labor. You don’t have to deliver 100% free for all single items.
In many cases, free delivery is a very effective sales strategy only at a specific time or under specific conditions. For example, if a customer needs to buy a $250 product to qualify for free delivery, they can be guided to add more products to the shopping cart to meet the minimum amount. However, if at least $250 cannot be met, a fee must be paid. I’m winwin I repeat, if we want this to be a truly effective strategy, we must consider profits. The freight may vary greatly due to weight, size, location and other factors, so please ensure the accurate value. audience
