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How to Manage Challenging Free Shipping Strategy of the Business?



As fast as the trend of shopping has increased rapidly so as the concept of buying things in the best possible lowest prices has also gained pace. People of this particular generation can do anything to buy their needed products/services in low prices. A small twist here is that no compromise on the quality of the product, the product should be just as they wish it to be and the prices also need to be the way they want. Consumers are the ultimate rulers have never been proved this much true as it is being proved in this era. Trend setters are the consumers, challenge providers are the consumers and the price setters are also the consumers. A recently conducted survey has reported that 57% of the consumers have stated that they will not change their habits of spending and buying.

Consumers Have Moved Towards Mobiles:

One major trend shift which up till now has already been accepted and worked on is the increasing interest of consumers in their mobile phones for purchasing matters. People are depending more and more on their mobile devices no matter they want to buy something online or offline. They are relying on all the provided information on internet via mobile devices. Consumers are making the best and utmost use of their mobile phones and similar gadgets. Business world has already accepted this challenge has proved to be working hardly by finding out many ways to serve customers on their mobile devices, just the way they want to be treated.

Easy and everywhere availability of internet all around the world has made it so easy for the consumers to browse through all the products and their prices provided by all the companies competing in a certain industry. This has made it nearly impossible to deceive or convince people on prices set by the businesses as they already have all the information on their hand. If one business is providing certain products on higher prices than its competitors then they will surely be questioned about the reason of their high prices by the consumers. Consumers are becoming well aware by each passing day. Mobile payment services have also made these gadgets a must part in every business’s strategies.

For a reason that people now know how they can use their information in questioning and negotiating with the businesses on their prices, online businesses have also found the way out. That way out is, an increasing use of free shipping strategy by the online prevailing businesses.

The Concept of Free Shipping:

Online businesses have comparatively lesser margins of earning profits than the offline retailing stores. Consumers are always expecting lower prices on business websites and this leads the online businesses to think and make strategies so that they can retain the consumers and the profits both at the same time. Free shipping strategy is one of the widely used and accepted open heartedly by the consumers. Where it is easy for big online business stores to manage free shipping services it is difficult on the other hand for small online businesses. Small online business websites have very low chances or no chances of earning any profit if they go for free shipping, but the difficulty is that people are now demanding free shipping from every single online business regardless of their size.

Free shipping has overall become one major reason of closing the sales with the consumers as almost all of them have thought of buying the product when it’s shipping cost free. It has become one special and prominent marketing strategy now. If it is difficult to manage then there surely are ways how a business can manage it smartly.

Some of the simple techniques are explained below about how a business can properly manage free shipping strategy:

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Study Your Own Industry

Being an online business owner you must have all the information of the industry, its trends, its competitors and the space it has in it. You might be working in a certain industry which will never require a free shipping strategy and worrying about it unnecessarily will make the situation worse. One might have a thought that what kind of industry that can be which will not require free shipping strategy? Well, for most of the B2B online platforms this no free shipping concept can be applied. In this situation all a business needs to focus on is providing just the accurate and appropriate prices for its consumers.

Once you will have a bunch of loyal consumers they will always feel happy and obliged on the negotiated price rates provided by you and will not demand for a free shipping service.

Free Shipping Offered For Few Regions

One other way to cope up with this free shipping challenge is to offer free shipping for some specifically chosen regions and cities while charge an appropriate amount for the remaining. This will somehow lessen the burden on the business as some portion of money earned with non-chosen regions or cities can further be utilized in providing free shipping for the chosen ones. The ones that will be chosen should be the places where it is comparatively cheaper shipping expenses.

Show Delivery Timing

People are becoming reluctant and impatient all at the same time. Your business can have a successful free shipping policy when people are told about the time it will take their shopped products to reach their door steps. The important thing to be kept strongly in mind is that as long as it takes in delivery from your side the more people will get impatient and try some other destination of shopping for the next time. So, make sure to mention the days or time the delivery items will take to reach the buyer and make it a part of your free shipping strategy.

Free Shipping Services after Meeting Certain Conditions

There are certain conditions which can be set earlier and asked the buyer to fulfill them before getting eligible for free shipping service. One of the most widely used conditions is setting up a minimum cost of buying. Unless a buyer is buying something worth that cost or might be higher than it, he/she will not be offered free shipping. This can affect the sales but to make sure it is not making much damage your business can test run this tactic for few days and then it can cancelled if it is highly affecting and decreasing the number of sold products.

Certain categories of goods can also be mentioned and promoted on the website as free shipping goods and let people know that you will not be offering free shipping on other than these selected categories. It is not at all necessary to offer free shipping on everything being sold on the website and every amount or cost of products being sold.



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