Free Shipping Meaning & Examples
Definition
Free shipping is a delivery option where customers do not pay any shipping costs for their order. It can apply to all purchases, orders above a certain threshold, or specific products and promotions.
Good or Bad?
Good, when used strategically to attract more sales and reduce cart abandonment.
Bad, when it significantly reduces profit margins or is offered without considering costs.
Why does it matter?
Because high shipping costs are one of the biggest reasons customers abandon carts.
Offering free shipping can increase average order value and improve overall customer satisfaction.
Common Mistakes
- Offering free shipping without calculating its impact on profitability.
- Not setting a minimum order amount, leading to losses on small orders.
- Hiding the free shipping offer until late in checkout instead of promoting it early.
- Applying free shipping inconsistently, which confuses customers.
How to Improve It?
- Set a free shipping threshold (e.g., orders above $50) to encourage larger purchases.
- Advertise free shipping clearly on product pages and during checkout.
- Include shipping costs in product prices if margins allow.
- Use free shipping as part of promotions or seasonal campaigns.
Recommended Plugin
Free Shipping Over Amount: Amount Left Tracker for WooCommerce by WPFactory.
This plugin motivates customers to increase their cart value by showing how much more they need to spend to unlock free shipping.
Real-World Example
An online cosmetics store offers free shipping for orders over $40. Customers who originally planned to spend $30 often add extra items to qualify, increasing the store’s average order value.
Related Terms
FAQs
Should every store offer free shipping?
Not always. It works best when shipping costs are manageable or when combined with a minimum order threshold.
Does free shipping increase sales?
Yes. Many studies show free shipping boosts conversions and lowers cart abandonment rates.
How can I afford free shipping without losing money?
Set minimum order requirements, raise product prices slightly to cover costs, or negotiate better rates with carriers.
