Why Free Shipping Outperforms Product Discounts
In the world of eCommerce, shipping costs are one of the biggest barriers to online purchases. This is particularly true for wineries, where high shipping fees can deter customers and lead to abandoned carts. Studies show that 48% of consumers cite unexpected costs, like shipping, as the primary reason for leaving items behind. Furthermore, 90% of shoppers say they’d shop online more frequently if free shipping were available, and 24% are even willing to spend more to qualify for it.
While product discounts can attract buyers, free shipping has proven to be even more effective. By addressing shipping concerns with strategic discounts or free shipping offers, wineries can significantly increase sales, reduce cart abandonment, and boost average order value (AOV).
Benefits of Free Shipping
Higher Conversion Rates
Shipping costs are the #1 reason for cart abandonment. Offering free shipping directly addresses this issue, encouraging customers to complete their purchases.Increased AOV
Free shipping thresholds—like offering free shipping on orders of 12 bottles—encourage customers to add more items to their cart. This strategy not only offsets shipping costs but also drives up your overall sales volume.Preserving Brand Value
In the wine industry, where exclusivity and quality are central to customer expectations, product discounts can devalue your brand. Free shipping avoids this issue while providing a compelling incentive for customers.
Strategies for Wineries
Exclusive Offers for Club Members
Reward loyalty by offering club members free shipping. This not only enhances member satisfaction but also encourages purchases outside club shipments for your most loyal fans.
Bake Shipping Costs into Product Pricing
Incorporate shipping costs into your bottle prices to offset expenses. Let’s say your carrier rate for 6 bottles to your State is $40 and for 12 bottles is $55. Your cost per bottle is $6.67 for a 6 bottle shipment and $4.58 for a 12 bottle shipment. You want to experiment with a $4 to $6 increase in bottle price and test the efficacy of offering free shipping at 6 bottles vs at 12 bottles. This approach maintains profitability while aligning with customer preferences.Threshold-Based Free Shipping
Set free shipping thresholds to incentivize larger purchases. For example: $10 Shipping for orders of 6 bottles or free shipping for orders of 12 bottles. This approach not only encourages larger orders but also aligns with packaging efficiencies, as shipping wine in multiples of six optimizes freight costs. Be sure to set up Cart Carrots to let customers know about free shipping above certain thresholds. Localized Free Shipping
Begin by offering free shipping to just your home state or neighboring states, where shipping costs are lower. This strategy allows you to test free shipping’s effectiveness without incurring the higher costs of shipping long distances.Short-Term Free Shipping Promotions
Create urgency and drive sales with limited-time free shipping offers. For example, promote a free shipping code valid for 3-5 days through your website, social media, and email list. Use these promotions to target customers who have been hesitant to make a purchase, boosting both short-term sales and customer acquisition.
Regulatory Considerations
Be aware that some states have regulations prohibiting free shipping on alcohol. In such cases, offering $1 shipping can be a compliant alternative. Always consult your legal team to navigate these regulations appropriately.
Final Thoughts
Free shipping isn’t just a nice-to-have—it’s a game-changing strategy for wineries looking to thrive online. By reducing cart abandonment, increasing AOV, and driving overall sales, free shipping helps wineries address one of the most significant barriers to online purchases.
By carefully calculating and implementing these strategies, wineries can turn the challenge of shipping costs into an opportunity for growth and increased profitability.
