What is Free Shipping In eCommerce? How To Offer Free Deliveries in 2024 For Your Online Store in 10 Ways?

June 07, 2022

eCommerce Shipping stores are a common sight in online shopping. Instead of wandering around in physical stores and fighting amongst crowds, fulfillment sellers can sell whatever their products at great convenience from the comfort of their offices or homes. For many merchants, free shipping (also known as free distribution, or free delivery) is an added draw that helps them build customer loyalty and lower shipping costs. However, it’s not just enough to give away the goods; there needs to be a strategy behind putting this offer together. Free deliveries are a marketing strategy for eCommerce fulfillment companies.

In today’s competitive online world, many small businesses plan to offer free shipping or at least find ways to lower shipping costs – but it can be hard to understand how to apply this successfully in a real-world scenario. Warehousing and Fulfillment can be tricky for eCommerce logistics, especially those that rely on warehousing and D2C fulfillment companies. However, there are many benefits of free delivery – from increasing customer retention rates to receiving appreciation from your customers. This article will outline how you can provide free shipping and lower shipping costs to your online customers in 2024.

Table Of Contents
  1. What is Free Shipping in eCommerce? 
  2. Why Should Online Stores Offer Free Shipping?
  3. 10 Different Ways to Provide Free Shipping to eCommerce Customers in 2023
  4. How Do eCommerce Brands Recover the Zero or Lower Shipping Costs?
  5. How Do I Know if Free Shipping is Right for My Online Business?
  6. Free Shipping in eCommerce FAQs (Frequently Asked Questions)

What is Free Shipping in eCommerce? 

Free shipping is a fantastic feature for online shoppers. It allows customers to get their items without paying any extra fees. It can be a great way to attract new customers and make them feel appreciated. Ensure you have accurate shipping information on your website and offer free shipping on qualifying purchases. 

Use promotional codes and discounts to incentivise buyers to make purchases that qualify for free shipping. It will help you reach your MOV requirement faster and increase the number of customers who receive free shipping when they make a purchase, which will enable a higher rate of customer retention and acquisition.

WareIQ – Amazon-prime Like Logistics for Modern Brands in India

WareIQ, an eCommerce fulfillment company, empowers online brands with a superior-tech platform to compete with Amazon like service levels by bringing their average delivery timelines from 5-10 days to 1-2 days.

"WareIQ came to Gynoveda with a full stack fulfillment platform & gave Gynoveda access to a nation wide network of fulfillment centers & last mile & hyperlocal courier partners closer to our customers based out of North East & North India. They made same-day delivery possible for us in metros."
- Vishal Gupta, Founder, Gynoveda

Why Should Online Stores Offer Free Shipping?

Online stores can evaluate both flat rate shipping or standard shipping offered by the 3PL players & then decide which kind of shipping will help them offer free shipping to their online shoppers. Read the blog on flat rate vs standard shipping to understand the differences. Free Deliveries are a great way to attract customers and keep them returning to your online store. Offering free delivery on all orders can help you gain loyal customers and make more sales.

There are many reasons online stores should offer free delivery, but four of the most important ones are listed below:

Helps Increase Your Customer Base 

When you offer free deliveries, you tell customers that you value their business and are willing to go the extra mile to ensure that they’re satisfied with their purchase. It makes customers more likely to return and recommend your store to their friends.

Boosts Your Sales Figures 

If an online retailer has many shipping options, they can better cater to the sizes and needs of their consumers. The availability of these different shipping methods equates to a higher sales rate. In 2017, eCommerce warehousing giant Amazon reported that offering free shipping increased sales by 27%. That’s a massive boost for any online store and it demonstrates just how important free shipping is for attracting customers.

Can Increase Profit Margins 

The shipping charge should be available both on the product page and at checkout to maintain an ongoing cost from product page to checkout. If an extra shipping charge deters a customer, they may abandon their shopping cart. Offering free delivery or at least providing lower shipping costs makes it even cheaper for customers since they don’t have to pay any additional fees associated with shipping. Plus, if you have a lot of regular customers who order large items, free shipping can save them money.

Shows Your Customers That You Care 

Many online stores offer free distribution on orders on a specific retail value to show their customers that they’re valued and appreciated. Offering free delivery is one way to show your customers that you understand the importance of their business.

10 Different Ways to Provide Free Shipping to eCommerce Customers in 2024

There are a few different ways to offer free deliveries by eCommerce fulfillment to customers. Here are some examples:

Use Voucher Codes

If you have voucher codes that you offer your customers, you can include them with orders or offer them as a separate product. This way, customers can get access to lower shipping costs or free shipping without spending extra money on more purchases.

Offer Free Returns

If you offer free returns, you can make it so that customers who return items receive free shipping. This way, customers won’t have to worry about paying for shipping twice – once for the original purchase and again for the return. However, use this policy sparingly if your business incurs the logistics cost.

Provide Free In-Store Pickup

If you have a brick-and-mortar store, you can also offer free in-store pickup for online orders that are above a certain amount. This way, eCommerce customers can take their purchases home without having to pay for shipping.

Offer Exclusive Deals on Free Shipping

Sometimes, it’s beneficial only to offer free delivery on specific items or particular year periods. This way, you can promote your products and keep your customer base loyal by offering exclusive deals with the benefit of free shipping.

Use Social Media to Promote Free Shipping

You can use social media platforms like Facebook and Twitter to promote special deal. This way, you can attract new customers and keep your existing ones happy by offering free shipping on their favourite items.

Offer Minimum Requirements

You can always specify minimum requirements that customers need to meet in order to take advantage of free shipping. This could result in more sales as customers try to reach these minimum requirements which will result in more revenue for the company.

Offer Free Shipping to Certain Locations

You can offer free shipping to certain locations that meet your expectations for the amount of demand and confirmed orders that they yield. It will help to increase demand even further in these areas, while mitigating increases in shipping prices as orders can be shipped in bulk and you can take advantage of large scale discounts offered by shipping companies.

Provide Free Shipping During Specific Seasons

Certain seasons result in more demand and more products sold than others. In order to make your customers happy and not risk your bottom line by being too generous, you can offer free shipping only during seasons that result in a large number of sales for your business.

Suggested Read: Peak Season Shipping

Include the Shipping Fee in the Price of Products

By doing this, you are able to maintain your profit margins and also make customers feel like they are getting a better deal than what they actually are since they assume that they are getting something for free.

Use Memberships or Subscriptions as a Way to Entice Customers

You can entice customers into signing up for memberships or subscriptions by offering perks such as free shipping and ultra-fast delivery. This will help to promote your products as well generate new sales.

How Do eCommerce Brands Recover the Zero or Lower Shipping Costs?

Brands that are not profitable enough to provide shipping free on all products can choose to offer bonuses with purchases so that customers will spend more and qualify for free delivery.

Find Out How to Increase the Price of Your Product.

When you are pricing expensive items, shipping may be more than the cost of the item itself and make the product seem overpriced. However, adding a little to the price of already expensive products might not dissuade customers from buying as it will still be cheaper than paying for shipping.

Add markup to your products to cover the average shipping and logistics costs. It is hard to predict additional orders, so covering shipping might make it plausible for the other charges.

Find Out How to Get Customers to Spend More Gradually

Increase LTV, offer subscriptions and loyalty programs and consider effective email marketing strategies. Customers often need to make a second purchase to cover the cost of acquisition. For example, six will subscribe for a second transaction out of ten customers. If the customer’s next purchase covers their initial expense, then anything after that is a bonus.

Add Bundling or Lower the Spending Threshold to Increase Your AOV

Bundle products together to be able to charge lower shipping costs. Include other benefits, such as buying a membership to the website to get more value and money from the customer’s purchase. Increasing your AOV (average order value) will help you reach new customers and keep old ones coming back for more.

To increase the average order value (AOV), you should bundle products together or pre-kit them, so it’s a single pick and pack process to fulfill an order. For example, Bathorium, a manufacturer of bath frames, allows customers to purchase six for the price of five – this saves shoppers money and increases AOV.

To avoid losing customers, consider raising prices if the cost of free shipping is too high. If you offer low-cost items or no subscription model with a product, you might require customers to have a minimum order quantity(MOQ) to receive free delivery.

How Do I Know if Free Shipping is Right for My Online Business?

Some stores have the flexibility to offer customers free shipping on all products. However, other stores need to offer free distribution as an incentive for customers for specific products. For instance, if your product is expensive, you should test free delivery/shipping out for that product by running a limited-time promotion.

To promote or boost sales, experiment with the minimum spending requirements and time limitations. It will help you customise the campaign to your customer’s needs. Remember, experimentation is critical when it comes to marketing, and you should always keep track of what is working by doubling down on it and stop or remove things that aren’t working well.

Free delivery likely indicates that retail fulfillment is profitable. If you keep purchasing and making returns, there’s always demand for the product and shipping aggregation. Avoid excessive returns by examining the potential impacts and ramifications of your purchase.

If you want to offer free shipping, lower shipping costs or make your entire shipping process more efficient, WareIQ can help. We offer the choice of more than 20 of the largest shipping courier providers in the nation at the most competitive prices to enable you to retain higher profit margins and provide a high quality delivery experience to your customers.

WareIQ is one of India’s leading and fastest-growing full-stack eCommerce fulfillment companies that offer a variety of services from same-day and next-day delivery, shipping badges and RTO Shield, to state of the art technological solutions such as our custom WMS and our intuitive, well-designed app store. We can take care of your brand’s entire fulfillment service requirements and ensure that you and your customers get the best order fulfillment in the country and have a hassle-free experience and raise satisfaction levels to new heights.

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Free Shipping in eCommerce FAQs (Frequently Asked Questions)

Supercharge your fulfilment with WareIQ now, contact our team.

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Process of IEC Code Verification The verification of an Importer Exporter Code (IEC) is a straightforward process designed to ensure the authenticity and accuracy of the IEC details for businesses engaged in international trade. Here's a step-by-step overview of how the IEC code verification process typically works: 1. Online Verification through DGFT Portal The Directorate General of Foreign Trade (DGFT) provides an online platform where individuals and businesses can verify IEC codes. This is the most direct method for verification, requiring you to visit the DGFT's official website. 2. Entering IEC Details On the DGFT portal, there is a specific section for IEC-related services, including IEC code verification. Users are required to input the 10-digit IEC number in the designated field. Additional details, such as the name of the company or its PAN, may also be required for verification purposes. 3. Submission and Results After entering the necessary information, the verification request is submitted through the portal. The system then checks the provided IEC details against the DGFT’s database. If the information matches, the portal displays the IEC's status and details, confirming its authenticity. 4. Physical Verification (if necessary) In some cases, businesses or regulatory bodies may conduct physical verification by requesting a copy of the IEC certificate directly from the company for cross-verification with the DGFT's records. This is usually done for due diligence in business transactions or regulatory compliance checks. 5. Use in Customs and Financial Transactions Customs authorities and financial institutions often have their internal processes for IEC verification, especially during customs clearance and foreign currency transactions. They access the DGFT database directly or use the details provided by businesses to verify the IEC’s validity. Is e-SANCHIT Safe in India? e-SANCHIT, short for Electronic Storage and Computerised Handling of Indirect Tax documents, is a platform introduced by Indian Customs to facilitate paperless processing and uploading of supporting documents and to promote ease of doing business and transparency in the import-export process. Regarding its safety, e-SANCHIT is designed with robust security measures to protect the confidentiality and integrity of the data submitted by users. Here are key points highlighting the safety aspects of e-SANCHIT in India: 1. Government-Backed Platform As an initiative by the Indian Customs, part of the Central Board of Indirect Taxes and Customs (CBIC), e-SANCHIT is a government-backed platform. This implies adherence to stringent data protection standards and regular audits to ensure the security of the system. 2. Secure Data Transmission e-SANCHIT uses secure protocols for data transmission, ensuring that all information uploaded by users is encrypted. This minimises the risk of unauthorised access or data breaches, safeguarding sensitive business documents. 3. Authentication Measures Access to the e-SANCHIT platform requires user authentication, typically through a combination of a username and password and, in some cases, digital signatures. These measures ensure that only authorised individuals can upload or view documents, enhancing the platform's security. 4. Regular Updates and Monitoring The platform is continuously monitored and updated regularly to address vulnerabilities and adapt to the evolving cybersecurity landscape. This proactive approach to security maintains the platform's defence against potential cyber threats. 5. Compliance with IT Regulations e-SANCHIT operates in compliance with India's information technology and cybersecurity regulations, aligning with legal standards for digital platforms and data protection. While e-SANCHIT is built with safety and security in mind, users are also advised to follow best practices for cybersecurity, such as using strong, unique passwords, keeping their login credentials confidential, and ensuring their computers are protected against malware. By combining e-SANCHIT’s robust security measures with vigilant personal cybersecurity practices, users can confidently utilise the platform for their import-export documentation needs. How IEC Code Tracking Works? IEC code tracking is a process that allows businesses and individuals to monitor the status of their Importer Exporter Code (IEC) application or to verify the validity of an existing IEC. This tracking capability is essential for ensuring that the IEC application process is progressing smoothly or for conducting due diligence in trade transactions. Here's how IEC code tracking typically works: 1. Online Tracking through DGFT Portal The Directorate General of Foreign Trade (DGFT) provides an online facility for IEC code tracking on its official website. This service enables applicants to check the status of their IEC application after submission. 2. Application Reference Number To track the status of an IEC application, the applicant needs the application reference number, which is provided at the time of submitting the IEC application. This reference number is crucial for accessing the application's status. 3. Status Update Upon entering the application reference number on the DGFT portal, the system displays the IEC application's current status. This may include stages such as "Under Process," "Approved," "Rejected," or "Requires Additional Information." This real-time update allows applicants to take necessary actions if there are any issues or delays in the processing of their applications. 4. Verification of Existing IEC To verify an existing IEC, stakeholders such as banks, customs authorities, or business partners can use the DGFT portal or other authorised platforms to check the authenticity and validity of an IEC code. This is often done by entering the IEC number and, in some cases, additional details like the business name or PAN number. 5. Automated Alerts Some systems may offer the option to receive automated alerts or notifications regarding the status of IEC applications. This feature ensures that applicants are promptly informed of any updates, reducing the need for manual tracking. IEC code tracking is an important tool for businesses engaged in international trade, providing transparency and control over the application process and ensuring the validity of trade credentials. It facilitates smoother trade operations by minimising uncertainties and delays related to IEC acquisition and verification. Conclusion The Importer Exporter Code (IEC) emerges as a fundamental cornerstone for businesses engaging in international trade, encapsulating a broader narrative of global commerce facilitation. As delineated in this comprehensive exploration, the IEC not only serves as a regulatory mandate but also paves the way for enterprises to seamlessly integrate into the global market, highlighting its indispensable role in the architecture of international trade. From its application and verification process to the nuances of e-SANCHIT's secure digital document submission platform in India and the operational mechanics of IEC code tracking, each facet of the IEC ecosystem contributes to simplifying the complexities of global commerce. The IEC stands as a beacon of efficiency, security, and compliance, indispensable for businesses aiming to navigate the intricate landscape of international trade with agility and confidence. It underscores the evolving dynamics of global trade practices, emphasising the criticality of embracing digital advancements and adhering to regulatory frameworks to foster a conducive environment for trade and commerce. As businesses and individuals continue to leverage these tools and processes, the pathway to global market participation becomes increasingly accessible, underscoring the profound impact of the IEC in the broader narrative of international commerce. Frequently Asked Questions About IEC Code How long does it take to obtain an IEC Code?The processing time for obtaining an IEC Code can vary. Still, typically, the Directorate General of Foreign Trade (DGFT) issues the IEC within 3 to 7 working days after receiving a correctly filled application, provided there are no discrepancies or additional information required.Can an individual apply for an IEC Code, or is it only for businesses?Both individuals and businesses can apply for an IEC Code as long as they intend to engage in import or export activities. Freelancers and sole proprietors involved in international trade also need to secure an IEC.Is there an expiry date for the IEC Code?No, the IEC Code does not have an expiry date. Once obtained, it is valid for the lifetime of the entity unless revoked or surrendered. This makes it a one-time registration and compliance requirement for importers and exporters.What documents are required for the IEC Code application?The primary documents required include a PAN card (for the individual/business), proof of address, and a bank certificate or cancelled cheque bearing the entity’s name pre-printed on it. Additional documents might be required based on specific cases or updates in DGFT regulations.Can the IEC Code be cancelled or surrendered?Yes, if a business or individual decides to discontinue import/export activities or close the industry, the IEC Code can be surrendered. The DGFT provides a procedure for the cancellation or surrender of the IEC, which involves submitting a request along with necessary documents for deactivation.Is the IEC Code required for service exports, or is it just for goods?The IEC Code is required for the export of services as well as goods. Any earnings in foreign exchange, irrespective of the nature of the service, require the service provider to have an IEC.How does one verify the authenticity of an IEC Code?The DGFT portal offers an online IEC verification tool. Anyone can enter the IEC number to check its validity and view the details of the IEC holder. This tool is crucial for verifying the authenticity of business partners in international trade.

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Once registered, users can log in to their account and begin the document upload process, which includes attaching digital copies of all required documents, such as invoices, packing lists, and certificates of origin. Each uploaded document is assigned a unique Image Reference Number (IRN), which is used to reference the documents during customs clearance. The system automatically processes and verifies the documents, integrating them with the customs clearance process. Users can track the status of their submissions and receive notifications on any actions required, ensuring a smooth and continuous flow of information. The Uses of e-SANCHIT e-SANCHIT is leveraged for a multitude of purposes aimed at optimising the customs clearance process in India, making it an indispensable tool for importers, exporters, and logistics professionals. Primarily, it is utilised for the paperless submission of all key import and export documents, significantly reducing the time required for customs clearance. By enabling stakeholders to upload documents electronically prior to the arrival of goods, e-SANCHIT ensures faster processing at customs, thereby accelerating the overall supply chain flow. Furthermore, e-SANCHIT acts as a centralised digital repository for trade documents. This feature not only facilitates easy access and retrieval of documents for compliance and verification purposes but also minimises the risks associated with the loss of physical paperwork. The platform enhances transparency in the customs clearance process, allowing traders to track the status of their document submissions and receive timely updates on any required actions, which aids in the more effective planning and execution of logistics operations. Moreover, e-SANCHIT supports the integration with other digital platforms and government initiatives aimed at trade facilitation, creating a cohesive ecosystem for managing international trade transactions. This interconnectedness simplifies compliance with regulatory requirements, streamlines the documentation process, and promotes a more efficient, transparent, and user-friendly approach to customs clearance in India. The Safety of e-SANCHIT in India Concerns regarding the safety and security of digital platforms are paramount, primarily when they handle sensitive trade documentation. In the context of e-SANCHIT in India, the platform is designed with robust security measures to safeguard user data and ensure the integrity of the document submission process. Utilising advanced encryption protocols, e-SANCHIT protects the data exchange between users and the customs database, preventing unauthorised access and data breaches. The platform operates under the oversight of the Indian Customs authorities, adhering to strict data protection regulations and cybersecurity standards. Regular security audits and compliance checks are conducted to identify and mitigate potential vulnerabilities, ensuring that e-SANCHIT remains a secure environment for its users. Moreover, access to e-SANCHIT is restricted to registered users who must undergo a verification process, further enhancing the platform's security framework. Users are also encouraged to adopt best practices in data security, such as using strong passwords and keeping their login information confidential. Related reading: India's National Logistics Policy Conclusion e-SANCHIT stands as a beacon of India's commitment to digitising and streamlining the customs documentation process, significantly impacting how trade operations are conducted within the country. By facilitating the electronic submission of import and export documents, e-SANCHIT not only enhances the efficiency of customs clearances but also propels India towards a more integrated and transparent trade environment. This digital leap forward in the customs domain exemplifies the potential for technology to revolutionise traditional processes, ensuring that businesses can operate more smoothly and with greater compliance. The trading community's adoption of e-SANCHIT and its integration into the broader logistics and supply chain operations underscore its value in fostering a competitive and agile trade ecosystem. As we move further into the digital age, platforms like e-SANCHIT will continue to play a critical role in enhancing the ease of doing business and securing India's position as a key player in the global market. The success of e-SANCHIT paves the way for future innovations in trade facilitation, promising a more efficient, secure, and sustainable trade landscape for India. Related read: What Is an IEC Code and Why Do You Need It? Frequently Asked Questions About e-SANCHIT How do I register for e-SANCHIT?To register for e-SANCHIT, users need to visit the Indian Customs Electronic Gateway (ICEGATE) website and sign up for an account by providing the required business details and documentation. Once the account is verified, users can access e-SANCHIT through their ICEGATE login credentials.Can all types of documents be uploaded to e-SANCHIT?e-SANCHIT is designed to accept a wide range of trade-related documents, including commercial invoices, packing lists, bills of lading, certificates of origin, and more. However, it’s essential to check the latest guidelines on the ICEGATE portal for any document-specific requirements or restrictions.Is there a limit to the number of documents that can be uploaded to e-SANCHIT?While there may be technical limits on file size per upload, e-SANCHIT generally allows for the submission of multiple documents as needed for each shipment. Users should ensure that documents are clear and legible to avoid rejection.What should I do if my document uploads to e-SANCHIT fails?If a document upload fails, users should first check for any technical issues, such as file size or format compatibility. If the problem persists, contacting the ICEGATE helpdesk for assistance and troubleshooting is recommended.How does e-SANCHIT improve the customs clearance process?e-SANCHIT improves the customs clearance process by enabling the advanced electronic submission and verification of documents. This reduces the need for physical paperwork, speeds up the verification process, and allows for quicker clearance of goods at customs.Is training available for new e-SANCHIT users?Yes, the Indian Customs and Central Board of Indirect Taxes and Customs (CBIC) periodically offer training sessions and tutorials for new users. Additionally, resources and user guides are available on the ICEGATE portal to assist with the e-SANCHIT submission process.

April 16, 2024