How to Offer Free Delivery to Your Customers in 2024
5 min read
In business today, there are not many ways to compete and stand out. What you’re selling, someone else is also selling. The price you’re asking, someone else is also asking.
With these new developments and a highly competitive scene, how can you compete successfully? The answers are branding, packaging, discounts, and perks.
Developing a strong brand helps you build a loyal customer base. Good branding can attract new clients, and perks can keep your brand perception fresh and engaging.
One such perk is offering Free Delivery. But what does "free delivery" really entail and how can you offer it to your customers?
Unpacking the Term: What Does Free Delivery Mean?
Free delivery is a delivery option where customers do not pay the charge for receiving the items from the vendor.
A quick illustration is when you order something from a business, and they deliver it to your house without you paying for the delivery costs.
That’s what free delivery means. And in some cases, it can be referred to as free shipping.
There are two types of free delivery that you can offer as a business:
Conditional: This means to set conditions for customers to be eligible
Unconditional: This means that customers can receive free delivery on every order without any conditions.
Why Should I Offer Free Delivery To My Customers?
One of the key selling points of free delivery is the convenience that it offers. Delivering packages to your customer’s doorstep without additional charges can be a game-changer that makes them loyal to your brand.
It can also cause a spike in sales as more customers would likely patronize to enjoy the perk of free delivery.
Additionally, offering free delivery can help you increase customer feedback and engagement. For example, you can ask customers to give their feedback on previous purchases to qualify for free delivery, naturally increase your minimum order requirements, and even get them to refer someone to enjoy free delivery.
To further buttress this, here are 5 free delivery statistics from 2023:
Free shipping orders have a 30% higher average order value.
Businesses that offer free shipping have a 20% higher conversion rate than those that do not.
84% have made a purchase specifically due to free shipping.
58% of customers have added additional items to their carts to qualify for free shipping.
90% of consumers say that free shipping is their primary reason for shopping online.
How to Offer Free Delivery to My Customers
In a conditional model, free delivery could be used to reward customers for engaging in certain tasks or purchasing a particular order value.
However, to offer free delivery unconditionally, your business can factor in delivery costs in the price of the product.
To break this down, let’s review all the free delivery options you can try out:
Free Delivery by Order Value
Free delivery on all orders: This is the most straightforward option, but it can be expensive for your business, especially for larger or heavier items.
Free delivery on orders over a certain amount: This encourages your customers to spend more to qualify for free shipping. It can be a good way to increase your average order value.
Free express delivery on orders over a certain amount: This option offers a faster delivery time as an incentive for customers to spend more.
Free Delivery by Item
Free delivery on select items: This is a good way to promote specific products or clear out your inventory.
Free delivery on orders that include a specific item: This can be used to encourage customers to buy a particular product, such as a high-margin item. This method is good for upselling or cross-selling.
Free Delivery by Time
Free delivery for a limited time: This can create a sense of urgency and encourage customers to purchase sooner rather than later.
Free delivery on specific days or weekends: This can be a good way to drive traffic during slow periods.
Free Delivery for Retaining Customers
Free delivery for loyal customers: This is a way to reward repeat customers and encourage them to continue shopping with your business.
Free delivery with in-store pickup: This can be a convenient option for customers who live near a store.
Free delivery vouchers: These can be offered as part of a promotion or giveaway.
Things To Consider When Choosing A Free Delivery Offer
Your business model: Can you afford to offer free delivery on all/some orders? If you’re a new business, it might be better to understand your customers’ shopping habits first, and your profit margin next, before offering free delivery.
Your target audience: Will free delivery appeal to your customers? If you were selling valuable items like high-priced jewelry, customers might prefer to pick them up in person.
Your delivery costs: How much will it cost you to offer free delivery? If delivery costs more than your profit margin, it might be safe to offer other incentives, like a discount on price, than free delivery.
Your marketing budget: How will you promote your free delivery offer? Don’t spend the allocated budget for free delivery in marketing your products to reach your desired audience.
Your delivery partner: Can your delivery partner handle the orders seamlessly? Using a secure, reliable, and affordable delivery partner like Kwik Pik can save you from lost packages, delayed deliveries, and high costs. Sign up as a Kwik Pik business partner today.
Conclusion
The promise of free delivery can entice your customers to buy more and set your brand apart as the go-to store. By scrutinizing the details, you can make informed decisions about how to offer free delivery to your customers without breaking the bank.
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