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Shipping for the online store: zero price VS. Lower price | Hermes_Fang

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If you run an online business, you want to make money while keeping your customers happy. These two are the foundation of your business’s existence. Offering free shipping and online discounts are two of the most common methods. You’ll add value to your customers’ orders while saving them money. A lousy plan to use both free shipping and discounts, on the other hand, could cost your business a lot of money.

We’ll look at the differences between free and cheaper delivery options and how they affect your business, and which one you should use.

Zero price effect

According to research, when customers shop and have multiple alternatives to choose from, they tend to associate higher costs with higher quality and value.

Online customers generally welcome a higher price in any category. Moreover, when consumers consider free services or products, they do not separate the benefits from the costs; they believe the benefits are far greater. If goods, merchandise or services are provided for free, this aspect of human nature drives us to seek value. As a result, we feel unique and valued, which tends to direct our loyalty antenna to a specific brand.

Free delivery concept

According to statistics, consumers between the ages of 46 and 75 favor free shipping. In addition, free delivery is most popular with consumers aged 56 to 65, who represent 35.5% of the total. As a result, this group does not care about bargains on the Internet.

Although free shipping is preferred by 93% of customers over discounts, if you opt for free shipping, it will affect your business in the long run, as rising costs will reduce your revenue.

No drop shipping strategy

There is no one-size-fits-all method for how online retailers should handle delivery. You’ll need a well-thought-out execution approach that benefits you and your client.

Depending on a customer’s characteristics, such as geography, loyalty, and the nature of the order, this may involve free shipping or a combination of free and paid shipping.

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Zero Price VS. Lower price

Between low product costs and free shipping, there is no apparent winner. Each is distinct and you should consider them as methods to improve your bottom line and order value. To save money, a consumer may choose to purchase larger quantities.

As a result, they may be able to meet the minimum order requirement for free shipping. Before choosing a winning approach for your digital business, consider the following steps.

Analyze the cost

It’s not a good idea to increase the price of certain items if sales are down. Reducing the cost of a product when sales volume increases to avoid losing its perceived value. People tend to spend more during the holiday season (Thanksgiving, Christmas, etc.) Consider offering free shipping to increase average order value (AOV) and make customers feel like they’re doing a good job. affair.

When using free shipping, make sure the minimum cart size listed is larger than your normal cart size. Free shipping will be advantageous and cost-effective through this strategy.

Understand the market

The type of market you operate in will determine your eventual approach. It is essential to adjust your pricing strategy according to the e-commerce channel you choose. For example, you might have a bestselling book on Amazon with many shipping options, while prices on your website might change based on traffic and customer trends on both platforms.

Regularly diversify your costs to appeal to a diverse audience with varying demands and perspectives. Also use the data to help with shipping methods. Amazon, for example, offers two shipping options: Seller Fulfilled Prime and Fulfillment by Amazon (FBA).

If you use e-commerce platforms such as Shopify, Shoplazza, etc., you can have extensions for dropshipping. The price of the product and shipping will depend on your sources.


There is no one-size-fits-all method for how online retailers should handle delivery. You’ll need a well-thought-out execution approach that benefits both you and your client. Free shipping is a strategy that can be beneficial and profitable for your business.

(Contributed by Muhammad Zeeshan and Hermes Fang)