In the age of Amazon, shoppers are getting quick, free deals on everything from stationery to furniture. The “Amazon Prime effect” leads many consumers to expect to receive their items in two days or less, and when a company falls short of this expectation, it can negatively affect brand perception. According to one study, one-third of consumers believe that fast shipping increases brand loyalty, while 90% of consumers believe that free shipping is important to them. Another study showed that 74% of consumers prefer cheap or free shipping over expedited shipping. There is a lot of conflicting information about which is best, and although it is good to offer both, it is not always a good idea to do so.
Offering fast and free shipping isn’t feasible for most businesses. Unless you ship a lot of packages per day, you may not be able to offer the same speed and cost as a big box retailer like Amazon. Instead, you can choose between offering expedited shipping or free shipping.
So, which one is the best? Fast or free? The answer is not always simple.
Fast shipping
In most cases, consumers need to buy quickly. Whether it’s a store owner who runs out of packaging, a cardboard box to deliver their own goods, a spouse who waits until the last moment to order a birthday gift, a student who needs a book for class or everything else is very demanding of things, just. All need a quick shipment from time to time.
We also live in a world that demands instant gratification. For most of us, the thought of placing an order from a catalog by mail and waiting four or six weeks to receive our purchase is unthinkable – even though that’s what shopping is all about. Customers expect orders to be received quickly, but if they wait more than a few days, they will not be satisfied with the experience.
Offering fast shipping attracts customers who want to receive their orders quickly. Doing so will also make your company more attractive to customers who want instant gratification and are impatient to wait a long time to receive their orders. Consider the example of the Chinese B2B platform.
However, as a business owner, providing fast shipping can be a challenge. You need to have enough workers to quickly prepare the goods for shipment, and you need to determine the shipping cost quickly. Getting a package from point A to point B in less than two days can be expensive, but you have to decide whether to get cash or pass it on to the customer.
The added cost of express shipping is affordable for most businesses and small businesses. Instead, they should pass it on to the customer as an additional shipping fee. If you choose to go this route, you need to explain the extra cost to your customers and show them whether you charge express or free: what shipping method do people want? g is reasonable for the service you offer.
Free shipping
For obvious reasons, free shipping also appeals to consumers. During the busy holiday season, it makes sense that studies report that 88% of online shoppers choose free shipping and expedited shipping. Free shipping reduces the total amount of money customers have to spend when shopping online. Instead of allocating part of their budget to pay for shipping, they have more money to spend on products they are interested in buying. From the point of view of consumers, free shipping is an attractive benefit that sets many businesses apart from the competition.
However, for business owners, the cost of offering free shipping to customers can be daunting. Online retailers that offer free shipping are forced to pay for shipping themselves, which can significantly cut into profits.
When you offer free shipping, many retailers set it up as a short-term promotion or offer discounts to help reduce the financial impact. For example, many retailers require customers to meet minimum purchase requirements to qualify for free shipping. This helps to reduce shipping costs by ensuring that each order generates a certain amount of money.
Choose the shipping method that is suitable for your business
Offering fast or free shipping is beneficial for online sellers like the ones listed on the international B2B marketplace. While many customers want instant gratification, others are willing to wait a long time to put money in their pocket. Regardless of the options your business offers, you need to decide how you will pay for it.
While it’s impossible to please everyone, offering multiple shipping methods is often the best option. Offering both expedited and free shipping may not be feasible from a financial standpoint, but you can offer customers a choice between expedited shipping or free shipping. For customers who want to receive their order without paying for shipping, you can save money by using the slow process – be sure to expose the customer to the fast shipping before they place their order! For those who want to receive their items quickly, express shipping options are available at reasonable prices.
Offering multiple shipping options can be a little tricky at first, but once you’ve explored all the possible options, you can stand out from the competition and attract customers with different needs.
Finally, a shipping method that works for one company may not work for another. If you’re selling something small and light like jewelry, it may be easier to offer free shipping than something big and heavy (like sports gear). It’s important to consider your business, budget, and personal goals and needs when determining available shipping options. Meeting customer expectations is critical, but not at the expense of your own business.