How To Offer Free Shipping — And Recover Costs Too

How to offer free shipping and recover costs 

If done right, free shipping still works. 

A report shows that 62% of consumers will not consider buying from an online retailer that doesn’t offer free shipping.

But as a retailer, there’s a big obstacle: how can you recover free shipping costs?

Jump to:

1. Perks with a loyalty program

2. Prioritize first-time customers

3. Create DIY product bundles

4. Set a minimum threshold

5. Promote slow-moving product categories

6. Increase AOV with smart recommendations

7. Cater to only specific locations

8. Highlight free shipping only on pre-order campaigns

How To Offer Free Shipping Without Going Broke

1. Perks with a loyalty program

Getting repeat customers is easier than getting new customers. 

And you can make them come back to you with a tiered loyalty program with a free shipping nudge. 

How to optimize your free shipping feature:

✔️ Offer free shipping as a birthday reward for loyalty program members to celebrate their special day. Send personalized birthday emails with a unique free shipping code or automatically apply free shipping to their account during their birthday month.

✔️ Align your loyalty program with cause-related initiatives or charitable partnerships to give back to the community. For example, offer free shipping on purchases of select products where a portion of the proceeds is donated to a charitable cause, inspiring members to support a meaningful purpose.

✔️ Implement a referral program where existing customers can earn rewards or discounts for referring friends or family members to take advantage of the free shipping, returns, and trial period offer. 

✔️ Offer tiered rewards based on customer spending. Higher tiers can include benefits like free shipping, which encourages customers to spend more to unlock these perks.

Free shipping example - Oasis

See how Oasis offers unlimited next-day delivery for shoppers who joined their loyalty program. 

2. Prioritize first-time customers

Now that we have covered repeat customers, let’s move on to acquiring those first-time customers. 

You can effectively attract first-time visitors with a free shipping feature to ultimately drive higher conversion rates.

How to optimize your free shipping feature:

✔️ Offer free shipping on the first order placed through your mobile app to encourage app downloads and usage.

✔️ Create urgency with time-bound free shipping offers for first-time customers to get them to buy faster. 

3. Create DIY product bundles

Product bundling is a common marketing approach used by firms to get customers to buy more than they intended.

Especially, when it qualifies for free shipping.

How to optimize your free shipping feature:

✔️ Set a minimum purchase threshold for product bundles to qualify for free shipping. This way, customers will add more to the product bundle to reach the threshold and qualify for the free shipping offer.

✔️ Segment your customer base and tailor the free shipping offer for product bundles to different customer segments. For example, offer exclusive bundle deals to loyal customers to reward their continued support and incentivize repeat purchases.

Free shipping example - Dr. Squatch

4. Set a minimum threshold 

Free shipping along with returns and a trial period can be a powerful combination to incentivize purchases and provide a risk-free shopping experience. 

How to optimize your free shipping feature:

✔️ Set a minimum purchase threshold to qualify for free shipping. For example, customers may need to spend a certain amount (e.g., $50 or more) to qualify for these benefits. 

✔️ Use customer data and browsing history to provide personalized product recommendations that help customers reach the minimum threshold.

✔️ Notify customers when products they're interested in are running low in stock, encouraging them to reach the minimum threshold before items sell out.

Free shipping example - Caraway

See how Caraway offers free shipping for orders only on orders above $90 with additional perks like free returns and a 30-day trial period.  

5. Promote slow-moving product categories

If your products are sitting in your warehouse, then you are paying for storage space. 

To move such products, a free shipping nudge can make all the difference. 

How to optimize your free shipping feature:

✔️ Identify the products that have been in storage the longest or are slow-moving. These are the items you should focus your free shipping promotion on.

✔️ Bundle slow-moving products with popular ones and offer free shipping on the entire bundle. This increases the perceived value and moves more inventory.

Free shipping example - Amazon

6. Increase AOV with smart recommendations

92.6% of customers say imagery is the #1 factor influencing their purchase decisions.

How to optimize your free shipping feature:

✔️ Use persuasive language to motivate action, like "Add $X to your cart for free shipping!" or “You’re $X away from free shiping.”

✔️ Provide product suggestions or highlight popular items to help customers reach the free shipping threshold.  

Free shipping example - Bliss World  

We love how the store has a clear progress bar with its brand colors and a swipeable section for product recommendations.   

7. Cater to only specific locations

Picture this: a customer visits your online store and sees a message tailored to their location, offering free shipping on orders delivered within their area. 

It's like delivering a personalized shopping experience right to their doorstep.

How to optimize your free shipping feature:

✔️ Identify the geographic areas where you can offer free shipping, such as local regions, specific states, or countries with certain conditions. For example, "Free shipping on orders over $50 within California."

✔️ Enable address validation during the checkout process to confirm eligibility for free shipping based on location.

Free shipping example - Then I Met You

See how the store specifies location eligibility for free shipping. 

8. Highlight free shipping only on pre-order campaigns

Product launch campaigns can be the perfect to gauge interest. 

And you can sweeten the deal with free shipping on pre-orders. 

This helps with inventory planning and ensures higher order values, as customers are often willing to purchase additional items to take advantage of free shipping.

After the launch campaign ends, only offer standard shipping rates to recover free shipping costs. 

Free shipping copy examples

Here are some effective free shipping copy examples to help convert more abandoned carts into completed purchases:

Threshold-Based Free Shipping: "Get free shipping on orders over $50! Shop now and save on shipping costs."

Limited-Time Offer: "For a limited time only, enjoy free shipping on all orders! Don't miss out, shop now."

Exclusive Email Offer: "Thank you for being a valued subscriber. Here's an exclusive code for free shipping on your next order."

Seasonal Promotion: "Celebrate the holidays with free shipping on all gifts! Spread joy without worrying about shipping fees."

First-Time Buyer Incentive: "Welcome to [Store Name]! Enjoy free shipping on your first order as our way of saying thank you for choosing us."

Abandoned Cart Recovery: "Oops, it looks like you forgot something! Complete your purchase now and enjoy free shipping on your entire order."

Bundle Deal: "Buy [Product A] and [Product B] together and get free shipping on your entire order. Perfect for stocking up on essentials!"

Flash Sale Promotion: "Free shipping for the next 24 hours only! Hurry, grab your favorites before this offer ends."

VIP Member Benefit: "Upgrade to VIP status and unlock exclusive perks, including free shipping on all orders. Join now to start saving!"

Refer-a-Friend Reward: "Share the love and enjoy free shipping for you and a friend when they make their first purchase. Start referring now!"

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