Free shipping, free return
Free shipping and free return have become good policies to attract new customers to buy on your online store. However you should do it in such a way that you do not incur loses. Loses will be catastrophic for your e-commerce business. One thing that a lot of entrepreneurs have identified as a selling point is offering free shipping. Free shipping is usually poor quality shipping. It is mostly an element of snail mail. Snail mail means that you should expect receiving your product in about 2 to 3 months. However as a concerned entrepreneur you should focus on making free shipping and free returns a top priority. This means that you should use express shipping if you want to attract more customer. This method is good and profitable if you mainly give free shipping to customers within you border. Some e-commerce entrepreneurs take it to another level by only offering free shipping and returns to people within the same city.
Can free shipping be profitable?
This is a question that puzzles a lot of entrepreneurs. They don’t seem to understand how free shipping can be profitable when it consumes so much resources on the business side. There are many strategies that you can use to make free shipping profitable. The most commonly used strategy is increasing the price of the goods so that you do not incur loses. Sometimes this method does not work due to the fact that you will be already competing with other sellers. The best thing you could devise is a policy for free shipping that only carters for local buyers. This will prevent you from making loses due to competition. Local shipping is usually very cheap compared to international shipping. You can also deliver some packages on your own if they are within the same city.