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How Offering Free Shipping Can Increase Your Profits

How Offering Free Shipping Can Increase Your Profits

In the ecommerce industry vendors know the competition is fierce and online sellers are always looking for ways to improve tight profit margins. Many online companies struggle with the idea of offering free shipping, since that idea may seem counter-productive to increasing online profit margins.

However, surprisingly, studies conducted by marketing analysts found that the major cause of shopping cart abandonment comes down to shoppers not wanting to pay $7.00 or more in shipping costs.

If you can keep your shipping costs low, offering customers free shipping can give you an edge

Partnering with a fulfillment expert and using advanced software can help manage your free shipping options whether  your online business consists of either light-weight, small products, or broad and varied product lines that vary in weight, with wide distributions. No matter the shipment specs, free shipping can encourage shoppers to click through to the checkout page.

Customers respond to free shipping offered on special occasions

Another proven alternative is offering free standard shipping to customers as an incentive. Choosing to offer free shipping on special occasions such as the holidays or as a thank you for returning business has shown to be more effective in increasing sales than offering a percentage off products in your customers’ shopping carts.

Sweeten the deal

When you have a special sale going on, you can use free shipping for orders over a certain dollar value to increase the total unit sales. Offering free shipping with coupon codes in your mailed circulars or included in recent deliveries can also boost sales with loyal repeat customers.

Phase V Fulfillment Company can help you increase sales and save money

Outsourcing your fulfillment and order shipping processes to a third-party logistics company, such as Phase V Fulfillment Company, can help you streamline your supply chain operations and allow you to save enough money to offer free shipping without affecting your bottom line.

Partnering with Phase V can help you ship orders in the most cost-effective, time-efficient way possible, thus, helping to increase your sales and profit margin. Our logistics team takes the time to learn your company’s specific packaging and shipping needs and devises a plan to help your business prosper and expand to that next level.

Warehousing and fulfillment savings

When your online company expands to the point where storage becomes an issue and your talented personnel are running around trying to package and ship items, instead of developing new products, your growing pains can halt or slow your growth. Phase V saves you the overhead cost of purchasing or renting a warehouse and the extra administrative responsibilities involved in training fulfillment staff to keep your supply chaining flowing as it should. At our secure facilities in Ft. Myers, near major shipping routes, our experienced staff onboards your inventory, inspecting it for quality and quantity, and assigns SKUs to identify your products.  Your inventory will occupy a dedicated space within our warehouse.

We package your products following your packing standards and branding

We work with your packaging specs, to include all marketing inserts, precisely following your packaging instructions. If you want to include branded materials, such as invoices, bills of lading and shipping labels, Phase V can do that, as well.

Uncomplicated shipping

Phase V shipping experts are well-versed in shipping methods and freight regulations.  Our shipping department can handle custom shipping options, with domestic and international distribution solutions that are focused on saving you money and satisfying your customers.

Technology solutions that keep you in the loop at all times

Easy to use, our web-based dashboard provides inventory management tools that allow you to view inventory updates in real-time, 24/7. You can view existing orders, edit orders, create orders and so much more. You’ll be able to receive low inventory alerts in sufficient time to restock because no one wants to lose sales from out of stock and back orders.

Customer service reps that cater to your customers’ needs

At Phase V, we realize that online customers shop any time of the day from anywhere. That’s why our knowledgeable and resourceful customer care reps are available to promptly answer your customers’ questions and address concerns about products and orders. Outstanding customer service helps increase sales by building brand loyalty. When customers are happy with your products and receive their orders on time, they are more likely to purchase from your company again and spread the word to their friends and families.

With so much competition for ecommerce sellers, consistency in customer experience is a big deal in online sales. Centralizing all of your fulfillment and inventory management systems helps grow your bottom line, by increasing sales and saving money on shipping. At Phase V, we are always looking for ways to save you money and automate your supply chain operations. Partner with us to reduce costs and expand your business, helping you get an edge on your competition and allowing you to offer free shipping. Contact Phase V and grow with us!