BFCM is coming to town, and many store owners are gearing up for the biggest sales event of the year!
Among the numerous promotions that brands can offer, free shipping stands out as a powerful strategy. In 2023, free delivery was a top factor influencing customers’ purchasing decisions. This tactic encourages customers to buy more than they originally intended in order to qualify for free shipping, ultimately driving up sales while delivering added value to shoppers.
Whether you're a seasoned retailer or just starting out, this post will equip you with the knowledge to boost your sales and deliver exceptional value to your customers.
Impressive Growth Metrics from BFCM 2023
BFCM, short for Black Friday Cyber Monday, is one of the most anticipated shopping events of the year. In 2024, Black Friday will fall on November 29th, followed by Cyber Monday on December 2nd.
The Black Friday Cyber Monday (BFCM) season in 2023 saw impressive growth across several key metrics.
- According to Facteus, total Black Friday sales increased by approximately 6% year-over-year (YOY), despite rising inflation and the increasing cost of goods. Cyber Weekend contributed 25% of total November sales, underscoring the significance of this time for retailers.
- Online spending reached new heights, with Black Friday sales totaling $9.8 billion (a 7.5% increase from 2022, while the number of shoppers also increased by 5%) and Cyber Monday sales hitting $12.4 billion, marking a 9.6% rise from the previous year.
- Spending per customer rose by 1%, indicating that consumers were willing to spend more to take advantage of discounts.
- Over half (53.56%) of brands saw their daily sales double during the BFCM period, and 31.19% of brands experienced a quadrupling of their sales, while 25.08% enjoyed a fivefold increase.
Looking ahead to Black Friday and Cyber Monday 2024, the season is expected to kick off even earlier, possibly starting as early as September. Early indicators from Google Trends show that BFCM-related keywords are already gaining traction, suggesting that consumers and retailers alike are preparing for the holiday shopping period sooner than in previous years.
The Importance of Free Shipping in E-commerce
“This year’s Black Friday has been defined by delivery. nShift conducted research with almost 10,000 online shoppers and found that 70% of Black Friday shoppers were looking for free deliveries, alongside low product prices, before buying.”, said by Sean Sherwin-Smith, Product Director, Post-Purchase at nShift.
1. Boosting Sales and Customer Loyalty
Offering free shipping is a powerful tool for increasing sales and fostering customer loyalty.
Data from Stitch Labs indicates that retailers who provide free shipping typically see a sales boost of around 10% on average. Furthermore, a significant 75% of consumers prefer free shipping to faster delivery, showing that saving money is prioritized over quick shipping times. As a result, free shipping has transitioned from being a desirable perk to a critical offering. By eliminating shipping fees, businesses not only reduce friction in the buying process but also make their products more appealing to customers.
Furthermore, free shipping can create a stronger emotional connection between the customer and the business. When customers feel they are getting a great deal, they are more likely to make a purchase and return in the future. 62% of shoppers will not purchase from a retailer that doesn’t offer free shipping. Satisfied customers are more likely to become repeat buyers and even recommend the brand to others, further driving long-term business success.
2. Increasing Average Order Value (AOV)
Customers often view the free shipping threshold as an incentive to buy more. To meet this threshold, they are willing to add extra items to their cart, sometimes exceeding their original budget. For instance, if a business sets the free shipping limit at $100, customers who might have only spent $85 will add additional products to meet the requirement.
Research shows that 47% of shoppers are inclined to meet the minimum spend to qualify for free shipping, as they perceive more value in purchasing another product than in paying for delivery. This not only increases the AOV but also encourages customers to explore more of the brand’s product range, potentially leading to higher overall sales.
3. Reducing Cart Abandonment
The overall cart abandonment rate averages around 70%, and one of the primary reasons shoppers leave without completing their purchase is due to unanticipated shipping fees. When customers encounter these hidden fees at checkout, it often leads to frustration and ultimately, the decision to abandon the purchase.
By offering free shipping, businesses can remove this obstacle and create a more seamless checkout experience. Without the concern of added costs, shoppers are far more likely to complete their transactions. This reduction in cart abandonment translates into higher conversion rates and more consistent sales. In today’s competitive online marketplace, where shoppers have countless alternatives, providing free shipping can be the difference between securing a sale and losing a customer to a competitor.
Implementing Profitable Free Shipping Strategies
1. Free Shipping on Orders Over a Certain Value
A common and effective way to offer free shipping is by setting a minimum order value that customers must reach. However, it’s crucial that this threshold is close to your store’s average order value. If you set it too high, it could deter customers and lead to more losses than gains.
To make this offer work for as many customers in your store as possible, ensure customers are aware of the minimum required by using notifications, pop-ups, progress bars, or banners in the product catalog or shopping cart, helping guide them toward qualifying for free shipping.
To encourage customers to meet the free shipping threshold, you can consider utilizing the Cart Upsell feature from Salepify. This feature provides a progress bar inside the shopping cart that dynamically tracks the total order value as products are added. Customers can easily see how much more they need to spend to qualify for free shipping, making the process clear and motivating them to add additional items to their cart.
2. Free Shipping Based on a Specific Number of Items
Another helpful strategy is to offer free shipping when customers purchase a specific number of items. This approach can be particularly useful for clearing out excess inventory, promoting key products, or highlighting new arrivals. Similar to the above strategy, remember to set an item count that aligns with your average order value.
To maximize the effectiveness of this strategy, you should consider using upselling and cross-selling techniques. For example, you can recommend complementary or related products that enhance the customer's purchase, making it easier for them to reach the required number of items. This not only helps in achieving the free shipping threshold but also introduces customers to additional products they might find valuable.
3. Limited-Time Free Shipping Offers
Offering free shipping during specific periods, such as major shopping events like Black Friday, Family Day, or the holiday season, can significantly boost sales. These time-limited promotions create a sense of urgency, prompting customers to complete their purchases before the offer ends.
Strategically timing these offers can maximize their impact. For instance, launching a free shipping campaign at the beginning of a major shopping event can capture early shoppers, while extending the offer through the event can maintain momentum and drive ongoing sales. By aligning free shipping offers with high-traffic periods, you can enhance conversion rates and drive more revenue during these crucial times.
Conclusion
As BFCM approaches, offering free shipping becomes a crucial strategy to boost sales and enhance customer satisfaction. The impressive results from BFCM 2023 underscore the impact of free shipping on increasing average order value, reducing cart abandonment, and building customer loyalty.
To make the most of this opportunity, consider implementing effective free shipping strategies, such as setting minimum order values or offering promotions during peak shopping periods.
If you feel overwhelmed, third-party apps like Salepify’s Cart Upsell can help you optimize these efforts, providing a dynamic progress bar that tracks spending and customizes the shopping experience to align with your brand.