Fast shipping or free shipping: What do customers prefer and how to balance it in your e-commerce?
When we talk about selling online and shipping internationally from an e-commerce business, the type of shipping you offer in your online store can make the difference between a new sale or an abandoned cart.
Do customers prefer to receive their order as quickly as possible, even if they have to pay more? Or do they prefer to have free shipping, even if it means waiting a few extra days? There is no right answer, as it all depends on the type of product and the expectations and needs of each customer.
In this article, we'll tell you what international shoppers value most today, what the benefits of each option are, and how you can incorporate and balance both shipping options in your e-commerce business when making international deliveries.
Customer preferences: Fast shipping vs. free shipping
Not all customers are looking for the same thing. As we have said, priorities can vary depending on the type of product they buy, the urgency they have or even the region of the world in which they are located.
Product type
For example, if you sell electronic devices or accessories such as mobile phones or chargers in your online business, someone who has broken their phone and needs to replace it as soon as possible, will be willing to pay more for fast shipping.
On the other hand, you sell decorations, fashion or accessories items, customers usually choose to wait a little longer for their order to be shipped for free. According to a study by SpendMeNot, 79% of Americans believe that having the free shipping option increases their chances of making an online purchase.
Seasonality and region
The time of year also affects shipping preferences, for example last-minute holiday shopping, fast shipping is often the most popular option to receive gifts on time.
In some countries, customers are already used to international shipments taking several weeks due to international logistics procedures, so the fast shipping option is not a determining factor. When it comes to managing these procedures, having a logistics provider with customs services can reduce transit times and avoid problems and delays in cross-border shipments.
Benefits of offering fast shipping vs. free shipping for your
e-commerce business
When it comes to choosing between offering fast or free shipping, each option has its own advantages that can influence the customer's purchase decision.
Considering the benefits of each modality will help you decide which shipping strategy best fits your business needs and your customers' expectations.
Advantages of offering free shipping
- Increase conversion rate: by eliminating the additional cost, customers feel more incentivised to complete their purchase.
- Improves brand perception: free shipping can give the impression that your store offers better value for money.
- Encourages larger purchases: customers may be willing to add more products to their cart to get free shipping.
- Increase customer loyalty: offering free shipping on repeat purchases can incentivise loyalty and create repeat customers.
- Competitiveness: differentiating yourself from your competitors can be easier if you offer free shipping, especially versus those that don't.
Advantages of offering fast shipping
- Immediate satisfaction: customers who need the product urgently will value the speed of delivery much more, especially for all basic necessities.
- Improves customer experience: fast shipping reinforces the perception of efficient, high-quality service.
- Ideal for high-demand products: items such as tech products, limited editions, or new releases benefit from fast shipping, as shoppers want to receive them as soon as possible.
- Reduced cart abandonment rate: when customers see that fast shipping is an option, they may feel more comfortable completing their purchase instead of waiting.
- Advantage on key dates: on special days such as Black Friday, Cyber Monday or Christmas shopping, fast shipping and returns are options that cannot be missed.
Balancing fast shipping and free shipping in your e-commerce
Finding the perfect balance between offering fast shipping and free shipping is critical to keeping all customers happy without negatively impacting your online business.
Both options have their advantages and disadvantages, so the ideal is to implement strategies that allow you to offer the best of both worlds.
How to offer free shipping and fast shipping
Optimise pricing and logistics: adjust your product prices to cover free shipping costs and negotiate shipping rates with carriers to offer fast options at a reasonable cost.
Use strategic promotions: offer free shipping during key seasons or for purchases over a certain amount, combine both options in attractive packages, such as "fast and free shipping" to increase cart value.
Free shipping for members or subscribers: create a subscription programme where users pay an annual or monthly fee and in return, get free shipping on all their purchases.
Use a logistics provider: opt for providers that automate the shipping process, such as label printing, and take care of everything to reduce costs and delivery times, this will give you more flexibility. Some providers even allow you to integrate their logistics API directly into your e-commerce business.
Meet customer expectations: clearly communicate shipping times and provide flexible options during the checkout process, ensuring you meet promised deadlines to build trust and loyalty.
The key to combining fast shipping and free shipping in your e-commerce is to know your buyers and the type of product you sell. Also, remember to take into account the time of year or if you are offering any kind of offer or promotion.
The important thing is to find a balance that helps you meet the needs of your customers and meet their expectations while helping you maximise your sales, no one knows your online business better than you.