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Online salesNovember 12, 20265 min read

Free shipping: when it pays to offer it and how not to lose money

Few phrases persuade like 'free shipping'. Many customers would rather pay a bit more for the product than see a shipping charge at the end.

But shipping is never free: either the customer pays or you do. The key is deciding when it's worth absorbing.

1. Know your real shipping cost

Before offering anything, calculate what each delivery costs you on average: courier, packaging, and the time you spend. Break it down by zone, because delivering in your neighborhood doesn't cost the same as shipping to another city.

2. Choose the model that suits you

There are several ways to frame it, and they don't all affect your margin equally.

  • Free shipping above a certain order amount
  • Free shipping only in nearby zones
  • Shipping cost built into the price
  • A low flat rate for all orders
  • Free shipping as a promotion for a few days

3. Calculate the minimum carefully

The minimum should sit slightly above your average order so the customer adds one more product. Check that the profit on that order covers shipping: if your margin is 40% and shipping costs 60, a 400 order leaves 160 in margin and you keep 100 after paying for it.

4. Consider building it into the price

If you sell products with good margins and similar weight, you can add part of the shipping to the price and advertise delivery at no cost. It works less well with cheap products, where the increase is too noticeable.

5. Use it as a one-off promotion

Free shipping for a weekend or on special dates creates urgency without committing you all year. Measure how many extra orders it brought and what it cost before repeating it.

6. Communicate the conditions clearly

State the minimum amount and eligible zones somewhere visible in your catalog and in your quick replies. A customer who discovers the condition at the end feels misled. In Vallen you can keep that information in view next to your products.

Free shipping is a tool, not an obligation. With clear costs and a well-calculated minimum order, it can increase your sales and order size without taking your profit.

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