Free P&P is a shortened way of saying Free Postage and Packaging. This is where customers are given free carriage.
For E-commerce Companies especially, offering your customers Free Postage and Packaging can have numerous benefits.
Here are our 15 reasons why you should consider offering your customers free Postage and Packaging! We will also mention a few reasons why this might not be suitable for you.
Attract more customers: Everybody loves a freebie! Free shipping is a powerful marketing tool that can entice customers to make a purchase. With the ever-rising cost of living in the UK, free postage can encourage more customers to buy from you.
Increased conversion rates: Recent studies have shown that offering free shipping, even if there is a minimum spend for this, often significantly boosts conversion rates. This leads to more completed transactions.
Competitive advantage: If you sell your products for the same price as a competitor, but you offer free postage, customers are more likely to choose you over the competitor.
Increase your order value: Having free shipping on orders over a set price encourages a higher basket spend. A great example of this could be that if your product costs £8.99 and shipping for baskets under £15 costs £5.99, the customer is likely to add a second £8.99 product to their order. This is because the customer likes to feel as though they are getting value for money.
Reduced cart abandonment: Shipping costs are one of the most common reasons for cart abandonment. Offering free shipping often significantly reduces the number of abandoned baskets.
Improved customer satisfaction: Free postage and packaging will make customers feel valued, and satisfied. This is further amplified if the packaging is bespoke and high quality.
If you are considering offering free P and P, why not explore Springpack’s Bespoke Packaging Solutions. We can brand tissue paper, jiffy bags, postal boxes and more!
Positive brand image: Following on from using bespoke branded packaging, offering free shipping can contribute to a positive brand image. it works to position your business as customer-friendly, transparent, and of great value.
Repeat business: Satisfied customers are more likely to become repeat customers. Free shipping can contribute to customer loyalty, increasing the chances of future purchases.
Word-of-mouth marketing: Happy customers who are pleased with the shipping service often tell their friends about the service, leading to organic word-of-mouth marketing for your business.
Reduced customer service strain: Shipping-related questions and concerns can be reduced when you provide free postage and packaging. This allows your customer service team to focus on other important matters.
Streamlined checkout process: By eliminating shipping costs, the checkout process becomes simpler and quicker for customers. There is no need to install different shipping calculator plug-ins on your website. A quicker process means customers are also less likely to change their mind at the last minute!
International customer appeal: Since we left the EU, postage costs from the UK to the rest of Europe have increased significantly. Free shipping can be particularly attractive to international customers who might face high shipping costs. It expands your customer base and opens doors to new markets.
Increased customer trust: Free shipping, or advertising free shipping over a specified amount removes the element of surprise when it comes to additional charges. Even if the customer is not eligible for the free shipping, they do not receive a surprise.
Data collection opportunities: Offering free postage and packaging can incentivize customers to share their contact information, allowing you to build your customer database for future marketing campaigns.
Extra revenue for prepaid postage schemes: Prepaid postage schemes where the customer pays a fee for unlimited free delivery are often beneficial to business. A great example of this is Amazon Prime.
Why offering free P&P may not be for you
There is a cost involved to your business: Postal boxes, mailing bags, tape, void fill packaging and bubble wrap all cost money. On top of the outlay for the e commerce packaging, you will need to pay for delivery services. Offering free postage may not be cost-effective for you if you are a smaller business, or you do not have margins that can cover this.
Small orders may be encouraged: If a customer does not have to pay for postage they may be encouraged to do several smaller orders. Each small order will have a packaging and carriage cost, instead of one larger order.
Higher returns: offering free postage and free returns often leads to an increased amount of returns. These returns may not be delivered back to you in the same condition they left you in. Though, to combat this, returnable postal boxes are now available. These returnable mailing boxes protect your products on their way to and from the customer.
Overall, offering free postage and packaging for e-commerce companies can drive more sales, enhance customer satisfaction, and help build a strong brand reputation in the market. Branded e-commerce packaging such as returnable postal boxes.
If you are looking into offering free, and environmentally friendly postage and packaging, why not get some free advice with a Springpack Operational Packaging Audit?
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