Amazon has recently dispatched an E-mail to the merchants with the subject line “Facts and Myths about Free Shipping” encouraging the sellers to offer free shipping to the customers
“Ever considered how your business could grow with Free Shipping?” the email asked recipients. “We all know that customers love Free Shipping, and your business could love it too!”
Amazon went on to bust some myths of the sellers around free shipping and help them decide better for their business.
Myth 1: Free shipping won’t lead to more sales
Fact: Free shipping typically increases sales by 9.2% on average
Myth 2: Customers only care about lower product prices, once they select an offer they won’t care about shipping fees
Fact: Additional fees is #1 reason for abandoning cart
Myth 3: Free Shipping doesn’t make sense with low priced products
Fact: 50% of Products on Amazon priced between $0 and $5 have Free Shipping
Myth 4: Money is better spent offering discounts and promotions
Fact: 93% of customers prefer Free Shipping over discounts
Amazon then proceeds on advising the sellers on how they can set their settings from standard shipping to free shipping.
The response has been
What are your thoughts on sellers offering free shipping to their customers? Also how will free shipping help sellers who sell their products at low prices?