Increasing E-Commerce AOV with Free Shipping

People love free shipping. It’s simply a fact. It makes people feel like they are getting a great deal and creates a positive customer experience. Having a free shipping minimum order value is a proven way to drive customers to spend more than they may have originally intended, and is a great tactic to optimize your e-commerce conversion rates and AOV. According to a BigCommerce Study* of over 3,000 participants, 84% of respondents have added items to their cart in order to receive free shipping. Taking it a step further, this study found that almost 90% of Millennials and 85% of Gen Z participants added items to their cart in the last year simply to hit a free shipping minimum, with many doing this regularly. 

84%* of respondents made a purchase online specifically because they offered a free shipping option.

Offering free shipping on every order isn’t a viable option for many businesses, especially for smaller businesses operating on smaller margins. And these is really no need to. Simply offering free shipping on orders over a certain amount will not only save you money, but is a proven way to increase your average order value and cover the cost of the shipping. Average order value is a fundamental metric that translates into overall sales, and increasing existing customer AOV means you can increase your overall revenue without even needing to spend more on marketing to attract new customers.

Think about it, we’ve all run into this scenario. You get to checkout and see a $5.99 shipping rate 🙁. But wait, if you add just $10 more worth of products to your cart, you’ll get free shipping. While the $10 is clearly more than the $5.99 shipping rate, the perceived value of spending just a bit more on products feels much higher if you get free shipping. It’s a simple psychological trick that really works, and feels like a no brainer as the shopper every time.

Maven WebChat helps you capture sales and increase order value with a free shipping upsell automation. After adding products to cart, our bot will automatically let your customers know if free shipping is available, and how to qualify for it at checkout. Simple as that. You don’t have to lift a finger. 

There are numerous other ways to increase your AOV aside from offering free shipping for orders over a threshold amount. Some of these other tactics include:

  • Buy more, save more tiered discounts (for example, 15% off orders over $50, 20% off orders over $100)
  • Free gift with purchase over $XX
  • Bundling discounts
  • Cross-selling & upselling add-ons for complementary products (especially on product pages or at check-out)
  • Offer a yearly free-shipping subscription plan 
  • Offer expedited shipping on orders over $XX
See Maven WebChat's free shipping upsell automation in action here.