Amazon, an online marketing giant, announced earlier this week that it would start offering free shipping without requiring a minimum amount spent by the customer for all users in the US during the holiday season, Markottoch says. Previously, free delivery was received only by subscribers of the Amazon Prime program, who pay a fee of USD 119 per year. A few days earlier, the Target chain of stores also launched a free delivery program during the holiday season.
Consumer Intelligence research and analytics partners published a report last year, in which more than 100 million Amazon Prime customers spent $ 1,300 USD a year in the US, almost twice as much as $ 700 a year, issued by users who are not subscribers to the service. This may be due to the fact that they can afford to pay a premium of USD 119, but they also probably like to shop, knowing that they do not have to pay for delivery.
Free delivery is an excellent incentive for online customers. Nine out of ten indicate that free deliveries are the main reason for frequent online shopping, according to Walker Sands' report "The Future of Retail." Almost half of them also indicate that they believe that stocks on the same day are the reason for increasing online shopping.
The results of another study, conducted by Retention Science, suggest that people really choose free shipping at a discount. They probably perceive this as a more attractive offer that makes online shopping even smoother, just like a "click".
Of course, the process can be two-way. People who want to spend only a few dollars may be tempted to buy more to reach the minimum threshold of free shipping. Without the required minimum value, buyers will not have to pay extra for the delivery of goods.
Tom Kapporaso, CEO of Clarus Commerce, who works with companies offering bonus programs, summarizes the power of free deliveries as something "combining the power of satisfying the universal drive (getting something for nothing) with the satisfaction of a universal requirement (free)". / BTA