Are you a fan of cheap air freight? It’s affected various industries and also today’s business strategy model. Here are some of the main ways with Yair Hamami business strategy rules:
- Conversion Rates
Today one of the top issues related to online sales is conversion rates. This is also true regarding your company’s business strategy model. Companies are constantly looking for ways to improve their conversion rates.
There are several ways to improve your company’s conversion rates. They include an effective official website and marketing campaign. Another key method is by offering cheap or free shipping. In fact, some companies have reported huge boosts in their conversion rates when offering free shipping. That figure is sometimes as high as 50%. How would your company like to turn twice as many leads into sales?
- New Customers
Are you looking for new customers? A study in 2011 showed that there was nearly a 50% increase in new customers an online company acquired due to a special free shipping offer. Doubling your customer base would be worth shouldering your customers’ shipping costs.
- Sales Revenue
Studies show that offering free shipping, in particular, can boost a company’s revenue by 10%. This can affect your company’s policies including its business strategy model. It’s a big incentive for companies to offer cheap or free shipping.
Customers will be more likely to buy from your company if shipping costs are low. On the other hand, they might be hesitant to buy from your company if your shipping costs are average or higher. That’s even true if they like your company’s products. It’s all about the total cost of your company’s offerings. If the shipping costs are sky-high, then it could steer potential customers away.
- Online Shopping
You might want to include this issue in your company’s business strategy model. Due to the increase in online shopping, it might seem that it’s the first choice for most consumers. It’s not quite that simple. However, cheap/free shipping can encourage people to shop online.
In fact, a 2010 survey showed that nearly 95% of respondents were encouraged to do more online shopping simply because free shipping was offered. This is quite amazing and shows the importance of offering perks to customers whether they’re online or offline.
- E-commerce orders
This is a key issue that can affect your company’s business strategy model. It might be surprising, but many consumers still like shopping at brick-and-mortar stores. There are various reasons. It has a lot to do with the experience of shopping in a physical store.
However, one of the big factors is the high cost of shipping when placing online orders. One case study from Red Door Interactive showed that a free shipping special boosted e-commerce orders by about 90%.
That’s an incredible figure! In particular, consider that the company is selling the same products, but it’s just shipping them for free. That one change made a huge difference in the company’s online sales.
These are some of the benefits of low-cost air freight regarding the modern business strategy model.