Remember the last time you made an online order: did you pay the shipping cost? As of late, it’s more likely that you didn’t, either because you deliberately skipped online retailers that didn’t offer free shipping or because the selected seller offered free shipping. The act of shipping factory-made or handicraft products for free is now common in e-commerce.
According to the research of Digital Commerce 360, 74.4% of businesses provide free shipping. This is the reason why several businesses insist on providing free shipping services to stay competitive in the market. Actually, it’s not suitable for every seller. In this blog, we will point out the significance of free shipping for B2B purchasing.
Was Free Shipping Always the Norm?
Unsurprisingly, the practice of free shipping was introduced by e-commerce behemoth Amazon in the early years of the 2000s. After 2 consecutive holiday seasons of giving free shipping to consumers who spend $100 or more, the company was thinking about making free shipping readily available to everyone, but it was expensive. Amazon started the offer known as “Free Super Saver Shipping” in 2002 on orders more than $25, $49, and $99. Ultimately, it turned into the membership scheme we are now familiar with: Amazon Prime.
Over the years, free shipping has had a strong influence on the e-commerce industry, as it encouraged customers to demand convenience and speed from web-based businesses, especially in wholesale craft supplies. It’s evolved to a basic marketing strategy and is, most of the time, an expectation of customers.
Zero at Checkout, But Not in Reality
It’s necessary to remind oneself that free shipping is literally what we stated above: a marketing strategy. There is no such thing as “free” shipping in B2B or B2C since there are always expenses associated with shipping products, whether for the first order or a return, defect, or exchange. Shipping costs, supplies, and even customs charges or import duties when shipping overseas all have to be accounted for by someone.
The truth is that either the brand contributes to the shipping or the customer does. Also, if the company offers “free shipping” and covers the cost, that lowers its profit margin. On the other hand, if the company asks the customer to pay for “free shipping,” then the shipping expenses must be in the sum of the price paid for the goods themselves. Now, the burning question for e-commerce firms is whether they should really offer free shipping or not. The second question is whether shipping should be covered by the display price that the customer pays or if it will be an additional cost.
Benefits of Free Shipping for B2B Procurement
It can be a very complicated topic to understand, so to make it simple for you, let’s discuss a few advantages of this marketing tactic in B2B:
1. It Drives Conversion Rates
As more than 65% of buyers find free shipping to be a major factor in making a purchase, next to price, offering free shipping can double the conversion rates of your online store. On the flip side, imposing shipping fees can increase cart abandonment. Based on Sendcloud research on European consumers, 65% of them abandoned the checkout page due to the high prices of shipping costs.
In simple words, by excluding postal fees, you eliminate the potential barrier to buying and motivate customers to make their transactions.
2. It Attracts New Customers
Free shipping plays a vital role in meeting consumer demand. For instance, when a potential buyer discovers that a product of wholesale home decor includes free shipping, it gets more appealing and lets them believe they are getting a better bang for their buck. To draw in more customers, businesses/brands have to at least live up to expectations.
The majority of consumers want shipping to be free if they spend a certain amount of money and also want free shipping for every type of online order; this can play an essential role in luring new customers to your online store.
3. It Fosters Loyalty and Repeat Orders
Once you successfully bring in new customers, it’s worth doing everything possible to maintain their trust. After all, retention is way cheaper than acquisition. For example, your business is associated with office decoration items. Think like a customer; they appreciate the total value they acquire with free shipping, which can ultimately lead to more shopping, which is a positive sign for your business.
Happy customers are loyal and much more likely to return to your store for more purchases and recommend your website to others. This impact is higher if your rivals do not provide free shipping.
4. It Rises AOV
In some cases, customers have to fulfill a minimum order value to be eligible for free shipping; this can encourage customers to add extra products to their carts. This increases the average order value (AOV) and maximizes your revenue. A survey conducted by Rakuten Insight found that 59% of respondents were ready to raise their quantity in order to be entitled to free shipping.
If you pla to provide free shipping, general industry advice is to determine a minimum threshold of about 15-30% above your AOV to tempt customers to fill their carts.
On a Final Note
Free shipping is a strategic tool in the B2B market. It makes budgeting easy, expedites decision-making, and builds long-term buyer trust. It’s time for businesses to review their shipping policies at key sales times and stages of growth. ArtistryBazaar sells high-quality artisanal and handmade products. We truly understand that clear, inclusive pricing—including free shipping—helps buyers focus on product value rather than hidden costs. In B2B, that mindset is becoming essential.