DropshipTools

Back to Articles
Shipping 7 min read

How to Offer Free Shipping Without Losing Money

Advertisement Space

Free shipping can significantly boost conversion rates, but done wrong, it can destroy your profit margins. These strategies will help you offer free shipping profitably.

Build Shipping into Product Pricing

The most straightforward approach:

  • Calculate your average shipping cost
  • Add this amount to your product price
  • Clearly mark items as 'Free Shipping'
  • Best for: Products with consistent shipping costs

Minimum Order Threshold

Encourage larger purchases:

  • Set a minimum order value for free shipping
  • Make threshold achievable with 2 products
  • Display progress bar in cart
  • Best for: Stores with complementary products

Selective Free Shipping

Offer only on certain items:

  • Apply to lightweight, low-cost-to-ship items
  • Use for high-margin products
  • Feature free shipping products prominently
  • Best for: Mixed inventory stores

Membership Programs

Charge for shipping privileges:

  • Offer annual membership for free shipping
  • Include other perks to increase value
  • Use to build customer loyalty
  • Best for: Stores with repeat purchase potential

Regional Free Shipping

Limit to low-cost destinations:

  • Offer free shipping only to nearby countries
  • Use geo-targeting to display appropriate offers
  • Partner with local suppliers for faster delivery
  • Best for: Businesses with geographic concentration

Key Takeaways

The key to successful free shipping is ensuring your overall profitability isn't compromised. Test different strategies and use our Shipping Calculator tool to determine the true cost of shipping before implementing any free shipping offers.

Related Articles

Shipping

International Shipping: Best Practices for Dropshippers

Expanding internationally can dramatically increase your market size, but it introduces shipping com...

Read Article
Metrics

Calculating Customer Lifetime Value for Dropshipping

Understanding Customer Lifetime Value (CLV) helps justify acquisition costs and guides long-term bus...

Read Article