It is no secret that “Free Shipping” is the biggest motivator for online shops to get shoppers to buy. They have known for years that their Free Shipping offers have two significant effects, firstly for undecided shoppers, it can be the deciding factor. If you have been thinking about new gear for a while, these real savings on the cost of shipping are enough to make you press that buy button.
Free Shipping promotions are usually based on a minimum purchase value which induces that second effect. The majority of online purchases are low value purchases under $100 (ca. 75 Euros and 60 pounds), so creating a Free Delivery incentive for purchases above $99 makes shoppers add extra items to reach the quota.
Considering that the largest online retailers such as Wiggle and Chain Reaction Cycles each have an annual turnover in excess of $250 million each, the small increases in the average sale amount have a real effect on annual turnover.