In 2025, free shipping isn’t just a bonus—it’s a necessity for online businesses. With rising competition and evolving consumer expectations, offering free delivery can transform your ecommerce strategy.
Let’s dive into ten significant benefits that free shipping can bring to your online business, backed by statistics and industry insights.
1. Free shipping attracts new customers
Free shipping acts as a powerful magnet for first-time buyers, drawing them to your store over competitors who charge for delivery. This benefit cannot be overstated in today’s competitive market.
- 66% of consumers expect free shipping on all online purchases.
- 62% of shoppers refuse to buy from retailers that charge shipping fees.
By prominently featuring free shipping offers, your store stands out in a crowded marketplace. When faced with similar products from different retailers, customers are more likely to choose the one that offers free shipping, even if the item itself costs slightly more. This psychological edge can be the difference between making a sale and losing a customer to a competitor.
2. Free shipping reduces cart abandonment
One of the most frustrating experiences for ecommerce businesses is cart abandonment. Unexpected shipping costs at checkout are the leading cause of this problem. By offering free shipping, you remove this significant barrier to purchase completion.
- Studies show that 48% of shoppers abandon their carts due to shipping costs that are too high.
- Retailers who offer free shipping see 10-20% lower cart abandonment rates compared to those who don't.
When customers know the total cost upfront, with no surprise fees at checkout, they’re much more likely to complete their purchases. This transparency builds trust and smooths the path to conversion, resulting in more completed sales and happier customers.
3. Free shipping boosts average order value
Free shipping doesn’t just help you close more sales – it can also increase the value of each order. Many shoppers are willing to add extra items to their cart to meet free shipping thresholds, boosting your average order value (AOV) in the process.
- An impressive 58% of online shoppers report adding items to their cart specifically to qualify for free shipping.
- Retailers implementing free shipping thresholds report seeing up to 30% higher average order values.
By setting strategic free shipping thresholds (e.g., “Free shipping on orders over $50”), you encourage customers to spend more to reach that magic number. This not only offsets the cost of shipping but can significantly increase your overall revenue per transaction.
4. Free shipping builds customer loyalty
In the competitive world of ecommerce, customer retention is crucial. Free shipping creates positive experiences that keep customers coming back, fostering loyalty and repeat business.
- 60% of consumers become repeat buyers after enjoying free shipping on their initial purchase.
- An overwhelming 93% of customers say free shipping makes them more likely to recommend a brand to friends and family.
Loyalty programs that include free shipping as a benefit can further strengthen these relationships. For instance, Amazon Prime’s free two-day shipping is a major driver of its success, with 78% of Prime members citing it as a primary reason for signing up.
5. Free shipping improves conversion rates
Free shipping simplifies the decision-making process for customers, leading to higher conversion rates across your ecommerce platform.
- Businesses offering free shipping see conversion rates up to 20% higher than their competitors who charge for shipping.
- 73% of shoppers say they are more likely to make a purchase if free shipping is included.
This effect is particularly pronounced among price-sensitive shoppers who prioritize the total cost of their purchase over individual item prices. By removing shipping costs from the equation, you make it easier for these customers to say “yes” to your products.
6. Free shipping meets modern consumer expectations
As ecommerce has grown, free shipping has shifted from a nice-to-have perk to a standard expectation among online shoppers.
- 75% of consumers now expect free shipping even on orders under $50.
- 81% of shoppers prioritize free shipping over fast delivery when making online purchases.
Failing to meet these expectations risks losing customers to competitors who do offer free shipping. In 2025, free shipping isn’t just an option – it’s a necessity for staying competitive in the ecommerce landscape.
7. Free shipping encourages positive reviews and referrals
Satisfied customers are more likely to leave positive reviews and refer friends and family to your business. Free shipping plays a significant role in creating these positive experiences.
- 84% of shoppers say they've made a purchase specifically to take advantage of free shipping.
- Positive delivery experiences, including free shipping, lead to 45% higher rates of social media recommendations.
Free shipping also reduces post-purchase complaints about hidden costs, improving your brand’s overall reputation. This word-of-mouth marketing can be incredibly valuable, driving new customers to your store at a fraction of the cost of traditional advertising.
8. Free shipping levels the playing field against retail giants
Small and medium-sized businesses often struggle to compete with ecommerce giants like Amazon and Walmart. Offering free shipping can help level the playing field, allowing smaller retailers to match the convenience and value proposition of larger competitors.
- 71% of eBay sellers use free shipping to attract buyers and compete with larger marketplaces.
- Local stores that implement free shipping see 15-20% sales growth by matching the policies of big retailers.
This strategy helps smaller brands build trust and credibility without the need for massive marketing budgets. By offering the same conveniences as larger competitors, you can win over customers who might otherwise default to more well-known brands.
9. Free shipping future-proofs your business
As ecommerce continues to grow and evolve, free shipping is becoming increasingly non-negotiable for online retailers who want to stay relevant.
- 90% of consumers say free shipping is their number one reason for shopping online rather than in stores.
- Retailers who don't offer free shipping risk losing up to 27% of potential customers to in-store alternatives.
By adopting free shipping now, you’re not just meeting current expectations – you’re preparing your business for long-term success in an increasingly competitive digital marketplace.
10. Free shipping increases profit margins over time
While offering free shipping does come with upfront costs, many businesses find that it pays off in the long run through increased sales volume and customer loyalty.
- Retailers report 10-20% revenue growth after introducing free shipping options.
- 37% of businesses see order values increase by $7 or more when they offer free shipping.
By carefully absorbing shipping costs into product pricing or setting smart order thresholds, businesses can maintain profitability while delighting customers with free shipping. Over time, the increased sales volume and customer loyalty can lead to higher overall profit margins.
Bottom line
In 2025, free shipping is a cornerstone of successful ecommerce. From attracting first-time buyers to fostering loyalty, its benefits are undeniable. While implementing free shipping requires careful planning—like adjusting product prices or setting minimum order values—the rewards far outweigh the costs. Start small, analyze customer behavior, and watch your sales soar!
