Why Businesses/Retailers offering Free Delivery are Winning

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If there is one thing that Covid-19 taught us, is how things can change drastically without warning. Covid-19 pandemic has made it prudent to rethink about how products are offered to customers. With more and more people preferring to shop online, free delivery has become the norm rather than exception.

Statistics have shown that free delivery can bolster sales by 90% when offered. This explains why many businesses are resulting to offering free delivery services. Some of the biggest household brands offering free delivery in Kenya include Jumia, Royal Mabati Mills, Carrefour, Copia, Domino’s pizza Kenya, and many others.

Logistics is one of the most expensive costs that most businesses must bear. Every business needs to put all other things into consideration before thinking of free delivery services. In the past, some brands have ceased to exist after executing these strategies poorly.

Here are things to consider before embarking on executing free delivery strategy;

  1. Does the company have the resources to cater for infrastructure to execute free delivery services
    1.  A business needs to determine if it has enough funds to buy vans and delivery trucks or even sought the services of logistics firms. A business also needs to consider the costs of constructing fulfillment centers in order to offer fast delivery.
  2. Whether to offer same-day delivery, early morning delivery, next-day delivery or a particular-day delivery.
    1. Depending on the infrastructure in place, a business can determine the kind of delivery services that works for them.
  3. Will the free delivery service apply to all sales or will there be a minimum purchase required for free delivery to apply?
    1. Many businesses and retailers employ the minimum purchase strategy to increase their sales and cover the delivery costs that are likely to be incurred. For example, purchases over ksh.5000 qualifies for free delivery.
  4. The geographical area that shall be covered by free delivery service.
    1. Will the free delivery cover a county, region, city or will it be countrywide? This will be an important decision to make depending on the funds available.
  5. How far a business must adjust their prices to cover for the logistics of free delivery.
    1. High prices as a result of free delivery can lead to reduced sales.

A lot of consideration is needed before embarking on Free Delivery. However, many odds are in favour of businesses that are offering free delivery. This is because more and more consumers are expecting free delivery especially when shopping online.

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