The eCommerce Myth That’s Costing You Profits 🛑

In partnership with

2025 Prediction: A Surge of Self-Serve CTV Buyers

Roku predicts that 2025 will be a breakthrough year for self-serve CTV advertising. Roku Ads Manager makes it easy to integrate CTV into your 2025 marketing mix. Easily segment your target audience, optimize campaigns in real-time, and drive conversions with interactive ad formats and shoppable ads with a Shopify integration. Roku Ads Manager makes CTV advertising accessible and impactful for businesses of any size.

Discover CTV performance on Roku

The Free Shipping Myth: What eCommerce Owners Get Wrong

For years, the idea of offering “free shipping” has been marketed as the ultimate strategy to win over customers. But here’s the truth: Free shipping can hurt your profits if not managed correctly.

Before you gasp and abandon the idea entirely, let’s flip the script. Instead of looking at free shipping as an expense that eats into your margins, see it as a strategic tool to encourage smarter spending behavior from your customers.

Why Free Shipping Isn’t Always Free for You

When you absorb the cost of shipping without factoring it into your pricing or strategy:

• Your profit margins shrink. Every sale becomes less profitable, especially for low-ticket items.

• You set unrealistic expectations. Customers may come to expect free shipping on every order, regardless of its size.

• You lose leverage. Free shipping becomes the norm, rather than a strategic incentive to increase sales.

The Free Shipping Fix: Turn It Into a Profit Driver

Here’s how to make free shipping work for your business instead of against it:

1. Set Minimum Order Thresholds

Instead of offering free shipping on all orders, require a minimum spend to qualify. For instance:

• “Free shipping on orders over $50!”

This encourages customers to add more items to their cart to hit the threshold, increasing your average order value (AOV).

2. Bake Shipping Costs into Your Pricing

If the cost of shipping is eating into your profits, account for it in your product pricing. Example:

• If shipping averages $5 per order, increase your product price by $2–$3. Customers perceive “free shipping” as more valuable than a slightly higher product price.

3. Reserve Free Shipping for Special Events

Instead of offering it year-round, make free shipping a limited-time perk during sales or holidays. This creates urgency and makes customers feel like they’re getting an exclusive deal.

4. Offer Free Shipping for Loyalty Members

Reward your most loyal customers by making free shipping a benefit of your VIP or membership program. This fosters repeat business and builds long-term customer relationships.

Why This Matters

Free shipping is a double-edged sword. Without strategy, it can become a drain on your resources. But when used strategically, it can:

• Drive higher cart values.

• Encourage repeat purchases.

• Enhance your brand’s perceived value.

Real-World Example: Turning Perception into Profit

An online fashion boutique struggling with razor-thin margins introduced a $75 minimum for free shipping. Almost overnight, their AOV jumped from $55 to $82, as customers added extra items to qualify for the perk.

By simply restructuring their approach, they transformed what was once a profit-eater into a revenue-booster.

Take Action Now

Don’t let free shipping sink your profits. Use it as a tool for growth, not an unchecked expense. Explore more strategies to optimize your eCommerce business today!

Learn More eCommerce Growth Hacks Here.

About Working Rich Class

Helping entrepreneurs rethink conventional business strategies to unlock growth, profits, and freedom.

This fresh perspective on free shipping can shift your mindset from viewing it as a cost to leveraging it as a strategic asset. Let’s redefine how you grow your eCommerce business—one smart decision at a time.