{"id":3999,"date":"2020-09-11T17:40:06","date_gmt":"2020-09-11T15:40:06","guid":{"rendered":"https:\/\/capturly.com\/blog\/?p=3999"},"modified":"2024-02-09T15:40:17","modified_gmt":"2024-02-09T14:40:17","slug":"how-to-improve-your-conversion-rate-with-competitive-shipping","status":"publish","type":"post","link":"https:\/\/capturly.com\/blog\/how-to-improve-your-conversion-rate-with-competitive-shipping\/","title":{"rendered":"Conversion Rate Optimization with Competitive Shipping"},"content":{"rendered":"

Change of the retail landscape as an opportunity for e-commerce\u00a0<\/span><\/h2>\n

There is no doubt that the COVID-19 crisis and the resulting restrictive measures have changed and will further shape the retail landscape. In contrast to the general economic downfall of many retail stores, the e-commerce sector ostensibly benefited from the virus. This is mainly due to the masses of customers shifting online to shop for goods. This was already an existing trend that was now further accelerated by the ongoing crisis.\u00a0<\/span><\/p>\n

Despite this, many online merchants face the challenge of turning traffic into sales. More often than not, the reason for not turning traffic into sales<\/a> is cart abandonment – a term that every e-commerce entrepreneur learns to dislike. According to studies from 2019, <\/span>8 out of 10 people abandon carts when shopping online<\/span><\/a>. Companies lose <\/span>$4,6 trillion <\/span><\/a>in e-commerce sales per year due to this phenomenon. The number one driver for customers not completing the purchase process is <\/span>too high shipping costs <\/span><\/a>(50%). The second major reason for people to stop their purchase is <\/span>high product prices <\/span><\/a>(33%). Moreover, <\/span>slow shipping <\/span><\/a>(26%), intransparent shipping costs, and limited parcel shipping provider options also play an important role. For that reason, we will show you the <\/span>top 5 conversion rate killers <\/b>in the context of e-commerce shipping. Consequently, you can grow your business by <\/span>improving your conversion rate<\/a> with competitive shipping.\u00a0<\/b><\/p>\n

5 Conversion Rate Killers In E-commerce\u00a0<\/span><\/h2>\n

\"shopping<\/p>\n

Conversion Rate Killer #1 – Shipping Costs\u00a0<\/span><\/h3>\n

Customers nowadays are pampered by free shipping offered by large online retailers and companies like Amazon. Therefore, shipping<\/a> costs are the <\/span>number one reason for terminating the shopping process <\/b>with other online retailers. <\/span><\/p>\n

The vast majority of\u00a0<\/span>e-commerce shoppers say that shipping prices influence their shopping choices<\/a><\/span>. <\/span><\/p><\/blockquote>\n

Furthermore, customers tend to buy more often and have bigger basket sizes when shipping is free. That in turn, translates into an increased customer lifetime value. Also, <\/span>65%<\/a> of online shoppers say that they recommended online shops offering free delivery<\/span>. Of course, it can be hard for online merchants to offer free shipping. However, you should do everything imaginable to retain further shipping costs to a minimum. <\/span>Instead of offering \u201cpercent off\u201d you should offer free shipping <\/a><\/span>as, according to studies, customers find the latter twice as compelling. <\/span><\/p>\n

Thus, this will <\/span>render the conversion rate to improve<\/b>. Offering free shipping above a certain threshold could be an attractive solution for your webshop. That way you can nudge your customers into <\/span>increasing their average basket sizes. <\/b>That way you will most probably be able to keep a higher margin. In every circumstance, it is essential to communicate the shipping costs transparently. Unexpected shipping costs will inevitably lead to the frustration of your customers.\u00a0<\/span><\/p>\n

Conversion Rate Killer #2 – Slow Shipping\u00a0<\/span><\/h3>\n

\"international<\/p>\n

Fast delivery is no longer just an option, it is a must-have. 42%<\/a> of the shoppers state that they would be <\/span>more likely to shop online if there was a same-day shipping option, like last mile delivery<\/a><\/span>. Once again, Amazon set the bar high. People are used to receiving their packages two days after they clicked the purchase button. However, the importance of next-day and same-day delivery is growing rapidly. This is particularly true for the younger target group who <\/span>consider \u201cfast delivery\u201d to mean same-day delivery in 96% of the cases<\/span><\/a>. Online shoppers have high expectations and <\/span><\/p>\n

make no difference between a billion-dollar company or a medium-sized e-commerce retailer. <\/span><\/p><\/blockquote>\n

This is especially challenging for the latter. That is why it is crucial to work with fulfillment and shipping providers. These experts can help to fulfill the customers’ expectations more efficiently.\u00a0<\/span><\/p>\n

Conversion Rate Killer #3 – Intransparent shipping costs\u00a0<\/span><\/h3>\n

Not providing enough information about shipping costs and conditions is a huge turn-off for e-shoppers. <\/span>53% of US online shoppers won\u2019t purchase <\/span><\/a>a product if they don\u2019t know when it will arrive. Not knowing about the costs right away or being surprised by unexpected costs is even worse. The results can and will be bad reviews, complaints, and unfavorable word-of-mouth. For that reason, be sure to always make the information about shipping conditions easily accessible.\u00a0<\/span><\/p>\n

\"conversion<\/p>\n

One best-practice example of how to make shipping conditions transparent in a simple way is Gymshark. The rotating banner shows easy to understand information. By doing so, customers know about the key shipping conditions like shipping costs, free returns, free shipping when you spend at least $75. They can also get more information when clicking on it.\u00a0<\/span><\/p>\n

Your detailed shipping policy<\/strong><\/span> should additionally include information about:\u00a0<\/span><\/p>\n