How Offering Cheap Shipping Options Increases Ecommerce Sales

With millions of ecommerce sites all competing for customers’ business, it’s a jungle out there online. One mistake that you can’t afford to make is alienating your customers. Since shoppers have virtually unlimited choices that they can make at any online store, it’s important to be mindful of what might deter a conversion or a sale.

 At the top of the list of the reasons why people abandon online shopping carts is actually the cost of shipping. The prices that you are charging for shipping, the speed at which the items are delivered and the available expedited options will all factor into your conversion rate.

 Thankfully, a number of studies have been conducted in recent years that can help us examine this critical link. Keep reading to find out why and how shipping prices can impact your online sales. All that may be necessary on your part is to make a small tweak or two to your store to help decrease shopping cart abandonment rates across the board.

The Link Between Shipping Prices & Shopping Cart Abandonment

 There is a discernible link between shipping prices and shopping cart abandonment rates. A recent study found that over 87 percent of all shoppers have stated that they’ve left or abandoned a shopping cart in the past year after seeing that the cost of shipping was too high for them to stomach. Bear this in mind when setting your economy shipping prices.

How Offering Cheap Shipping Options Increases Ecommerce Sales

 Delivery Time Also Factors In

 Prices matter, and being able to offer cheap shipping options for your customers is important, too. But delivery time is also a factor as well. Studies show that over 75 percent of shoppers will select the standard ground delivery option (about eight to 10 days by ground). However, over 66 percent of all shoppers want to be able to make the choice between standard ground and expedited shipping options.

 Most Shoppers Want Free Shipping

 While cheap shipping options are important to offer when trying to increase conversions and online sales, free shipping is by far the most popular option. Over 83 percent of customers polled in a recent white paper stated that free shipping was a primary factor in them doing business with an ecommerce store.

 There are ways that you can offer free shipping by making some slight adjustments to your prices and shipper accounts to help reduce the cost that you must absorb into your bottom line. Primary considerations include: increasing product price, absorbing half the shipping cost or even looking into bulk cheap shipping options that can reduce price and make it more feasible for your operating budget.

 A related study found that more than 67 percent of shoppers would recommend a store to another person if free shipping was offered. What’s more, is that 59 percent of people say that if the cost of shipping is too high, as it compares to the value of the product being sold, that they would be prone to give a negative recommendation.

 Fast Shipping is Popular

 The faster you get products shipped to customers, the happier they will be. After all, nobody is fond of the long waiting period that commences after they excitedly order a product from an online store. Most people shop online out of the convenience, the selection and the lower prices. And 68 percent want the ability to expedite the delivery of their package (if they so desire); even if they will only expedite those packages about 22 percent of the time, according to recent studies.

Stating Shipping Costs Upfront

 Another common factor that can contribute to shopping cart abandonment is the checkout process. Polls have found that shoppers want the cost of shipping stated upfront during the checkout process. This helps them better determine what the purchase will actually cost them when all fees are tallied up. Make sure your shopping cart states this cost early, so you can appeal to the 22 percent of shoppers that want to know what they’ll pay for shipping right away.

 The Final Scoop 

As you can see, shipping prices are intrinsically linked to shopping cart abandonment or healthy conversions. Naturally, as an e-retailer, you are going to want to shoot for the greatest conversion rate as possible. By using the aforementioned ecommerce shipping statistics to your advantage, you can turn the tables in your favor and enjoy a steadier stream of online sales. If you are looking for more statistics, make sure you check out this report on online shopping facts from 2014.

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