Shipping costs are still the number one killer in shopping cart abandonment. According to a study conducted by Forrester, 65% of shopping carts are abandoned. 44% of those are due to shipping costs. Further, 22% of shoppers abandon their carts due to shipping costs being hidden.
The amount of money these stores are losing out on is huge! So what can you do about it?
Due to the competitive nature of many large merchants such as Amazon, consumers now expect free shipping. TechCrunch states that 50% of all eCommerce stores now offer free shipping.
Consumers like to shop online for a few different reasons. One is that the web is convenient, we can shop in our pajamas on our couch if we want! Often times you can find products online that you can’t find in a physical store.
Shopping from home means we don’t have to spend the gas money or effort to get to a store, so it feels like we’re getting a deal. But, when you add in high shipping costs, the convenience isn’t there anymore, as we see from the Forrester stats.
Free shipping is the number 1 thing consumers look for when shopping online. In fact, consumers on average spend 30% more when free shipping is offered.
If you cannot offer free shipping all of the time, how about running free shipping sales? UPS states that many companies that offer free shipping once in a while boost sales by 10-20%!
Free Shipping Over a Certain Amount
Many stores are now offering free shipping on orders over a certain amount. In a study conducted by UPS we see that 3 out of 4 customers will add products to their cart in order to apply for the Free Shipping. If your store can’t outright offer free shipping, what about free shipping on orders over a certain amount?
If you can’t offer free shipping you have to lure your customers in by offering something other stores do not. Many companies have customer loyalty programs.
Free In-Store Shipping
Many stores that have both an eCommerce store as well as a physical store have invested in, free in-store shipping. You can order a product for free if the product is shipped to the physical store. When the product comes in the customer then goes to the physical store to pick up the item. This approach has led to many in-store purchases as well.
Flat Rate Shipping
Flat Rate Shipping means a fixed shipping cost on the entire order. You can specify a minimum and maximum order cost or weight to determine if an order qualifies for a flat rate. This is a great option for stores where the orders are quite large. Flat rate shipping encourages large orders and in many cases, customers will end up paying less shipping.
However, one problem that can occur with flat rate shipping is that it can be quite expensive for those who just want to make small purchases. you will need to do a bit of testing to figure out what your average cost of shipping a package will be.
Free shipping is a great way to promote sales. The stats are there, people love free shipping. Guaranteed there are sites that are similar to yours that are offering free shipping and if you don’t want to get left behind, you need to come up with a strategy to compete.