Are you an ecommerce entrepreneur or planning to start an online store?
Does this story sounds very similar – “A new customer lands onto your online store, select the product after considering price and adds it to the cart. He proceeds to the ‘Checkout’ section and gets hit with the handling and shipping charges and reconsiders their buying decision.” And then – it is possible that they purchase the product reluctantly or abandon the shopping cart leaving you unhappy!
Moral of the story –a proper shipping strategy or lack of it can affect ecommerce sales in a big way. Here’s a lowdown at some shopping strategies and how you can use them:
Shipping Rates Affect Shopping Cart Abandonment Studies by North American Retail online survey demonstrates ‘high shipping and handling costs’ are the main reason for shopping cart abandonment. Hesitation and low prices on different sites are the next 2 big factors. The real challenge lies in devising a delivery strategy that would claim your customers to not destroy your margins
Some Popular Ecommerce Shipping Strategies Free Shipping Let’s start with the most surefire way to attract ecommerce customers, at least in the domestic market, Free Shipping. The challenge is – it can decrease your profits. However, it can give you an edge over rivals who don’t offer that, in terms of sales and marketing. Presently there are 2 angles in this strategy – you can either increase the cost of products slightly to recover the cost or retain the expense expecting higher sales. Consider both these techniques and utilize them over a regular period to see which one gets you better results.
One well-known way is to offer ‘free shipping’ with least order amounts or with minimum item numbers. That’s would attract average order value, sales value, and more benefits against which shipping cost can be balanced. Advertising ‘free shipping’ on your ecommerce website can drive up conversion rates to a considerable extent.