Cart abandonment can be incredibly frustrating for eCommerce retailers. Not only do you lose the sale and the customer, you could potentially lose money if the customer found you through advertising on social media or Google Adwords.
While cart abandonment campaigns can be useful, they can only bring potential customers back and don’t target them at the initial moment of purchase. Delivery options are an underappreciated but important element of your eCommerce strategy when it comes to reducing cart conversions. Let’s look into why.
What is cart abandonment?
Cart abandonment is when a customer adds items to their online shopping cart but, for one reason or another, doesn’t follow through with the purchase.
A lot of cart abandonments are unavoidable, after all, eCommerce has made window shopping easier than ever. For more serious shoppers, cart conversion is often impeded by unexpected shipping costs, unsatisfactory delivery options or a confusing check out process.
Shoppers are more likely to buy when they are offered free shipping, even if the item is slightly more expensive. Free shipping eliminates pricing shock as a contributing factor in shopping cart abandonment.
How can you offer free shipping without eating into profits? Increased sales from offering a free delivery option can significantly offset the cost. Other ways to offer free shipping include:
- Above a certain spending threshold.
Eg. Free shipping on orders over $50.
- For particular delivery areas.
Eg. Free shipping for Australian metro areas.
- As part of a promotion.
Eg. Free shipping on your first order.
A great side effect of offering free shipping above a certain spending threshold is that many shoppers are encouraged to spend slightly more to reach the required amount.
When free shipping isn’t an option
Sometimes free shipping isn’t viable for your business. In these cases, the best delivery options really depend on your product and the needs of your customer base.
Flat rate shipping has the advantage of avoiding unexpected costs, especially if you let your customers know before they get to the check out page.
Live quoting shipping rates can be tricky as it can be more expensive than a flat rate in some situations. However, it is especially good for allowing customers to compare the cost of various delivery times.
The power of choice
The best delivery option is lots of options. Let your customers select the option that best suits their schedule and budget. Alongside price, the speed of delivery is a major contributor to online shopping cart abandonment. There’s no point in buying something that might not arrive in time for it’s intended use.
It can be difficult to offer a wide enough selection of delivery options at an acceptable price if you’re only using a single delivery service. Multi-carrier shipping is a great solution here, as different couriers are best suited to different services such as express, same-day or bulky freight, you can pick the company that offers the best price for each individual consignment.
Returning a delivery
Cart abandonment can increase when the returns process is difficult or expensive, particularly when fit is a consideration. Having a clear and easy to navigate returns policy increases cart conversions by giving your customers peace of mind.
Designer clothing hire business GlamCorner has a return built into every sale. Using Shippit, the company ensures that returning garments is a foolproof process. They were able to offer their customers the reassurance of a simple returns process without letting shipping costs get out of hand.
Reducing cart abandonment is all about meeting your customers’ price and delivery expectations while reducing checkout confusion. Do this, and you’ll be well on your way to increasing sales.
You’ve learnt how to increase cart conversions, now delight your customers with our eBook on creating great customer experiences through shipping.