- Posted by conversadmin
- On April 17, 2015
- 0 Comments
Us internet shoppers really can be a fickle bunch sometimes. We want the right product, at the lowest possible price, delivered to us in a nano second and done so for free. But what if the retailer wants to charge us a few quid for delivery? To what extent does that put us off? A considerable amount by all accounts, stats show delivery charges kill conversions. Some say up to 55% of shoppers abandon the basket because of delivery costs.
When you’re looking at Conversion Rate Optimisation for retail this should be one of the highest impact tests. Studies have found that delivery costs not only weigh heavily on your visitors decision to purchase, but it also impacts consumer satisfaction. So when we’re looking at a test like this it’s important to measure both the immediate impact and the lifetime value of such a change. So while some retailers may say they are already subsidising delivery charges too much to offer free delivery, we need to carefully measure the long-term impact of the good will and brand satisfaction generated by doing so.
We need to remember that visitors are often weighing up the advantages of purchasing a particular product online vs. offline and offering free delivery makes the transaction more comparable to an offline purchase.
It’s on us
By offering free delivery we are making it easier for the visitor to make a decision, we need to remove the barriers in the purchase process and room for hesitation. It’s your way of saying to customer, “don’t worry about that, it’s on us”. It’s a similar approach with offering free returns; we are giving the visitor the confidence required to checkout. ao.com have got it right – free delivery, even on weekends? I’ll have some of that.
Shout it from the rooftops
Our approach to Conversion Rate Optimisation is to be as transparent with your site visitors as possible. When buying online no one wants unexpected surprises. If a customer is buying a £5 product you may not be able to offer free delivery, as that’s your margin out the window. But make the charges clear and relatively early in the purchase funnel; surprising users at the last step is a sure way to increase basket abandonment.
On the other hand, if you’re able to offer (or even better – test) free delivery then shout it from the rooftops! In a brand friendly manner of course. Get that message across loud and clear from the moment a user enters your site. It’s interesting to see that Clarks offer free standard delivery on all orders, except you’d hardly notice it in the discreet sub nav. It would be better testing that messaging in the promotional “20% off selected styles” banner
Compare that to Zappos who make it crystal clear. Free delivery is a big deal, make your message heard.
So who pays for delivery?
We get it, delivery is a costly process and someone needs to pay for it in the end. But where do you leverage those costs in your business? Of course Amazon have taken their own approach to this with their Prime membership. But that’s no good for SMEs. Our advice would be to test the long-term impact of offering free delivery, how does it impact LTV and brand loyalty? You may even find users spend more, in one study orders offering free shipping have an average order value 30% higher than those that charged for delivery. And of course what is the impact on your conversion rate?