Structure and Optimise Your Shipping Rates Like a Boss

Structure and Optimise Your Shipping Rates Like a Boss

Anna Kowalska

It’s said that over half of customers abandon a cart before purchasing due to shipping costs exceeding their expectations. For the online retailer, there’s nothing more frustrating than this loss of confidence at the last minute. All that hard work to encourage the user along the buying chain turns out to be worthless as they click away just before hitting that all important ‘Pay Now’ button.

While it may seem like there’s nothing to be done for the additional cost of shipping, there are ways to optimise rates depending on your business. Not only will you solve that annoying shopping cart abandonment but you’ll be offering a more tailored service to your customer. They’ll appreciate the lower shipping costs and you’ll reap the rewards of increased conversions.

Utilise real time shipping quotes

For specialist retailers that sell large or wholesale items, offering real time shipping quotes could be a great solution. Make use of FedEx or UPS services that enable quotes to be generated on your site once the client has inputted what type of delivery they require.

According to the weight and intended delivery location, a professional quote will be generated. It puts all the blame onto the shipping company while giving further credibility and evidence that you aren’t over-charging on deliver for personal gain.

Offer free shipping

According to a recent study, 73% of buyers suggest that free shipping is their number one reason to purchase from a given site. That said, it may be worth taking the hit on the delivery charges for the major hike to conversions.

It may seem costly but try implementing free shipping that allows users to benefit only after they’ve spent a certain amount. Not surprisingly, this actually encourages users to purchase more in order to qualify for the delivery.

Keep it simple

Alternatively, the most simple approach after offering free shipping would be a flat rate charge. This is attractive to the customer as they understand the costs involved up-front from purchasing on your site. Hopefully, that should avoid any confusion when they finally come to pay.

That doesn’t change regardless of how much or how little has been added to their cart. Obviously, it’s important that this doesn’t impact margins too much, but again it may encourage users to purchase more than they would have otherwise when presented with fluctuating delivery costs.

Use a specialist exit app

Even after implementing one of the above, it can be beneficial to use an app such as Sticky Exit Offers which is accessible for Shopify users. This handy tool lets you create an attractive banner which pops up when the consumer is about to leave your site.

This can include an offer at your discretion whether it be free delivery or 10% off their first order. Using an exit offer such as this is said to increase conversions by at least 10%. It’s not only a tried and tested way to increase sales but also makes the customer feel valued too.