Did you know that the typical shopping cart abandonment rate for eCommerce stores goes up to 80%? The reasons behind their choice can be numerous, but additional shipping costs, slow delivery and other freight-related issues are right there at the top of the list.
With this in mind, it is evident that the success of an online store depends largely on how you organize the shipping process. The following article lists some of the most effective strategies which helped small and big eCommerce stores rise in the eyes of their customers, so you might consider implementing some into your business.
1. Free shipping
More than 60% of people will abandon the cart if they consider the cost of shipping to be way too high. In fact, 9 out of 10 consumers say that free shipping represents the #1 incentive to shop. Offering shipping of goods free of charge is a sure-fire way to persuade the customer to proceed with the purchase. Marketing your services by displaying free shipping banner on your website is bound to grab potential customers’ attention, ultimately affecting your sales and profit.
Determining whether your eCommerce store will offer free shipping or not depends on the niche you operate in and your margins. If you’re not in a position to offer free shipping for all orders, then consider setting the minimum order amount or minimum number of items a person needs to purchase in order to be awarded the free shipping option.
2. Flat rates
One of the strategies includes offering flat rates for every package, or for weight ranges and orders totals. However, this method in particular will require additional preparation, since you will have to determine what is the average cost of shipping a package. With this information at your diposal, you’ll be able to define the ideal price of shipping and not over- or under-charge the customer. The fact is, no one wants to stumble upon a cheap product online only to pay double for it because of the shipping. Some eCommerce businesses opt for USPS, since their services are extremely affordable and allow them to ship out multiple items for one flat rate no matter the overall weight.
3. Table rates
Table rate shipping is a bit more complex than flat rate. This method allows you to set complex rules for shipping your products globally. You can define multiple rates based on the destination, zone, product weight, class, price, etc. For instance, if you have a warehouse storage in Sydney, customers living in the area will be charged a certain amount, and the further you live from the fulfillment center, the higher the shipping rate will be.
4. Live rates
To offer your customers the best possible rates and still be able to cover your costs, you can opt for live rates directly from a carrier service. This way you’ll charge your customer the same you get charged by the third party. Though this might not be the best promotional tool as rates can vary depending on the order made by the customer and their locational distance from the warehouse, it’s still an effective strategy for those who are operating in competitive markets.
The bottom line
As an online store owner, it is of utmost importance that you find out the statistics about your products and the most adequate way to organize the shipping process. Whether it will be completely free or include flat rates depends largely on the industry you are operating in and the competitiveness of the marketplace. The researching phase will take time, however, the data you collect will help you establish the best strategy for your eCommerce business and achieve stellar success.