A recent study analysed 10,500 shopping transactions in 30 online stores. It revealed that the most important feature that significantly improved the conversion rate was when a seller didn’t charge any shipping costs; it was the deciding factor for 34% of all users.
Whilst sometimes, if you’re shipping worldwide, delivery costs can’t be avoided, you should at least try to make sure that the available options are clear and easy to understand. The more complicated a shipping costs table is, the more likely a user is to cancel the checkout process and look for alternatives. Even the tiniest doubt or confusion can completely change customers’ decision, so make it easy for them to finish the checkout process.
If free shipping is a viable option for your business then we suggest trying it out, since it may significantly boost your conversion rate. Of course, free shipping doesn’t really have to be “free shipping,” at least not for you. But there are some strategies that can be adopted: a minimum order price or value, for example. But do not block the user from ordering if this minimum is not reached. Add a shipping cost and call it a “small-order fee,” then inform the user how much more they will need to purchase to qualify for free shipping.
Another idea: why not offer free shipping just for their first transaction? Look at it as an investment in gathering their registration information. Or decide on a certain time frame in which customers can qualify for free shipping offer and state it in an advert. The technique puts more pressure on the customer – but in a positive, money-saving way.
You simply have to calculate how much more overall revenue you can generate by dropping shipping costs. Try it out and you won’t be disappointed.