How shipping cost and speed affect sales
How shipping cost and speed affect sales
Today on the Selpway Trading blog, we're talking about how product delivery affects sales. Specifically, we'll talk about several scenarios that entrepreneurs can apply to their online shops.
The closer the customer, the cheaper the shipping
The first basic scenario: the closer the customer is, the less they have to pay for shipping. Logically, the cost of delivery within one city will be less than from one locality to another. This is a classic scheme that is used in the vast majority of online shops. However, it can be modified: make the cost of delivery slightly lower than your competitors. You will be paying a little extra for the customer, but such a step can help to increase sales. All things being equal, customers will buy where the cost of the entire purchase including delivery is lower.
The lighter the order, the cheaper the delivery
The essence of this approach is to differentiate the cost of delivery depending on the weight of the purchase. Suppose one customer buys a computer and another only a keyboard. In the traditional approach, both will pay the same amount for shipping. If you introduce gradation, the customer buying the computer will pay more, for example 10 euros. Against the total purchase price, the delivery fee will not look large. Similarly when buying a keyboard. If a person has to pay 1 euro for its delivery, he will not consider it expensive. Customers will be more loyal to such delivery prices. Due to this you can achieve an increase in the number of orders.
The first basic scenario: the closer the customer is, the less they have to pay for shipping. Logically, the cost of delivery within one city will be less than from one locality to another. This is a classic scheme that is used in the vast majority of online shops. However, it can be modified: make the cost of delivery slightly lower than your competitors. You will be paying a little extra for the customer, but such a step can help to increase sales. All things being equal, customers will buy where the cost of the entire purchase including delivery is lower.
The lighter the order, the cheaper the delivery
The essence of this approach is to differentiate the cost of delivery depending on the weight of the purchase. Suppose one customer buys a computer and another only a keyboard. In the traditional approach, both will pay the same amount for shipping. If you introduce gradation, the customer buying the computer will pay more, for example 10 euros. Against the total purchase price, the delivery fee will not look large. Similarly when buying a keyboard. If a person has to pay 1 euro for its delivery, he will not consider it expensive. Customers will be more loyal to such delivery prices. Due to this you can achieve an increase in the number of orders.
Who doesn't pay, waits longer
Customers don't like to wait long. Therefore, the speed of delivery is very important. Offer several delivery options to choose from. So that users who want to get their purchases faster have this option. And users who choose free delivery - understand why it's worth waiting a little longer.
Customers don't like to wait long. Therefore, the speed of delivery is very important. Offer several delivery options to choose from. So that users who want to get their purchases faster have this option. And users who choose free delivery - understand why it's worth waiting a little longer.
Free delivery by conditions
Now let's consider the conditions under which a customer can get the purchased product for free. In your online shop, you can apply several approaches:
Delivery allows a person to save time, money, effort and nerves. Its conditions and quality is an important circumstance when choosing an online shop. Therefore, entrepreneurs should pay a lot of attention to this part of the company's work.
Now let's consider the conditions under which a customer can get the purchased product for free. In your online shop, you can apply several approaches:
- Free shipping from a certain order amount. This condition encourages the customer to increase the amount of the order, so it affects the average cost of the order in your online shop. This is favourable for both customers and sellers.
- Free shipping when ordering accessories or related products. This option helps to increase the average cheque due to the number of products sold. For example, a customer buys a mobile phone. Together with it, he orders a car holder and a case. The online shop earns more money, and the customer gets the goods delivered free of charge. Both sides of the transaction are satisfied.
- Free delivery of certain groups of goods. If you want to stand out from your competitors, you can implement free delivery on certain groups of goods. For example, it can apply to goods with a large margin. Your earnings on them will recoup the cost of delivery. And the opportunity to get the product for free will attract more customers.
- Free delivery to new/old customers. Such a condition can be either promotional or permanent. It can be used to attract new customers and to increase the loyalty of old customers. For example, free shipping can apply to every third order in your online shop.
Delivery allows a person to save time, money, effort and nerves. Its conditions and quality is an important circumstance when choosing an online shop. Therefore, entrepreneurs should pay a lot of attention to this part of the company's work.