Welcome to Parcelconsulting
Welcome to Parcelconsulting
The ecommerce landscape has transformed dramatically over the years, with online retailers continuously seeking innovative strategies to optimize their conversion rates. Commonly overlooked is the immediate and long lasting effect that shipping rates and ecommerce return policies have on your overall ecommerce conversion rate optimization strategy.
The truth is that by offering cost effective, fast and efficient shipping combined with hassle free returns, you’re putting your online store in the best position to not only earn the sale the first time around, but well into the future. Keep reading for our comprehensive guide on why shipping and returns are integral to ecommerce conversion rate optimization.
Conversion Rate Optimization (CRO) is a process by which all online retailers must integrate a conversion plan of action that encourages users to click the buy button and complete the sale. This multifaceted approach involves optimizing various elements of your ecommerce store, from the website design and content to the user experience and shipping and returns policies.
Conducting and integrating your CRO is part of the bigger picture for your online store and your sales funnel efficiency model. This is why having a clear, customer-friendly shipping and returns policy can significantly contribute to achieving this goal.
In the era of Amazon and other ecommerce giants, consumers have come to expect fast, affordable, and reliable shipping. According to Forbes, 24% of all purchases are anticipated to be made online by 2026, and the convenience of shipping options is a major contributing factor to this trend.
Shipping has become a decisive factor in the online shopping experience. It’s not just about delivering a product to the customer’s doorstep. It’s about how quickly, affordably, and reliably you can do it.
In a survey conducted by AlixPartners and Rejoiner, 36% of online shoppers reported abandoning their shopping carts due to perceived high shipping costs. This highlights the critical role of shipping costs in the conversion process. Offering competitive, if not free, shipping options can significantly enhance your ecommerce store’s appeal and boost conversion rates.
While shipping policies play a significant role in the customer’s purchase decision, return policies are equally crucial. Being transparent about your shipping and return policy not only imbues and enhances customer trust in your brand, but also goes a long way towards earning repeat business, improving loyalty and retention.
According to a study by UPS and Forrester, 81% of customers agreed that a retailer’s return policy influences their purchasing decisions. Furthermore, 73% of customers reported that they are less likely to buy from an online retailer with a complicated returns process.
Shipping costs are a significant factor influencing ecommerce conversion rates. Not only do high shipping costs increase bounce rates and cart abandonment, but they contribute to lost future sales, too, when loyal shoppers return only to find out that your shipping rates are costlier than a competitor’s.
According to a study by Baymard, 48% of online shoppers abandon their shopping carts due to unexpected shipping costs. Moreover, another survey revealed that 90% of online shoppers consider free shipping as the most critical factor when shopping online.
Now that we’ve established the importance of shipping and returns in ecommerce conversion rate optimization let’s explore some practical strategies to leverage these aspects for increased conversions:
Free shipping is the most desirable for customers, but in some cases that may not be possible with your bottom line. Contact us today to learn about your options with consolidation and negotiated shipping rates — we have 20 years of helping our customers reduce shipping costs so they can offer free shipping and get more sales. Studies have shown that offering free shipping can increase conversions by encouraging impulse purchases and increasing the average order value.
Offering multiple shipping options can cater to the diverse needs and preferences of your customers. For instance, you can offer standard, express, and same-day delivery options. When you have the right shipping options available to you — like those we offer to all our valued customers — you can offer multiple shipping options that often can mean the difference between closing another sale or seeing your abandonment rate spike.
A clear and transparent returns policy can build trust among customers and encourage them to make a purchase. Make sure your return policy is clearcut, easy to find and makes senses to customers. More than 80% of them read it before buying, so don’t let return shipping costs hamper your ability to get more sales!
Make the returns process as hassle-free as possible for your customers. This includes providing clear instructions on how to initiate a return, offering free return shipping, and processing refunds promptly.
Part of your CRO plan should also rely on metrics that track customer behavior on your site. This can help you identify areas of improvement in your shipping and returns policies and implement effective strategies to optimize your conversion rates.
Always take a look at your shipping costs every quarter. There are many new options that different carriers roll out that you may be unaware of. These options often can slash your costs considerably and enable you to remain even more competitive in the online world. Got questions? We can help. Get your free shipping rates audit here!
Shipping and returns policies play a vital role in ecommerce conversion rate optimization. By offering competitive shipping options and a customer-friendly returns policy, you can enhance the customer experience, build trust, and ultimately, boost sales. Remember, the goal is not just to reduce costs but to provide value to your customers and foster long-term customer relationships.
In the dynamic world of ecommerce, staying ahead of the competition necessitates an ongoing commitment to optimizing your conversion rates. By focusing on improving your shipping and returns policies, you can make a significant impact on your bottom line and drive sustained business growth.
Ready to optimize your ecommerce shipping and returns? Visit Parcel Consulting for personalized guidance and solutions tailored to your ecommerce business.
