SeeWhy, a company that specializes in e-mail published the results to a questionnaire that asked people, “Why do you browse an ecommence website and then choose not to buy? The answer to this question was most often, the cost of shipping is too high. Is reducing or eliminating shipping cost really a reason to lose customers? We don’t think so. The reasons people gave for abandoning the buying process are all things that can be fixed on your site or with a follow up strategy. In this series we will give you some strategies on how to pull abandonment problems out by the roots and guide your guest into becoming a paying customer.
The number one reason people abandon your site once they find something they like is because the cost of shipping is too high. If people are abandoning your checkout process after they have already been through every other step in the buying process-you’re actually very lucky. You already invested a lot of time and money to get people to land on your site through your hard work in PPC, SEO, social media, offline advertising, etc. You convinced them they wanted or needed what you are selling. You negotiated a price point that your guest was comfortable with. They found your site and brand trustworthy. Now, after all those hurdles, its shipping prices that kill your relationship with the customer? Time to think again.
Before you offer a solution for your shipping problem, make sure you understand the psychology of the problem. If you test a free shipping offer, do your conversions increase enough to give you a higher ROI? Maybe you need to dig deeper and find out if certain segments of traffic are more price sensitive and willing to abandon their purchase when they see your shipping prices. Does lowering the price have a better, worse, or similar effect on your bottom line as offering free shipping? Test what shipping price visitors are most comfortable with and you can even be so bold as to test this with different segments of traffic that you’ve been able to identify.
Also, by understanding the different segments of visitors that you’re getting, you can figure out how to most effectively present your shipping options.
*If your ROI sky rocketed after you offered free shipping, you should offer it continuously and advertise it well site wide to all segments.
*If it didn’t have the impact you were expecting, you could try testing it with specific segments of traffic only that you feel it will have the most impact on.
*If it made some difference, but still not the results you think it should have, maybe you should adjust your approach and charge regular shipping, but then deliver a pop-up with a code to get free shipping if a visitor abandons the checkout process on the page where you present shipping prices.
*If you are sure that your product will produce repeat customers, offer free shipping on the first order and then make up the difference on future orders.
Now that you know how to reel in customers that are turned off by your shipping cost, implement some of the strategies to increase your ROI! The next post in this series will cover how to help people who are comparison shopping complete an order on your site. If you need help recovering lost leads because of high shipping costs, get in touch with us and we can help you figure out how to collect all of the bucks you accidentally threw out the window!