Thursday 26th July 2018
4 Ways to Optimise Your Delivery Offering to Improve Conversion Rate
In 2018, cart abandonment rates in online retail hovered around 75%. Even when accounting for the fact that 34% of shoppers use the cart as a tool during the research and comparison phase of shopping, the numbers still suggest that improving conversion rates remains a significant challenge for retailers.
Decisions about the ‘last-mile’ can have a real impact on cart conversion rates, with 23% of people saying that issues with shipping were the factor that caused them to abandon their cart. With almost 1 in 5 potential customers abandoning a purchase before completion due to inadequate delivery options, optimising their delivery offering should always be a priority for retailers.
Below, we list four things you can do to improve the delivery experience at checkout and boost your conversion rate in the process.
1. Give customers as much flexibility and control as possible
The ecommerce world reflects the convenience-driven society we currently inhabit, and across industries we see that consumers increasingly expect to be able to access goods and services on their terms, in a manner that fits their lifestyle.
Having to wait in for a parcel, or getting up early on a Saturday to retrieve a missed delivery falls far below the level of service a customer expects. Adding a new dress to your cart might be easy, but if you’re spending days trying to track down a missed parcel, the hassle quickly outweighs the convenience.
What you can do:
Giving customers the option to select the delivery method that is most convenient to them is key to convincing shoppers to complete a purchase.
Shoppers expect to be able to personalise most experiences online - so why not their delivery? For example, having access to next-day or 48 hour delivery is largely meaningless if a person knows they will not be at home to receive it. By combining next day with local collection, customers are able to receive the exact delivery they expect. Customer satisfaction can be provided on both speed and location, without prohibitive costs.
Customers today are more sensitive than ever when it comes to costs around delivery. E-commerce giants have set the standard for what constitutes good delivery, and usually that means fast and free.
However, attempting to fulfil both of these requirements can come with a hefty price tag for retailers. Whilst it can be challenging to try to match the delivery promises of big players such as Amazon and ASOS, insisting oncharging for shipping to recoup costs can have a negative impact on conversion rates.
What you can do:
Occasionally, it might still be necessary to pass on the cost of delivery to customers for the most expensive shipping methods, but pricing needs to be clear and consistent and should not be hidden until shoppers reach checkout.
It’s worth considering that customers don’t always choose next-day or weekend delivery because they need their items faster, but rather because they know they will be at home then. Enabling customers to pick-up items from a local Collect point for the same flat or free pricing as standard delivery could be an additional way of improving conversion rates. In fact, studies show 76% of consumers cite shipping costs as a reason for using Click and Collect. Free shipping gives customers an extra incentive to complete their purchase and help retailers save money from more expensive delivery options.
3. Build trust and assurance into your delivery process
46% of people say that they’ve abandoned their carts due to delivery concerns - if you had any worries over whether you might receive a parcel, especially if its arrival is time sensitive, you would be unlikely to risk placing an order.
Particularly when it comes to the first order experience, it’s important that customers know when, how and where they will receive their orders.
What you can do:
Having clear and consistent signposting across all of your pages is one way of reducing these fears. On the homepage, special delivery options such as free next-day delivery or Click & Collect should be clearly promoted.
The earlier a customer knows about what delivery options are available to them, the less likely you are to lose someone for whom this might be a priority when deciding to place an order.
Additionally, delivery options that guarantee a customer will be in to receive the parcel, whether that’s offering weekend delivery or pickup from a local collect point or locker nearby, are key to minimising any lingering worries they might have about missing their parcels.
Customers will always be naturally inclined to follow the path of least resistance, which is why it’s crucial to remove as many points of friction as possible from the checkout process.
Having to fill in long forms, consent to additional features or input information needlessly can frustrate the user, and cause them to abandon checkout. In fact, as many as 20% of people end up abandoning their carts at the stage where they need to submit their delivery details, which is particularly telling.
It’s simple: the faster the better. Studies show 88% of consumers cite speed as a reason for using Click and Collect because it allows them to check-out on a website with ease.
What you can do about it:
Offering Click & Collect from a local collect point can be one way of reducing this friction, as it eliminates the need for customers to manually enter their delivery details, instead selecting their preferred location from a map and having these details entered automatically.
In 2018, there is convincing evidence that optimising your delivery offering will have a positive impact on your conversion rates. Offering cost-effective, convenient delivery options benefits both customers, who are able to access the services they want and retailers, who see improved cart conversion rate and improved customer loyalty as issues surrounding delivery become less frequent.
HubBox is a leading software-based Click & Collect provider working with clients across the UK to offer local and in-store Click & Collect. We are the first solution that allows retailers of any size to implement Click & Collect without making any changes to their couriers or fulfilment process, and specialise in accessible and speedy integrations. Our solution is available as an easy-to install app on Shopify, and used by leading Shopify retailers including Lavish Alice, Skinnydip and Maniere de Voir, as well as high-street names such as Jack Wills, Warehouse and HMV.