Back to the August 2007 issue.

Shipping Options Can Improve Ecommerce Conversion!

(by Peter Bohenek, President)

According to a recent study commissioned by the U.S. Postal Service, most buyers prefer retailers who offer more choices of delivery companies.

This is interesting - check it out!

Just like brands, shoppers have preferences when it comes to delivery companies. Preferences can be based on cost, convenience, and past experiences. This is an important realization, as research shows that providing customers with shipping options at checkout increases the probability they will complete the checkout process rather than abandon the transaction.

The Stats Say: By not offering a choice on delivery companies, you will lose 12% of your potential buyers, meaning that you stand to lose $1.2 million in revenue for every 100,000 customers who would have purchased $100.00 in goods.

The study also shows that offering only one delivery company does not provide customers with delivery cost alternatives, which causes some of them to abandon the transaction.

The Stats Say: 43% of online buyers abandoned the checkout process when only one delivery method was available. The primary reason was “the shipping was too expensive and there was no alternative to select from.”

The study looked at shipping in relation to returns. The findings are also very interesting and based on the primary reason people shop online: convenience. This means that when a customer receives an order and is satisfied with it, their expectations have been met. But when this is not the case, returns become a factor. Returns are a major consideration, as nearly 28% of online buyers have returned merchandise in the past year.

The Stats Say: Offering free shipping can boost favorability among customers by 13%. Basically three-fourths of online buyers said they would favor companies that offered prepaid returns.

Overall the study revealed that offering shipping choices to your shoppers could significantly boost online revenue and enhance the experience shoppers have with your brand. What’s more, shoppers clearly are looking for low prices and convenient delivery. The moral to the story: offer competitive shipping rates and choices of delivery companies. Furthermore, having a consumer friendly return policy is also very important.

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Statistics Corner

According to data released by Comscore, Latin America’s Internet audience exceeds 53 million, with Brazil at the top of the list.

68% of U.S. households with an annual income over $50,000 have broadband access according to Leichtman Research Group.

According to JupiterResearch, 22% of the earth’s population will surf the Internet regularly by 2011.

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