Level Up your eCommerce Shipping and Shopping Experience

A few months back I sat down with Jon Nordeen , a senior retail executive and ex-CIO from Kohl’s and Hudson's Bay, and Suranjan Pramanik discussing how leveraging shipping information can improve both the top-line revenue and cost management for e-commerce retailers.

Below is a quick summary of the discussion that many may find useful. Also, here is the recording in case you are interested in watching the discussion

Reducing cart abandonment with personalized shipping experience on checkout

Key Challenges in E-Commerce:

• Low Conversion Rates: Average conversion rates are around 2.5%.
• High Cart Abandonment Rates: Averaging over 70%.
• Increasing Shipping Costs: A significant expense in e-commerce.

Improving Conversion Rates and Reducing Cart Abandonment:

• Shipping as a Key Factor: A large factor in cart abandonment is shipping. Customers often add items to their cart without knowing the total cost, including shipping, which is revealed only at checkout.
• Fenix Solution: Fenix allows retailers to inform customers about the product price, shipping costs, promotions, and expected delivery dates right on the product page. This transparency can potentially reduce cart abandonment and increase conversion rates.

Impact of Providing Shipping Information Upfront:

• Positive Influence on Conversion Rate: Displaying estimated delivery dates and shipping costs earlier in the shopping funnel has shown to significantly improve conversion rates from product page to cart.
• Reduction in Cart Abandonment Rates: With clearer expectations set early, overall cart abandonment rates are lower.
• Shift in Shopper Behavior: Shoppers appreciate transparency and visibility, leading to more informed decisions and reduced surprise at checkout.

Case Studies and Data:

• Increased Conversion: One of Fenix’s clients saw a 20% increase in conversion from product page to cart and a total funnel conversion increase of up to 40%.
• Shipping Upgrades: About 10% of shoppers were willing to pay for shipping upgrades, directly impacting the bottom line.
• Average Order Value (AOV) Increase: Tests showed that AOV can increase by exposing delivery dates, with one example showing a 6% increase in AOV.

Using Shipping as a Promotional Tool:

• Shipping Revenue to Offset Costs: Enhanced shipping options can drive additional revenue, helping to offset shipping costs.
• Shipping Promotions to Drive Product Sales: Shipping promotions, when displayed upfront, can entice customers and improve product sales.

The webinar emphasizes the importance of integrating shipping information early in the shopping process, outlining its significant impact on conversion rates, cart abandonment, and AOV. Fenix’s approach aims to enhance the customer experience by providing transparency and clarity, ultimately benefiting both the retailer and the consumer in the e-commerce landscape.

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