The Effect of Shipping Costs on Customers: By the Numbers

Everyone LOVES to see free shipping for their product. To many customers, free shipping signifies less fees, less hassle, and a more trustworthy seller. To some consumers, vendors who sell with large shipping fees may appear sneaky and give the impression that they’re only after a larger share of your wallet. Here are a few statistics you should know when deciding on a shipping and pricing strategy for your business.

By the Numbers

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95% of eCommerce shoppers say that shipping prices impact their shopping decisions. 64% say that shipping prices greatly impact their decisions, and 34% say shipping prices somewhat impact their decisions. This statistic shows the importance of shipping costs to an average eCommerce customer. Obviously, shipping prices are key in an eCommerce environment, and you may need to rethink your current strategies and practices to connect to your target market.

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36% of consumers that abandon their online shopping cart do so because of shipping costs. Customers HATE seeing shipping costs added to their purchase. If your company decides to have shipping costs known to the customer, make sure it is clearly labeled on the products they choose because customers who see that unavoidable fee added onto their purchase may become part of that 36%. Another strategy employed by many businesses is to include the price of shipping with the original price and label the item with “free shipping.” Customers LOVE that label.

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The overall customer satisfaction was 10% higher for customers who received free shipping. Consumers who receive free shipping on their products are more satisfied than their shipping-paying counterparts. If your business is currently charging and keeping a margin of profit of the shipping fee, you may want to reconsider.

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The number of products purchased by consumers when offered free shipping. However, only an average of 3.4 products are purchased when there is no “free shipping” button is offered. Not only does free shipping influence if customers will buy a product, it also influences how much of your products they will buy.

Conclusion

Shipping prices greatly affect consumer’s decisions to buy. Incorporating a system to give customers an option of free shipping may lead to increased customer retention, product sales, and customer satisfaction. If your business can’t find a way to offer free shipping, don’t try to hide the inevitable fee. Customers don’t want to feel they are buying from a shady seller. Be up front and reasonable with your pricing. These few statistics could help your business thrive in an eCommerce setting.