As the pandemic worsens, more people are turning to eCommerce instead of shopping in storefronts. According to Shopify research, approximately half of shoppers are scared to visit physical businesses for fear of contracting an infection.

Even though eCommerce is growing, converting clients is more difficult than ever. Inconvenient shipping options, long delivery times, and stock shortages are also major reasons for abandonment, according to 57% of purchasers. Furthermore, almost 50% of purchasers are dissatisfied due to excessive shipping expenses, exaggerated taxes, and high fees. Because taxes and fees cannot be avoided, optimizing shipment and delivery is crucial. A well-thought-out eCommerce shipping plan is vital for converting customers and encouraging them to make repeat purchases, whether you're selling locally or internationally. Furthermore, a well-designed shipping plan can reduce cart abandonment, increase average transaction value, and, most importantly, improve customer conversion rates.

Our SEO agency aims to help eCommerce shop owners establish and implement shipping strategies that may potentially enhance sales and keep customers coming back for more. So, without further ado, let's get started.

Make shipping free

Who doesn't enjoy receiving something for nothing? And if you offer free delivery, you'll have a better chance of closing the sale, since 90 percent of consumers think free eCommerce shipping is the most tempting incentive for shopping online.

'How can I be profitable if I give free shipping?' Some of you might wonder.

Offering free e-commerce shipping does not require you to lose revenues or take a lenient position in order to satisfy your customers. In principle, you factor delivery expenses into the pricing of your products.

This strategy is unsuitable for products with low profit margins. For example, if you provide free shipping for $50 with a product worth $10, you must raise the product's price to $60 to break even, leading to reduced sales and significant customer trust issues.

High-ticket items, on the other hand, are suitable for unconditional free shipment. Nobody will blink if you offer $50 in free delivery with $500 or $1,000 goods, for example.

Gain a full grasp of your profit margins, pricing strategies, and order value.
Examine your profit margins and pricing approaches and compare them to those of your competitors in order to economically implement free delivery. Once you have the correct figures and delivery costs for the various products, you will have a fair idea of how much you can charge without losing money or leaving customers disappointed.

Testing conditional free shipping (which pushes customers to make a minimum purchase) and observing how your customers react could potentially provide useful insight. In this scenario, understanding the average order value is crucial. The average buyer, for example, orders $75 in items. As a result, if you offer free shipping on orders of $90 or $100, customers will be more likely to continue adding items to their basket, as 93 percent of shoppers will do so to qualify for free shipping.

Make your packaging solutions more efficient.
Optimise the box to save even more money on delivery. Because weight is an important element in determining shipping costs, removing a few pounds from your packaging solutions could save you a lot of money in the long run.

Going overboard and compromising the packaging's integrity, on the other hand, may result in product damage during shipping. For sensitive items, it is critical to use heavy packaging material. Use lightweight packaging, such as corrugated envelopes, which come in a variety of forms and sizes, for items like apparel, soft toys, pillows, and other items that are difficult to damage.

Another alternative is to use the carriers' free packaging, as long as it offers enough protection.

Offer flat fees.
Flat-rate shipping eliminates the need to weigh items, calculate distances, and calculate delivery times, simplifying the process for you and your clients. However, this strategy may require a bit more planning than the others we've covered thus far.

To begin, determine the normal cost of shipping an item. Then, be sure you're not charging your customers too little or too much. After hitting that magic number, prices will be slightly under or above acceptable margins. Don't be concerned; any deficiencies (if any) will be addressed as you proceed.

On the one hand, flat-rate shipping encourages large orders, whereas modest orders may not provide sufficient value. On the other hand, it may discourage small offences, ending in desertion. As a result, establishing whether a flat fee is appropriate for your business is crucial, based on your clients' purchasing habits and the products you sell.

Consider offering table pricing.
Table rates are conditional prices that vary depending on size and weight, quantity of products ordered, location, order totals, and other factors. This technique is suitable for businesses that sell a diverse range of products throughout a large geographical area, both locally and internationally.

Here are some examples that may help you get back on track:

Free shipping is offered for orders of $200 or more.
Ship items weighing less than ten pounds for $15.
Offer $50 shipping for purchases weighing more than ten pounds.
If the destination is close (within a specific radius), charge a flat rate of $10 per shipment.
Because they are so adaptable, your ingenuity will determine how well you execute table rates and tempt customers to buy more. Making pricing confusing and challenging, on the other hand, may alienate customers and jeopardise sales.

Display real-time rates

This approach enables you to provide real-time shipping quotes based on the exact rates charged by carriers. Weights, sizes, distances, and shipping times all influence the pricing. One advantage is that you can charge any price you choose for the products. Setting competitive prices can help you gain a competitive advantage.

However, as long as the carrier's prices remain stable, your delivery costs will not fluctuate. Customers will trust you more if they can compare prices in real time. As a result, you will not only provide excellent value but will also enhance the client experience.

When consumers have multiple options with varying prices, they may pick the less expensive ones, decreasing the need for free shipping. Customers are also empowered when making important purchasing decisions.

Talk to possible carriers about your pricing.

Although you can negotiate pricing with potential carriers for each product in your business, this method works best for large and heavy items that you cannot or do not want to ship for free.

Shipping costs for large purchases can easily add up. Customers may switch to a competitor without hesitation if the price exceeds the tolerance limit. In such cases, it's a good idea to compare prices and choose the ones that provide the best value and savings.

Experiment with different shipping options.
Because each organisation operates under different circumstances, it's understandable if standalone strategies don't generate the expected results. In such instances, employing several tactics to locate the best fit for your firm is required.

Best practices for shipping strategy

Here are some more things to consider while building an effective shipping strategy.

Regardless of the method you pick, the fees must be displayed at checkout. Any ambiguity may call into doubt your credibility, making it more difficult to obtain customers.

It's also vital to be open about the expected delivery date. Customers will be less inclined to make repeat purchases if you overestimate durations and are unable to meet them.

It's also a good idea to update clients on the status of shipments in real time. Customers will be more at ease if they receive email confirmations when each step is finished.

Answer consumer inquiries as soon as possible. In this case, establishing a two-way communication channel between the carrier and the client may be beneficial.

To sum up

Free eCommerce shipping is good when the costs can be successfully integrated into your product pricing without putting you at a competitive disadvantage. Flat rate shipping is suitable for products with similar weights and dimensions.

If you sell a diverse range of products, a table rate for eCommerce shipping will allow you to set your prices with sufficient flexibility. If you do not want your clients or yourself to be burdened with complex calculations, use live rates.

Finally, if all else fails, try different combinations. You may choose the best delivery rate for your online store by doing a comprehensive trial-and-error process.