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Delivery terms and profitability in e-commerce
Delivery terms and profitability in e-commerce

Find out how the policy of delivering goods affects the conversion and what requirements e-commerce is currently setting.

Written by Martyna Woźniszczuk
Updated over a week ago

Conversion is a decisive indicator for e-entrepreneurs. It happens when the user performs an activity important for your company. Of all the expected actions, one thing is obviously the most important: making a purchase. Let’s be frank, a good offer is not enough to convince the customer. It is best that the whole purchasing process be as simple as possible and close in 24h. How to do it? The delivery of products must work like clockwork!

Find out how the policy of delivering goods affects the conversion and what requirements e-commerce is currently setting.

Reasons why every third customer does not buy from you

Do you know that the factor that affects the abandonment of the shopping cart is the uncertainty associated with delivery? According to Gemius research, it is indicated by over 30% of users. This indicator shows the importance of a delivery terms for e-commerce success. The result clearly shows that every third potential customer leaves your shop with nothing because the conditions of product delivery prompted them to buy somewhere else. As basic problems they mention delivery costs and its time.

High delivery costs

The user is aware that the price of the product most often does not constitute the final price. After adding delivery costs, the offer often ceases to be attractive enough to convince the potential customer to buy. The low cost of product delivery is now an e-commerce requirement that cannot be ignored. As many as 48% of potential customers resign from the purchase due to too high shipping costs.

This was proved by the Free Shipping Day. The action successfully convinced the Poles to make orders and that day they made more than twice as many as the day before! The most important thing is to minimise the price of the shipment. How to do it? It may sound trivial, but simply negotiate prices with your courier company. You fight for half of your potential customers, so even double sales.

Too long delivery time

Even in the case of free shipping, the delivery time is very important. Gemius research results indicate that up to 37% of users think that long delivery time is a problem. The customer then usually decides to buy a similar product from the e-shop which guarantees a shorter delivery time.

The delivery policy unfavourable to the customer also increases the ROPO effect. The user has found all the information about the product on the Internet and is already determined to buy, however, they make the purchase in the offline channel. Imagine a situation where a potential customer needs a particular thing and finds it in your e-shop. However, the delivery time is 10 business days. What do they do? They list parameters and go to buy it today in a brick and mortar shop. This is ROPO. And if you run only an online shop, ROPO kills the sale of your offer.

Delivery policy that still encourages to buy

Free shipping and delivery time closing in 24h is a dream of every e-business. It is known, however, that it is not always possible to meet such conditions for all goods and services. However, there are a few key principles to ensure that delivery policies continue to contribute to increased conversion and viability of e-commerce. Details below:

  • Take care of the structure of information in your e-shop. The vast majority of users read the terms of delivery before making the purchase. State them clearly and intelligibly. It is best to put short information about the delivery time on the product page.

  • Go below the psychological threshold of PLN 15. The consumer is fully aware that the final price of the product also includes the cost of delivery. And often after adding it, the offer ceases to be so attractive anymore. Research shows, however, that the cost of shipment up to PLN 15 is accepted by the majority of users.

  • Close the delivery time in 2 business days. If this is impossible, it is necessary to suggest to the customer similar products for which the delivery time is shorter. You have only 90 seconds to do it. If you do not use them, the client will go to the competition. The QuarticOn recommendation engine has an intelligent option for testing the user’s needs and proposing the corresponding products. The tool examines the user's behaviour on the website and if the user is looking for a different solution, the system shows them recommendations of products with similar parameters, but shorter delivery time. Thanks to this, the customer will make a purchase in your shop.

Show customers that you care! Conduct a survey among the users. Remember that the most important thing is an individual approach. Each client has different needs and it is crucial to get to know them and create a general system that will help to meet most of them. Ask your clients what you can do for them. They will definitely indicate which delivery time is optimal for them. A good solution is also a free delivery of the first purchase. It not only has a positive effect on the conversion, but also creates consumer loyalty.

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