Ecommerce Tip #4 - Improve Your Shipping Policy

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Alright, time for ecommerce tip #4.  When we last spoke I was advising (begging!) you to plan out your landing pages.  Between that, punching up your copy and getting rid of that freakin’ registration page, I’m sure you’re swimming in the conversion rate by now.

Of course, who can have too many customers?  Well, you, perhaps.  You could be leaving customers on the table if you have a confusing shipping policy.

Welcome to…

Ecommerce Tip #4 - Improve Your Shipping Policy

shipping policy

There are 4 types of shipping policies:

  1. Those that discourage you to buy (expensive or confusing shipping)
  2. Those that encourage you to buy (free or flat rate shipping)
  3. Those that encourage you to spend more (free shipping if you spend $X)
  4. Those that are neutral (fairly price and intuitive)

The first rule of shipping policies is: do no harm.  Your shipping policy should not be the factor that keeps someone from buying.  Here are some common mistakes:

  1. Shipping Only To The Billing Address - People buy gifts.  If you only shipping to someone’s billing address, you’re leaving money on the table.  Don’t forget gift receipts!
  2. Forcing People to Dig for Details - Make your shipping information easy to find.  Think about the places people want to see the information: before they buy (provide an estimator), in the FAQ section, in the Help section, on product pages, etc.
  3. Make Them Wonder About Timing - It’s not just the price of shipping people care about, it’s how long it takes to get there (especially for #1).  Wherever you spell out your fees, spell out the time.

Taking care of those things should help you get closer to #4 - a neutral policy that doesn’t harm you.

Still, there’s probably still room for improvement.  Let’s look at the elements of shipping policies that can help you convert more prospects to sales:

  1. Flat Rate Shipping - This is the Indian buffet of shipping.  It works because it’s easy to understand and it encourages high value orders.   The consistent price means repeat shopping is a no-brainer.
  2. Free Shipping - Free is a magical word.  It lures customers in and gets them to focus on what matters most: buying.  Here are some tips for free shipping offers.
  3. Free Shipping Upgrade - Charging the standard price for expedited shipping is another differentiator.  The marginal increase for USPS rates is pretty small, but the speed increase can make all the difference for a hurried customer.
  4. Gift Wrapping - Gift givers, especially some of the men folk, love this option.  No muss, no fuss!

What are your shipping policy tips and questions?

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Comments

I am trying to put appropriate wording together for the ‘Shipping & Returns’ link for a non-profit Nature Center website, selling items like t-shirts, hats, etc. Do you have an example I could follow…?

Hi Jeralyn,

Alas, I don’t have a sample for you. My gut would be go with what’s fair for you and your members given your budget constraints. You can always test and tweak it later.

-Alex

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