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Study Reveals 66% of Ecommerce Shopping Cart Abandonment Rates Directly Linked to Shipping & Handling Costs


May 16th, 2014

12 Comments

Smiling young male postal delivery courier man in front of cargo

According to a 2009 Q3 study that was conducted by North American Technographics Retail Online Survey, the shipping costs that your ecommerce business is offering to customers could very well mean the difference between outrageous shopping cart abandonment rates or increased orders from customers. The study outlined that the most important metric, as it related to a prospective shopper not placing the order (abandonment) or placing the order, was shipping and handling costs.

-44% said that shipping costs were too high, causing them to abandon the order.

-22% stated that the costs of shipping and handling was stated too late during the checkout process, causing them to rescind the purchase after being apprised of what the actual cost was.

-A Stamps.com study revealed that during the holiday season, 64% of customers desire free shipping.

-The same Stamps.com study also noted that 55% of online shoppers are likelier to abandon shopping carts that don’t offer free shipping, and offering free shipping promotes 15-20% overall increases in order values across the board.

Check Out Some Other Interesting Ecommerce Statistics

shipping-study

The Solution

Seeing as the two most common issues customers shopping online have, as they relate to shopping cart abandonment, are directly associated with shipping and handling costs, the solution is rather simple: offer lower shipping and handling costs (think flat rate shipping), and provide these estimates upfront in the shopping cart so as not to confuse customers. Do this, and you will appease 66% of all online shoppers, according to the aforementioned study, that visit your site to place orders. This can help you to increase your online orders immensely while significantly decreasing abandonment rates. With flat rate shipping, you can offer better rates to your shoppers, too, and encourage healthier conversion rates instead of pulling your hair out over high abandonment rates.

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Your ecommerce business can enjoy instant USPS shipping discounts by using the exclusive TrueShip Flat Rate Select™. With this signature option, your business will enjoy immediate discounts on shipping with USPS. Reduce your shipping cost by utilizing the advantageous 20-pound package limit on Priority Mail with 1-3 day shipping options that your customers will love and low shipping rates that don’t eat up your bottom line. (See our Press Release about Flat Rate Select™ on Yahoo Finance)


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In Conclusion

Approximately 66% of your ecommerce customers want to have low flat rate shipping costs with fast delivery, and they want to see what these costs will be upfront in the shopping cart early during the checkout process. Do these two simple things, and you can enjoy a much greater conversion rate on your shopping cart activity with lower abandonment rates overall. Lastly, customers desire free shipping, especially during the holiday season, which can also increase orders by as much as 20% overall throughout all shopping seasons.

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12 Comments to “Study Reveals 66% of Ecommerce Shopping Cart Abandonment Rates Directly Linked to Shipping & Handling Costs”

  1. […] Stamps.com white paper also found a similar link, noting that during the holiday shopping season – the biggest time of […]

  2. […] Another great press release from R!!| A powerful message from R!!}http://www.trueship.com/blog/2014/05/16/study-reveals-66-of-ecommerce-shopping-cart-abandonment-rate… […]

  3. […] required to pay state or local taxes. Even if those customers pay for shipping, a cost increasingly absorbed by online retailers themselves, that price can be substantially lower than brick-and-mortar […]

  4. […] Study Reveals 66 percent of Ecommerce Shopping Cart Abandonment Rates Directly Linked to Shipping & Handling Costs (Source) […]

  5. […] Study Reveals 66 percent of Ecommerce Shopping Cart Abandonment Rates Directly Linked to Shipping & Handling Costs (Source) […]

  6. […] 66. During the checkout process, if your shipping and handling costs are too high, 44% of your customers will abandon the shopping cart outright. (North American Technographics Retail Online Survey) […]

  7. […] most recent studies have found that shopping cart abandonment and shipping prices are directly linked 65% of the time. In fact, over 80% of shoppers want a free shipping option, even if there is a threshold, and even […]

  8. […] these (as well as any relevant policies) should be clearly stated on the product page.  And with 66% of abandoned shopping carts linked to shipping costs, shipping calculators have become a necessity.  Also, if you have a brick and mortar store, you […]

  9. […] cart abandonment. During the checkout process, if shipping and handling costs are too high, 44% of customers will abandon the shopping cart […]

  10. […] cart abandonment. During the checkout process, if shipping and handling costs are too high, 44% of customers will abandon the shopping cart […]

  11. […] cart abandonment. During the checkout process, if shipping and handling costs are too high, 44% of customers will abandon the shopping cart […]

  12. […] cart abandonment. During the checkout process, if shipping and handling costs are too high, 44% of customers will abandon the shopping cart […]

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