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


May 16th, 2014

39 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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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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39 Comments to “Study Reveals 66% of Ecommerce Shopping Cart Abandonment Rates Directly Linked to Shipping & Handling Costs”

  1. Trevor says:

    Very well written blog. I found a ton of useful information in it that I can use to better operate my online store. Thanks for sharing this info. I will be telling friends and followers in my social circles.

  2. Bryden Carter says:

    Thanks for your post, very interesting and necessary news.

  3. Georgianna says:

    I absolutely love your blog and find almost all of your post’s to
    be precisely what I’m looking for. Does one offer guest writers to write
    content for you? I wouldn’t mind producing a post or elaborating on many of the subjects
    you write regarding here. Again, awesome weblog!

  4. Julienne says:

    I came across this blog in a Google search. These are fabulous tips. Thank you for sharing them!

  5. Maxime says:

    Great information provided here, added your RSS!

  6. Jim Baker says:

    This is a really well written blog post. I enjoyed reading it. Had to comment.

  7. […] recent study that was conducted by the North American Technographics Retail Online Survey showed that over 65% […]

  8. Ray says:

    Good article. Bookmarked.

  9. Andrew says:

    Once I started offering free shipping at my store the sales increased by over 40% … needless to say I found this article very interesting and to be 100% accurate. Thanks for sharing!

  10. Barry says:

    This is true… if shipping is too high I alwyas find a place that offers better rates.

  11. Janice says:

    This is true, because shipping costs are what make me shop elsewhere.

  12. Katherine says:

    great article with awesome facts. glad i found your blog.

  13. David says:

    I noticed that when I started using Expres 1 and could offer lower shipping costs that I got more sales. It was not much at first but as time past it was a lot more than before.

  14. Kasy says:

    I’d like to get better shipping and better returns when I shop online, and that is why I only shop at certain stores like Amazon.

  15. Karrie says:

    Just wanted to say that I really enjoyed reading this article.

  16. Dan says:

    Before I started using Express 1, my sales were good but could have been better. I did notice a very good increase in sales when I lowered my shipping prices after adding Express 1. I couldn’t agree more.

  17. Danielle says:

    Wish a carrier would offer a single price on shipping that didn’t go up… then I could do better with this.

  18. Mandie Birch says:

    I wish that there were easier ways to offer lower shipping. Using the suggestions here but still I find that it costs so much yuo have to charge somethign to also cover your time.

  19. Gerrard says:

    Interesting statistics. I didn’t know that shipping rates could affect sales that much.

  20. Jim-bob says:

    I use USPS flat rate to offer good shipping and i have noticed that customers seem to prefer it over other options that cost more.

  21. Marguerita says:

    I have started using Express 1 after reading this post and just wanted to say thank you! I never knew that this company even existed and now they are saving me a TON on shipping.

  22. Timothy says:

    Finally a blog that helps me save money on my biggest cost: SHIPPING. Most blogs just give you tips to increase sales, which is great. But what about fulfilling those orders, where SHIPPING really costs you a lot of money.

  23. Henry says:

    I like the facts you dug up. I never knew that shipping costs could deter so many customers.

  24. Brian Hoggins says:

    These methods work, and you should also try to keep product descriptions short and add lots of good pictures.

  25. Pharelle Williams says:

    Never knew shipping would cuase you to lose so many customers. using these tips to find a better solution to help wiht sales.

  26. Stephen says:

    That and charging too much for goods will kill your sales.

  27. elewulu says:

    Interesting that abandonment is linked that closely to shipping. Better offer low shipping for customers these days.

  28. Felicity says:

    If only I could get more affordbale shipping rates. Then i could drop the price…. :(

  29. Adam says:

    I have to agree with the author. This study is correct. I noticed an increase in sales, slight but steady, after reducing shipping prices at my store.

  30. Angie says:

    I use priority mail and it allows me to ship for less which also helps sales. good blog post.

  31. Amy says:

    I noticed that when i lowered shipping I got more sales so it works.

  32. Ernest says:

    Wow, never knew that shipping cost has such a big impact.

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

  34. Tim says:

    Excellent writing, are you available to do any guest blogs?

  35. Megan says:

    Who woulduva thought that these numbers would be so high? Time to redo some things for my store.

  36. Brad says:

    The very reason why I offer cheap shipping!!

  37. Chapman says:

    Incredible points. Solid arguments. Keep up the great work. Love your ecommerce shipping blog!

  38. Mara says:

    Wow… never knew the numbers were that high. Time to review my returns policy!

  39. Killian says:

    Guess I better get my shipping prices in order. While this article is scary, it is on point.

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