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Shipping Prices & Your Customers: How The Numbers Stack Up


July 22nd, 2014

6 Comments

flat rate shipping prices

If you have ever wondered what relationship shipping prices and your customers share, it’s a one lengthy algorithm that can ultimately determine how well your sales department fares with your ecommerce store. In the most recent study, which was conducted by comScore and UPS (UPS Pulse of the Online Shopper), the numbers that were revealed by this study tell the convincing story.

Shipping Prices Play a Strong Role with Customers

By and far, one of the most important aspects of securing a customer at the time of checkout, according to the report, was the offered shipping prices. These will dictate how your shoppers feel and how they behave on your website. Queried customers in the report were asked what the top factors were in them making a purchase or not, and unsurprisingly the answer was shipping. Moreover, 68% stated that free shipping would cause them to recommend the store to another person; whereas 59% stated that if the shipping costs were high, in comparison to the perceived value of the product being sold, they would give a negative recommendation. The study also noted that shipping costs did not only influence positive or negative emotions, but that they also were the leading factor in shopping cart abandonment rates, too.

Statistics on Shopping Cart Abandonment Rates

Interestingly enough, the same report also found that, as of the past year, over 87% of all shoppers claimed to have abandoned a shopping cart, an increase of over 6% from the previous year’s report. Of the top reasons why, 54% of respondents stated that shipping prices were the primary factor. Among the most integral of processes during the checkout sequence, 76% said that free shipping being offered was the most important part of them deciding whether or not to abandon the shopping cart.

Other Statistics About Shipping Prices

There are some other important metrics that you should also consider when determining what the best shipping prices and policies are to put into place at your online store. The very same study offers a wealth of insight that all ecommerce shopkeeper ought to pay heed to. While your customers crave free shipping, there are some other factors that may surprise you about their behavior as well, according to the study.

  • While fast shipping is desirable, 60% of the customers polled said they were OK with waiting as many as six business days to receive their items, and the average time was about seven days overall.
  • Over 43% of the shoppers polled said that delivery time was an important factor and that the average delivery times they’ve experienced were about eight business days (53%).
  • Your most common shopper, about 78%, will select the standard economy shipping option, usually a 10 days by ground delivery option (so if you offer flat rate shipping prices that are tied to your discount electronic postage provider, you can appease a large demographic of your shoppers).
  • Interestingly, about 67% of your shoppers also want to be offered an expedited shipping option, such as three days by ground, for an added but reasonable price; but only about 16% of them will exercise their option to use this.
  • Lastly, of all the shoppers polled in the study, 65% expected Zappos-styled returns management, with no questions or hassles, and free return shipping.
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    6 Comments to “Shipping Prices & Your Customers: How The Numbers Stack Up”

    1. Karl says:

      I was never aware of how important this correlation was … now I will be reviewing how i can lower my shipping prices as much as possible. Thanks for this article.

    2. Sandy says:

      Awsome info and right to the point. Will be reading more of your articles.

    3. Barry says:

      Solid info with good stats to back it up. Will be sharing on my social channels.

    4. Tanner says:

      Give an individual a fish therefore you feed them to get a day; train that specific person to make use of the online world most of them will not trouble you for weeks.

    5. Phil says:

      Fact driven writing that is superbly delivered. Great insight and priceless tips. Thanks for sharing!

    6. Carrie says:

      I never new that these prices matter that much… wow

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