Shipping costs, a meaningful trust element

Shipping costs are an important factor to consider for your online store. How can you increase your shopping cart with the correct information about shipping costs? You'll find out that and more in today's edition.

TRANSCRIPTION OF THIS EPISODE OF THE PODCAST

Hello, my name is Jörg Dennis Krüger, and as my Pokémon trainer said at the beginning: 

Yes, exactly, I am the Conversion Hacker. Welcome to the new edition of the Conversion Hacker Podcast. 

This time on the topic of shipping costs. 

Shipping costs, an extremely exciting topic! I advised a shop some time ago. He is still in my consulting program and sells high-end women's clothing. 250 € each: dresses, blouses, trousers and so on. And then suddenly they asked for €5 shipping costs during check-out. "Like this? "What? I spend €52 and then I have to pay another €5 for shipping? Why is that?”

There is actually only one company that I know of that, on a large scale, affords to charge high shipping costs to customers who leave a lot of money with them. And that is IKEA. I don't know how long they'll go through with this. But IKEA enforces the same shipping cost logic in its online shop as it does in furniture stores. This means that the more you buy, the higher the shipping costs are.

Well, but with this fashion provider it is of course like: “I should buy such an expensive dress and then I should pay €5 in shipping costs?”. That's one of those endings: "The user has decided to buy such an expensive dress, then I would like him to pay €5 for shipping costs." Then he has to make another decision to spend another €5. And a lot of people will say: “No, why is that?” 

So in this respect, you can take shipping costs and they are particularly fair if you sell small things for less than €30 or €40. Then the user probably agrees to pay shipping costs. However, each product should have its own limitations. Somewhere around 39, 49 €, I would then see a free shipping limit at the latest. Then shipping should also be free. And of course you can mention it anywhere for free.

“Free shipping from €49”.

This is a really great trust element. I can point out in the shopping cart that shipping costs are free if you add something else. And so I increase my shopping cart size accordingly. A lot of people do that. If I have something in my shopping cart for €35 and I get the message “Add another €4 of products and you will get free shipping”. Then it is clear that the customer might only add €4 or even €10 to make more purchases so that it really pays off. And then I get much, much more use out of it. 

And of course I can also use the shipping costs on another level to increase my shopping cart, namely with express shipping. Because many people naturally want to have things quickly. I order something and realize, “Oh dear, my birthday is in three days,” “Valentine’s Day is just around the corner,” whatever, I need it quickly. Then I might like to spend some extra money to book express shipping. Depending on the product, depending on how you send it via express, you can easily take 17, 20, 25 €. If you do that then it really is guaranteed to be shipped within 24 hours.

I know this from a large adult mail order company in Berlin, for example, who does it very, very well. He doesn't even ship with DHL, but with a smaller shipping company. And they really deliver. If you order by 6 p.m., I think it will usually arrive in the morning the next day. Really good, it costs a bit, but it makes sure it's right there. And as you've just heard, I know this because I've used it twice before. Because I said, “No, come on, I really want it at short notice.” And in this respect, these extremes when it comes to shipping costs, “free shipping” and “spending real money on shipping” are very close to each other.

Because when someone gets something for free, they are happy. But maybe he then says, “Oh no, I don’t want it for free, now I’ll put more money on it because that gives me an advantage.” And that's much better and can ultimately end up almost the same financially. 

If you then offer the user free shipping, but optionally express shipping. Of course, you have to describe it properly: by when must the order be placed; how quickly do you ship etc. So that you avoid complaints and so on. And of course there are no refunds for express shipping costs. “If you then return something,” dear customer, “then the express shipping costs are ignored, even if you cancel” (no legal advice). I always recommend a protection package from a lawyer who can advise you. But in principle it is like this: There are no refunds for such express shipping costs because this is a service provided and cannot be returned. And the return costs, or the shipping costs, whatever, must be reimbursed.

Whatever, this is definitely a great opportunity. So, first offer free shipping from the lowest possible level, but then offer express shipping at the back so that there is an upsell. And you have to package it beautifully, you have to present it beautifully. There are nice ways to do this properly, but in many cases it works really well. 

Do you have experience with this in your shop, or would you like to offer it in your shop? Write me another email at jdk@jdk.de. I look forward to feedback and I welcome input. Maybe you have had completely different experiences. I would really like to hear that too. If you like my podcast, please leave a review on Apple Podcast, subscribe to the podcast on Spotify, Apple Podcast, Google Podcast or wherever so you don't miss the next edition. And I look forward to having you there next time too.

See you then, your conversion hacker, Jörg Dennis Krüger. 

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