Marketing

How online retailers can reduce abandoned purchases – eCommerce Magazine

E-commerce is dynamic and growing continuously. At the moment, Germans alone order goods online up to twice a month on average a new report the all-in-one e-commerce shipping platform Sendcloud. the all-in-one e-commerce shipping platform for online retailers. The basis of the report is a Europe-wide survey on Online consumer behavior, which was carried out in the first quarter of 2020 – before the Covid 19 crisis. In Germany more than 1,000 consumers took part. A central finding: Too high Shipping is one of the biggest barriers to making a purchase.

Shipping costs are the crux of the matter

In Germany, consumers always expect the lowest possible shipping costs. It doesn’t matter which shipping services an online retailer specifically offers. According to the online survey, shipping costs are too high among Germans for 62 percent of abandoned orders responsible. This is followed by a delivery time that is too long (41 percent) and negative previous experience with the respective shipping company (23 percent). Compared to the European average (13 percent), German consumers also more frequently state that a negative experience with a shipping company in the past led to an order being abandoned.

When the shipping costs are too high depends on the value of the order. The higher it is, the more expensive the delivery can be. At 15 euros up to 3.40 euros are acceptable, at 50 euros up to 4.30 euros and at 150 euros up to 5.60 euros.

Minimum order value, additional shipping options and returns

In order to increase their own conversions, some online retailers set a minimum order value above which shipping is free. Unlike many Europeans, however, German consumers are hardly willing to add another product to their shopping cart. Only 57 percent of them would likely use this option. This means that Germany is also below the European average (70 percent).

In addition, 35 percent of German consumers reject further Costs for additional shipping options generally from. Across Europe, the rejection is a little lower at 27 percent. The front runner here is Belgium with 37 percent. Some Germans, on the other hand, agree to additional costs for faster or precise shipping. In addition, the willingness to pay more for climate-neutral shipping is slightly higher than in Europe.

German consumers are also far ahead when it comes to returns. 60 percent of them regularly return products. However, they refrain from returns if, for example, the return process is too cumbersome or too expensive. The shipping or return costs therefore also have an influence on the returns, which in turn can prevent conversions.

Transparency in shipping costs creates trust

Consumers’ preferences for shipping are shaped by their respective national expectations and habits. Free shipping is no longer a matter of course today, after all it has a serious effect on the profit margin of online retailers. However, shipping costs also have a major impact on conversions, especially in Germany. The willingness of consumers to assume costs basically depends on the order value and the shipping method.

“Shipping costs per se play an important role in the online shopping experience for consumers. It is therefore important that online retailers provide timely insight into all costs incurred, ”says Rob van den Heuvel, CEO and co-founder of Sendcloud. “Online retailers not only have to be transparent with regard to costs, but also when it comes to choosing different shipping options, such as environmentally friendly delivery or parcel shop delivery, as well as delivery times. If online retailers offer many options at checkout, they can improve the customer experience in the long term. This creates a customer-friendliness that is noticed positively. ”

Also read: Customer journey touchpoints: 4 rules of thumb for what online customers want