Marketing

Shipping costs are the main reason for abandoned purchases – retailers can do that – eCommerce Magazin

E-commerce is dynamic and growing continuously. Germans alone currently order goods online up to twice a month on average. That goes out a new report from Sendcloud, the all-in-one e-commerce shipping platform for online retailers. The basis of the report is a Europe-wide survey on the online consumption behavior of consumers, which was carried out in the first quarter of 2020 – before the COVID-19 crisis. In Germany, more than 1,000 e-shoppers took part. A central finding: Too high Shipping are an obstacle 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, Germans 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 generally reject additional costs for additional shipping options. 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 laborious or too expensive. The shipping or return costs therefore also have an influence on the returns, which in turn can prevent conversions.

Situation of online retailers

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 impact 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.

Transparency in shipping costs creates trust

“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 the choice of 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