By: Colette M. Williamson
Recently a member of our team found this infographic. The statistics are fascinating, especially the one that said 52 percent of abandoned online shopping carts occurred due to the shipping and handling costs.
Another statistic I found fascinating was, during the holiday season in 2010 the average order value with shipping was $86.58, and with out shipping it was $125.20. A $38.62 difference may not seem likemuch, but it can add up in the end. Would you rather have people buying your products because you offer free shipping or abandoning because the shipping costs are to high?
These statistics reminded me of an experience. I wanted to buy a perishable food product that was difficult to find in regular stores. The price seemed reasonable so I went the website and placed it in the shopping cart. As soon as I saw the shipping cost, I aborted my purchasing quest immediately. The product was five dollars and the shipping cost was $30! I was willing to pay a few dollars for shipping, but $30 was outrageous, especially since the product wasn’t very large or heavy.
If they had offered free shipping, I probably would have thought about buying more than one container. But since their shipping was ridiculously out of my price range they lost my business.
As business owners it is important to weight out the pros and cons of free shipping. It might be in your companies best interest to have a free shipping option, but then again it might not. You decide.