Cart abandonment is a huge problem in eCommerce. According to the Baymard Institute, about 69% of customers on average abandon their online shopping cart.
The main reason? They find extra costs, such as shipping, taxes, and fees, too high at checkout.
This means that optimizing shipping options at your store checkout is key to ensuring you convert as many customers as possible.
Avoid having a “static” checkout
Static, or flat shipping rates are bad for your business for two reasons:
- Unless you’re sure about the breakeven weight for your flat rate, more often than not, you end up paying more than if you paid for exact weight.
- Flat rates do not show the breakdown of shipping costs or any information about the courier. Not having this transparency can discourage customers from completing their purchase.
Offer calculated rates through Shopify Shipping
Instead, it’s better to offer calculated rates based on the weight and dimension of your products, and the location of the customer. On Shopify, you have this option through Shopify Shipping.
Shopify Shipping is an out of the box shipping solution that gives you the ability to offer calculated shipping at checkout.
Currently, it is only available to Shopify stores based in the US and Canada. (If your store is not in these locations, hang tight- I’ve got a solution for you!)
No matter what Shopify plan you’re on, you can display calculated rates at checkout from USPS, DHL Express, UPS, and Canada Post.
However, if you have your own business accounts with USPS, Canada Post, UPS, or FedEx, you can only display these calculated rates at checkout if you are on the Advanced Shopify Plan or higher.
Other calculated rates options
If your store isn’t eligible for Shopify Shipping, or you’re not too enthused with its limitations, you do have options!
Easyship offers a Rates at Checkout plugin that shows the cheapest, fastest, and best value for money shipping options at checkout.
Just like Shopify Shipping, these calculated rates take into account the weight and dimensions of your product, in addition to the location of the customer’s address.
However, it also provides full visibility on all costs associated with shipping, showing the exact amount of tax & duty and communicating any additional handling fees that may apply.
Work with multiple couriers
Working with multiple couriers is a great way to reduce shipping costs. If you have a target market that is in one specific region, using a regional courier might work to your advantage.
Regional couriers are good alternatives to major express couriers as they provide slightly cheaper rates and are faster than your typical government postal service.
If contacting multiple couriers to negotiate rates and open a business account is something you don’t have time for, consider signing up for Easyship.
Easyship works with a wide range of postal, regional, and major express couriers to offer 100+ shipping solutions. All you need is one account to access all of these options.
Have a good return policy
Having a return policy that is simple and easy to understand can help solidify sales. According to a UPS study, 66% of shoppers review a retailer’s return policy before making a purchase.
Customers like knowing that if they aren’t happy with their purchase, they have the option to return.
If offering free shipping is not a promotion your store can handle at the moment, you can consider offering free shipping on returns. As returns are less likely, this could be a good promotion for your store to help close sales and build trust with new customers.
If you need help generating a return policy, check out Shopify’s Free Return Policy Generator.
Unexpected fees at checkout are a major reason why customers abandon their cart. Therefore, it’s important to be upfront about your shipping and handling costs so customers know what they’re paying for and what kind of service to expect.
By showing calculated rates at your store’s checkout, you can reduce the chances of your customer’s being surprised about these fees, and encourage them to complete the checkout.