If you are an e-commerce company, you spend about 10% of revenue on acquiring new customers through SEO, advertising, and more in an effort to drive more potential consumers to your company’s commerce site. On average, you will convert approximately 2% of those into sales. Amazon.com, for comparison, converts approximately 14% of non-Prime visitors. Yes, being the e-commerce gorilla helps, but that’s not the whole story.
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Amazon leverages and strongly promotes their delivery experience throughout every part of their customers’ journey. As early as the search results page, they surface delivery information to create more urgency and clarity to incent the purchase. They do the same at the product detail page and within the shopping cart and checkout process. This drives a significantly higher conversion rate.
Removing delivery anxiety, your single largest obstacle to converting orders, can result in an up to 20% increase in sales, happier customers, fewer calls to customer support, and an optimized delivery network.
What is delivery anxiety?
While shopping online, have you ever cancelled your order because:
- You didn’t know when you would receive your order?
- You learned shipping costs made the total cost of your order too high?
- You discovered shipping time took too long?
If you answered yes to any of these questions, then you have experienced delivery anxiety.
Delivery anxiety is the anxiety consumers feel when they don’t know when they are going to receive their order or when shipping costs push the total order cost too high. It ultimately causes the consumer to abandon the shopping cart, and possibly order the product they so desperately desire elsewhere.
4 ways to eliminate delivery anxiety
There are four keys ways that leading retail and eCommerce companies eliminate delivery anxiety and thus convert more online sales
- Providing date-certain delivery dates,
- Reducing delivery times,
- Reducing the price of delivery, and
- Providing post-purchase delivery updates.
Provide date-certain delivery date
How does your delivery experience differ from that of Amazon.com’s? One of the biggest differences is that Amazon communicates date-certain delivery options as early as the product page. This removes the delivery anxiety of not knowing when an order will be received, or received by a deadline. It also increases the urgency to buy.
Image courtesy: Pixabay
But, by how much?
Well, Amazon Prime members convert an online sale 74% of the time and non-Prime members of Amazon convert a staging 14% of the time. This is in stark contrast to the paltry 2% conversion rate that the rest of eCommerce and retail companies typically experience.
Many eCommerce companies report that consumers will call customer service while they are shopping to ask when they might receive an order if they were to place it. So, not providing date-certain delivery information is not only hurting sales, but it also costs you an average of $5 every time your customer service agent needs to get involved.
Providing date certain delivery has been difficult to do until now. Deterministic approaches can take 9 months or more to implement, require dozens of engineers, and additional consultants at a high cost. These approaches attempt to understand exactly where items are in stock, where they would be shipping from as well as warehouse picking and packing times, and carrier cutoffs.
Stop being vague with delivery dates and commit to your customers. They will then, in turn, commit to you.