We live in a world where customers can order a product online and get it in just a few hours. Customers do not only want low prices and quality products but they also want them delivered fast.
In fact, shipping time is one of the biggest factors that influence conversion rates. This means that your shipping time can influence the overall success of your ecommerce business.
In this article, you will find out how fast shipping can increase conversion rates and how you can implement fast shipping in your action plan to increase sales in retail.
How fast does fast shipping get? Many will argue that no single “fast shipping” standard can work for all ecommerce businesses. However, the idea of fast shipping is to get products in customers’ hands in the shortest possible time.
Some companies boast of 2-day deliveries or next-day deliveries while other companies boast of express delivery in only a matter of hours. This depends on factors like location. For deliveries within the US, companies may offer same-day or two-day shipping. For deliveries outside the country, companies may offer delivery within one or two business days.
Research reveals that 41% of customers are willing to pay an extra fee for same-day delivery. About 24% say they are willing to pay more to get their order within one to two hours of ordering.
So what are the benefits of investing in fast shipping for your ecommerce business?
As an ecommerce seller, you want your products to be seen by potential customers. This can only happen when your product appears on search results. With fast shipping, you can climb up search result pages and retain higher rankings.
Most online marketplaces prioritize customer service and fast shipping is a clear indicator of good customer service. By subscribing to fast shipping, you can attain higher search rankings, have your product seen by more potential customers and increase your conversion rate.
To build a successful ecommerce business, you need to build a loyal customer base. Fast shipping subconsciously gives customers the impression that buying from you is better than buying from other sellers. With fast shipping, you can get repeat purchases and loyal customers who can spread the word about your business, ultimately increasing sales and revenue. This is why Amazon FBA has over 100 million Prime members.
One of the biggest reasons for cart abandonment is shipping costs and slow shipping. Customers may not make it to the checkout stage if they won't be getting their order as soon as possible.
Whether you are selling on Amazon, the Walmart marketplace, or any other platform, fast shipping can reduce cart abandonment and ultimately increase conversion rate and sales.
There are millions of ecommerce sellers customers have to choose to buy from. Having a fast shipping tag like the Amazon Prime tag, on your listing gives customers a feeling of trust, making them more willing to buy from you.
Winning the Buy Box means that your product will appear within the product details under the “Add to Cart” button. This means that when customers click on Add to Cart, the sale will go to your product. Sellers who win the Buy Box get over 90% of sales. However, the winner of the Buy Box is not permanent but changes every 15 to 60 minutes.
Fast shipping is one of the factors most online marketplaces consider in choosing the Buy Box winner.
In a bid to stand out and attract customers many sellers fall into the trap of going into price wars. This eventually ends up being a race to the bottom where nobody wins.
One easy way to stand out and attract customers is to offer incentives like fast and free shipping. By doing this, you can boost positive reviews and win over more customers.
Fast shipping comes with multiple benefits both on the side of the seller and the buyer. But before incorporating fast shipping into your business, it is important to understand what comes with it and prepare to manage the challenges.
Customers prioritize fast and free shipping. However, how do you meet customer expectations while ensuring that the shipping costs don't eat into your profit? It is important to consider various shipping combinations including speed and cost. Offer customers different delivery options including delivery timeframes, and delivery carriers.
You also want to consider what fulfillment methods will be the most cost-effective for your business. Should you outsource fulfillment or handle them yourself? Are you overspending or are there cheaper options? You may consider using a fulfillment calculator to find out how much you're spending and figure out ways to cut down on costs.
It is one thing to offer fast shipping and it is another thing to deliver on your promise. Most customers will not return to your store if their expectations were not met. Worse still, you may have to deal with some negative reviews in the review section. You want to ensure that you can fulfill your delivery promises. Consider a fulfillment provider with the right expertise in order to guarantee prompt delivery.
In addition to offering accurate delivery, it is important to plan for increased order volume that comes with selling on multiple marketplaces. You may want to consider increasing staff or warehouse space if you are handling the fulfillment yourself. You may also work with a fulfillment service to automate the process and ensure timely delivery no matter what.
Using fast shipping in your ecommerce business is a quick and easy way to increase your brand visibility, attract customers and drive conversions. Here's how to increase company sales using fast shipping:
In-house fulfillment is a more hands-on option where the sourcing, storing, packaging, and shipping of products are done by the seller.
With in-house fulfillment, you stay in control and on top of everything including receiving and storing inventory, monitoring inventory, picking and packing customer orders, and shipping products to customers. You will need to consider your capacity and scale.
This method can be effective if you have an efficient fulfillment network that can handle the process of order fulfillment effectively.
On the flip side, it can get increasingly difficult to manage if you are selling during peak periods or on multiple channels.
There are various programs available on different online marketplaces.
For example, on Amazon, you can utilize Fulfillment by Amazon, a fulfillment service that gives you access to the Amazon Prime program. If you sell with Fulfillment by Amazon, you qualify to sell to millions of Amazon Prime members and offer free two-day shipping to customers.
If you are selling on Walmart, you can partner with Deliverr, Walmart's third-party fulfillment partner, and get access to offer Walmart's fast two-day shipping.
As an Amazon seller, the Prime program qualifies you to sell to millions of Prime members. This will help you double up sales and grow revenue with Amazon, as customers won't miss out on the chance to get free and fast shipping. The easiest way to qualify for Amazon Prime is through Fulfillment by Amazon. With the FBA service, your products are automatically qualified for Prime.
As a seller, this comes with multiple benefits. For one, you get a Prime badge on your listing to tell customers that your product is up for free and fast shipping.
Secondly, since Amazon is focused on customer satisfaction, your product will rank higher on search results.
Lastly, you have a higher chance of winning the Buy Box and increasing sales on Amazon.
The Walmart Marketplace offers customers free two-day shipping using a third-party fulfillment service - Deliverr. For Walmart sellers, they get a fast shipping tag, higher ranking in search results, and eligibility to win the buy box.
With eBay Guaranteed Delivery, customers can filter products and receive them within the space of one, two, or three days. For eBay sellers, they get fast shipping tags and higher placement on search results.
Customers want to get quality products and get them fast. Investing in fast shipping comes with multiple benefits including an increased conversion rate, loyal customers, and standing out from the competition. It is important to consider your shipping options and choose one that is most suitable for your eCommerce business.