It is not easy to get people to visit your online store, so when they abandon their shopping cart at the checkout page, the feeling is understandably unpleasant. They are mostly hit by the high shipping cost which deters them from completing the purchase. Shopping cart abandonment is a pressing issue that many online business owners are trying to resolve. But the big question is: How?

To increase checkout rate at the last mile, online business owners need to bear in mind that consumers want transparency on all costs(especially shipping) and also the delivery options that they can choose from.

Shopping cart abandonment

According to an infographic done by Invesp, 44% of the surveyed respondents cited high shipping cost as the main reason why they abandon their shopping carts. Interestingly, there are four shipping-related reasons for high shopping cart abandonment rate that should give business owners an idea of how to re-strategise shipping options and regain lost sales.

Strategy 1: Be transparent on the shipping cost

Customers are highly deterred by hidden shipping costs, thus it is important for online business owners to state it clearly at the checkout page. They will appreciate it if you could set up your own shipping rate or give options on external delivery couriers to fulfill the orders.

If you are thinking of setting your own shipping rate, Shopify allows you to calculate the shipping costs based on price, weight, and carrier calculated rates. For instance, you can determine that customers will need to pay $4 if the item weighs 2kg.

Strategy 2: Offer free shipping

This is an attractive option for customers but it really depends on your margins as free shipping lowers average order values and eats into your overall profits.

Here’s what you can do. Instead of offering free shipping for every purchase, you can use it as a tool to encourage more purchases. This is based on an online shopper survey done by Compete where 93% of the respondents indicated that free shipping will encourage them to purchase more products.

For example, free shipping can be offered to those who spend a minimum of $100 or you can use it as a promotional tactic for festive seasons such as Christmas to entice consumers to shop at your online store. Make sure you publicise the promotion across your communication touchpoints so that consumers are aware of it.

Strategy 3: Increase delivery options

Similar to offering more payment providers, customers also want to choose from a range of delivery options. Some of the established local courier service providers include Singapore Post, DHL Express, and FedEX. Besides that, it is important to offer next-day delivery and same-day delivery to increase sales conversion.

Shopping cart abandonment can be reduced with the right shipping strategies in place. You can test out the strategies above and see which best fits your online business.