16 Sep Are Delivery Rates Limiting Irish Online Potential ?
With many years of experience working with online businesses of varying sizes – local and international, we see “delivery rates” as a significant road block hampering the continued growth of online Irish businesses.
From a web perspective, let’s take a sample user journey: Visitor levels to a site could be high, the online store checkout funnel starts and then “SLAM” the door has closed and people have left the building!! Delivery cost is mentioned… and the customer flees !
Of course you could mention the delivery rate up front before a visitor gets to the checkout process, net result here, the customer gets a better user experience but spends considerably less time browsing your site as they bail in an attempt to get Free Shipping elsewhere.
What do you do?
- Can you absorb the price of delivery in your product (or in an easily achievable quantity for the consumer e.g. Free delivery with orders over X)?
- Can you strike an unbelievable deal with your courier company (might be volume dependant)?
- Can you justify your own “Man in a van”?
- Can your products be collected locally (Argos/Halfords models)?
- Or maybe your commodity based product is much cheaper than your competitors and you can afford to bolt on a small delivery fee!
Of course consumers aren’t fools, they let their credit card do the talking online. If the net cost of a product + delivery is cheaper on your site to your competitors, then the probability of you getting that order is good.
For Irish online businesses there is another huge limiting factor; the size of our population. If you’re running an ambitious online business, you will need to be trading internationally. This kind of delivery can be expensive, in fact possibily prohibitively expensive.
Again, what are your options?
- Absorb the price (great if you’ve got sufficient mark-up)
- Use a local distributor in the UK, US or other specialist fulfilment company (who stock your product and ship locally)
- Achieve mass volume (giving you strong bargaining potential with couriers) Our conclusions !
Ultimately, consumers want free shipping!! Wouldn’t you? If you’re thinking of setting up a new commodity based online store – be careful unless you can achieve the initial 3 criteria: quality, competitive price& free or almost free shipping.
If you’re currently running an online store and you’re not happy with conversions, re-look at your delivery rates and investigate again.