Ecommerce Delivery Times Are Key for Conversion Rates

Claire Small
Authored by Claire Small
Posted Tuesday, July 24, 2018 - 6:14am

Achieving ecommerce success is about more than just what you sell; it’s about the buying experience from start to finish. Customer expectations are always shifting toward convenience. Shoppers increasingly factor order fulfillment speed into their purchasing decisions. Check out the Red Stag website for more information about how order fulfillment operations can support your business as it grows.

The difference between making and losing a sale sometimes boils down to how fast your products can arrive on customers’ doorsteps. Ecommerce delivery times are now key for conversion rates. Simply put: Failure to offer a range of delivery options at appropriate price points—from expedited to standard—will cause merchants to miss out on revenue.

Shoppers Are Willing to Pay More

In the past, higher costs associated with faster shipping acted as a roadblock for retailers looking to expand their order fulfillment options. However, in one encouraging trend, data shows consumers are willing to pay more for faster shipping, making it more feasible for ecommerce companies to offer a wider range of options. One survey found shoppers are willing to pay up to $18 for same-day delivery. Similarly, respondents would pay up to $19 for international shipping.

Of course, not every consumer will choose to pay extra for speedier shipping. But offering it as a selection will ensure you capture those shoppers who want or need expedited delivery. This, in turn, will reduce shopping cart abandonment rates during the checkout stage. To further minimize the risk of consumers bailing out due to order fulfillment issues, make sure delivery pricing and timeframes are posted clearly before the final stages of checkout. This way, customers will not feel ambushed by their subtotal or shipping date estimate.

Consequences of Limited Order Fulfillment

According to another survey, 66 percent of shoppers bought products from one ecommerce company over another simply because the delivery services appealed to them more. Over half (51 percent) admitted to failing to complete an online order because of a lack of delivery choices. This illustrates how important delivery is to your bottom line. Even with an appealing product lineup, order fulfillment is the missing link between browsing and buying.

Enterprise ecommerce is competitive these days. Online retailers hoping to capture buyers and retain them in their sales funnel must pay attention to what customers want, then deliver. In this case, make-or-break factors include delivery speed, price and transparency during checkout.

Last-Mile Delivery Enables Speed

Last-mile delivery serves as the link between a transportation hub and the destination for a given package. This is a crucial consideration for ecommerce companies offering one- or two-day delivery options. It’s impossible to guarantee order fulfillment on such short notice without a last-mile delivery option. Merchants are starting to factor this customer demand for speedier delivery into their back-end logistics accordingly.

For example, Shopify merchants can now utilize a third-party plug-in to schedule same-day deliveries when they partner with last-mile delivery specialists Deliv. Utilizing a platform supportive of flexible order fulfillment options helps merchants offer a range of time frames, including same-day delivery for customers in a hurry.

Ecommerce delivery times are key for conversion rates first and foremost because they affect shopping cart abandonment rates. But delivery also becomes a larger part of your branding. When customers know you offer several flexible delivery options, they are more likely to return for future purchases and recommend your store to friends. Speedy delivery can even become part of your unique selling proposition, provided you can find a way to balance customer demand with order fulfillment logistics.

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