When an eCommerce brand wants to increase sales they drop the price, right?
But that’s not always the best strategy at all.
There’s a better way to improve conversions, improve your customer experience, boost your sales, and do it all sustainably.
And that’s faster shipping & delivery.
Research shows that over 28% of customers abandon their carts because of unexpected shipping charges. So you can potentially increase your conversion rate by ~28% just by offering free shipping.
But that’s just the beginning.
Go a step further and offer not just free shipping, but faster shipping. Fast shipping is impacting conversions like never before, with so much shopping moving online and so many people relying on eCommerce for their essentials.
Fulfillment is your differentiator.
Almost 70% of shoppers expect 2-day delivery or faster when they order, and at Deliverr we’ve seen this reflected in our merchants’ sales. We’ve seen fast shipping reduce ad spend by 50%+, enhance visibility without depleting profit margins or undermining reputations, and increase conversions up to 900%.
Why are 2-day deliveries so impactful on eCommerce conversions, and how do you take full advantage?
In this article, we cover everything you need to know.
Let’s dive in.
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Back to basics: what is 2-day delivery?
2-day delivery is an eCommerce fulfillment service level where you deliver an order to the customer within two days of purchase.
The exact delivery date depends on your order cut-off time, fulfillment set-up, and shipping carrier, but the premise is the same: lightning-fast deliveries that make shopping online just as, if not more, convenient than shopping in-store.
Importantly, 2-day delivery is quickly shifting from a customer perk to a customer expectation.
The average online shopper now considers 3.1 days an acceptable amount of time to wait for an online order, and nearly half of shoppers have abandoned an online shopping cart because of slow shipping speeds.
Benefits of 2-day delivery
It’s not just online shoppers who prefer 2-day deliveries. eCommerce sellers across the country favor 2-day and next-day delivery speeds because they positively impact eCommerce conversions in various ways.
Increase D2C conversions
Fast shipping speeds increase conversions on D2C websites because they allow brands to compete with large online retailers and marketplaces. This way, brands get to grow their direct sales on their sites, avoid online marketplace fees, and build more direct relationships with their customers.
For example, Chassis achieved double-digit growth on its Shopify store after implementing 2-day delivery for customers based on their location.
This is because 2-deliveries increase conversions through:
1) Trust signals
Fast shipping banners on your website homepage and category pages create an immediate signal of trust, showing you care about the customer experience, you invest in an Amazon-like service, and you want customers to receive their order as quickly as possible.
2) Purchase motivators
Fast shipping tags on product pages and listings provide customers with additional reasons to buy from the brand. They signal immediate gratification, ease, and reliability. This helps customers choose your site over buying elsewhere.
3) Risk aversion
Shipping countdown timers tell customers how long they have left to receive an item by a certain date, depending on their location. This promises customers speed and urgency while removing the risk of a product not arriving in time - prompting customers to convert now before missing out.
Increase return on ad spend
Online sellers see an increased return on ad spend (ROAS) when adding 2-day shipping tags on Facebook, Instagram, and Google Shopping ads.
Footwear retailer Hey Dude Shoes experienced an 11% decrease in CPA and a 13% decrease in CPC following the addition of 2-day and next-day shipping messaging to its Facebook ads.
Fast shipping ad tags provide shoppers with something positive to distinguish your ad from similar advertisements. All the fast shipping factors that increase D2C conversions that we just talked about (trust signals, purchase motivators, and risk aversion) are contained in a small two-word tag on your ad, immediately warming leads and compelling them to click onto your site.
Leverage marketplace fast shipping programs
When you can confidently ship products within 2 days, you can qualify for marketplace fast shipping programs such as Walmart TwoDay, eBay Fast ‘N Free, and Wish 2-day.
Comfort and wellness brand Huggaroo used Deliverr to achieve 2-day delivery speeds and qualify for Walmart TwoDay Delivery and eBay Fast ‘N Free.
As a result, they increased their conversions by 300%. And when you’re competing with hundreds of other sellers on a marketplace, that kind of boost will guarantee a significant advantage in your rankings and sales.
These fast shipping program qualifications help increase order volume through:
1) Enhanced SERPs
Listings appear higher in the general search results and appear in fast shipping-filtered queries, increasing customer reach.
2) Increased visibility
Listings stand out in the search results and on the listings page, with dedicated fast shipping tags and buy box dominance that attracts shoppers.
3) Customer loyalty
Listings benefit from fast shipping program-tied customer loyalty, especially as buyers remember their positive experiences and come back for more.
Boost customer lifetime value
Two-day shipping increases customer lifetime value, encouraging customers to buy from you again, buy more often, and spend more money each time.
It achieves this through:
1) Positive experience
Over a third of customers won’t return to a retailer following a bad delivery experience, which means customers will actively return to a retailer following a positive delivery experience. A 2-day delivery polishes off a positive customer experience and gives customers more reason to buy from you again.
2) Minimum basket spend
Customers will willingly spend more money to reach a minimum order spend for free and fast shipping - increasing average order value.
3) Immediate gratification
Fast shipping satisfies the need for immediate gratification, making customers more likely to convert straight away before considering what other products they might need. This results in more regular sales.
How to offer 2-day delivery for your eCommerce customers
You have two main options for providing customers with 2-day deliveries:
1. In-house 2-day deliveries
You can meet 2-day delivery speeds in-house by optimizing your warehouse locations, fulfillment processes, and operational resilience to quickly process and ship orders.
In-house fulfillment is best suited to smaller retailers who can quickly turn orders around in-house while managing other eCommerce tasks. However, the bigger your business gets, the harder it becomes to sustain 2-day deliveries during periods of growth.
2. Outsourced 2-day delivery
You can meet 2-day delivery speeds by outsourcing deliveries to a third-party fulfillment service that distributes stock across a network of warehouses to increase shipping speeds while reducing shipping costs.
Outsourced fulfillment is best suited to online retailers who want to guarantee fast shipping speeds regardless of order volume, season, or customer location. Some third-party fulfillment services also automatically qualify you for fast shipping programs.
At Deliverr, for example, merchants get pre-approved access to marketplace fast shipping programs like Walmart TwoDay Delivery, eBay Fast ‘N Free, 2-day delivery for Shopify stores, Wish Express.
The main takeaway from this article isn’t that 2-day delivery impacts eCommerce conversions - it’s that 2-day delivery is essential for eCommerce success. Customers expect fast shipping speeds, online marketplaces require fast speeds, and your future depends on fast shipping speeds.
About the Author
Rachel Go, senior content marketing manager at Deliverr. Deliverr provides fast and affordable fulfillment for your Shopify, Walmart, Amazon, eBay, Wish, and BigCommerce stores, helping to boost sales through programs like 2-day delivery for Shopify, Walmart 2-day delivery, eBay Fast ‘N Free, and Wish 2-day.
Deliverr’s FBA-like multi-channel fulfillment comes with clear pricing, easy onboarding, and a hassle-free experience so you can focus on delighting your customers and growing your eCommerce business.