Zonos Case Study

Low-priced shipping options

How low-priced service level options lead to high value for your company

This merchant was not selling products internationally until they integrated with Zonos.

What happened?

In the beginning, they offered only express service shipping options to their international customers. In the first six months, without a low-priced service level, they received 17 orders and 695 carts abandoned for a conversion rate of 2.4%. Working with their local carrier service rep, they looked for additional options to continue to improve sales and conversions.

Increasing conversion using a low-priced option

Orders increased big time! In the three months following the addition of the low-priced service level, they rocketed to a conversion rate of .1325. With the lower price as the default option in the cart, they went from an average of 2.8 to 17.3 orders per month - a 454% increase! But the story didn’t stop there. Digging a little deeper into the numbers, express package shipments didn’t go down, they went up. The express shipment monthly average before the option was .83; after, it increased to 1.3, a 36% jump.

Why the increase in the small package? It’s about linear thought, not options.

With the linear concept, the consumer is being led down a path to buy or not buy. If the only choice available was a high-priced option, the customer’s next linear choice is to abandon the cart, leading to low conversion. When offering a choice during the checkout process that is more price-friendly, the consumer first decides to stay and not abandon because they have a baseline price they can accept. This then leads to the next step, which allows them to decide on convenience vs. price or urgency vs. economy. That decision is now in the linear ladder for the consumer, which may lead to higher conversion of both shipping options, as we see in this example.

When a low-priced shipping option was added as a service for this eCommerce merchant, conversion exploded and the number of express shipments increased.

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…keeping the international consumer engaged in the checkout process.

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