Shipping costs and delivery options are key decision making factors for online shoppers. With so many possible delivery variations and associated shipping costs to choose from, retailers have to cater to an ever growing list of shopper expectations.
Recent research shows that low cost delivery is a priority for 49 percent of UK shoppers and 47 percent of US shoppers. As many as 64 percent of UK shoppers also said that they chose to purchase a product from one retailer, rather than another, because they provided more delivery options (MetaPack).
Shipping costs can be extremely influential in the purchasing decision of General Merchandise goods, such as household appliances and electricals. Shoppers invariably spend a long time carefully researching these typically expensive, one-off purchases online, often across a myriad of retailer sites. If the same product is stocked across multiple retailers and the shelf price is the same, the availability of various shipping options, and the associated cost of each service, can heavily influence the final purchasing decision.
In the scenario where multiple retailers stock the same product, the retailer which offers the preferred delivery options, or the one which offers the comparable service for the most reasonable price, will secure the sale.
As shipping methods continue to evolve – with the next trend set to be drone delivery – retailers will need to carefully track how their shipping costs may be influencing shopper decisions. Retailers must not only compare the shelf price of the product over time with competitors, but also assess how the total price of the product, plus shipping costs compares. Tracking pricing data in this way, in-line with sales data, will enable retailers to see how shipping costs are affecting overall pricing and in turn understand how this may be impacting conversions.
Track shipping costs over time with Brand View
Shipping costs are available across all Brand View Pricing reports, including historical shipping cost analysis.
Historical shipping costs are presented as a total price (product price + shipping cost) over time in the Pricing History report. The pricing data, inclusive of shipping costs is aggregated at an average retailer, brand, manufacturer or attribute level across each of the Pricing charts.
The presentation of shipping costs in the Daily Price and Promotions analysis includes the shipping cost data for both the start date and end date of the analysis period. Strategic Pricing analysis, including the Pricing Ladder will also feature shipping costs as a component of the total price, as per the filtering options selected.
To add shipping costs to your Pricing analysis, navigate to the filtering options in the Report Editor. Shipping cost options are displayed in the Metrics section – select which shipping option you would like to review in the report – Default, Quickest or less than a specified number of days. The shipping preference selected will then be saved for the analysis and replicated on the report.
If you have any queries regarding shipping costs analysis, speak to your Brand View Account Manager today.
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