{"id":14079,"date":"2019-05-09T13:56:24","date_gmt":"2019-05-09T18:56:24","guid":{"rendered":"https:\/\/www.junglescout.com\/?p=14079"},"modified":"2024-10-09T17:13:04","modified_gmt":"2024-10-09T22:13:04","slug":"fast-shipping-ecommerce-conversions","status":"publish","type":"post","link":"https:\/\/www.junglescout.com\/blog\/fast-shipping-ecommerce-conversions\/","title":{"rendered":"How Fast Shipping Affects eCommerce Conversions"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<html><body><p><strong>By Michael Krakaris, co-founder of <a href=\"https:\/\/deliverr.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Deliverr<\/a><\/strong><\/p>\n<p><span style=\"font-weight: 400;\">We live in an age where products appearing on your computer screen can be on your doorstep in a matter of hours. And that lightning-speed delivery is changing customers&rsquo; expectations.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, customers want more than a great price. They want fast shipping too.&nbsp;<\/span><span style=\"font-weight: 400;\">That&rsquo;s why price <em>and<\/em> shipping time are the <\/span><a href=\"https:\/\/deliverr.com\/blog\/cart-abandonment\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">biggest influencers<\/span><\/a><span style=\"font-weight: 400;\"> for eCommerce conversions<\/span><span style=\"font-weight: 400;\">, <\/span><span style=\"font-weight: 400;\">making speed of delivery crucial to the success of your business.&nbsp;<\/span><\/p>\n<h2><strong>The history of fast shipping<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">As recently as a decade ago, if you wanted something quickly you&rsquo;d go to the store. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Online shopping, on the other hand, was saved for items you didn&rsquo;t need right away. And with delivery times ranging from one to two weeks, that made sense.&nbsp;<\/span>But then <a href=\"https:\/\/www.amazon.com\/b?node=15247183011\" target=\"_blank\" rel=\"noopener noreferrer\">Amazon Prime<\/a> came along, <span style=\"font-weight: 400;\">changing the landscape of eCommerce shipping <\/span><span style=\"font-weight: 400;\">forever. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here&rsquo;s how it evolved<\/span><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">February 2005<\/span><span style=\"font-weight: 400;\"> &ndash; Free two-day and discounted one-day shipping.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">December 2014<\/span><span style=\"font-weight: 400;\"> &ndash; One and two-hour deliveries in New York. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">May 2015<\/span><span style=\"font-weight: 400;\"> &ndash; Free same-day delivery rolled out.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">April 2016<\/span><span style=\"font-weight: 400;\"> &ndash; Free same-day delivery extended. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Mid-2016 &ndash; One-hour delivery extended across the States.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Today, <a href=\"https:\/\/kibocommerce.com\/resource-center\/consumer-trends-report\/?utm_source=kibo&amp;utm_medium=pr\" target=\"_blank\" rel=\"noopener noreferrer\">63% of consumers<\/a> expect <\/span><span style=\"font-weight: 400;\">fast delivery, wherever and whenever they buy.<\/span><\/p>\n<h2><strong>Fast shipping programs<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">But Amazon isn&rsquo;t the only one jumping on the fast-shipping train. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Walmart and eBay also offer their customers fast shipping, with various benefits for both online shoppers and sellers.<\/span><\/p>\n<p>This is what each platform offers:<\/p>\n<h4><span style=\"font-weight: 400;\"><strong>Amazon Prime<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">For a monthly or annual fee, Amazon Prime customers get free two-day shipping (along with other benefits). As for <a href=\"https:\/\/www.junglescout.com\/blog\/how-to-sell-on-amazon-prime\/\" target=\"_blank\" rel=\"noopener noreferrer\">Amazon sellers<\/a>, if they are a part of the Prime program, they: <\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">receive an Amazon Prime badge on their listing, <\/span><\/li>\n<li><span style=\"font-weight: 400;\">tend to rank better in keyword searches, <\/span><\/li>\n<li><span style=\"font-weight: 400;\">and have an increased chance of <\/span><span style=\"font-weight: 400;\">winning the buy box<\/span><span style=\"font-weight: 400;\">. <\/span><\/li>\n<\/ul>\n<h4><span style=\"font-weight: 400;\"><strong>Walmart&rsquo;s Free 2-Day Shipping<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Guaranteeing customers two-day delivery speeds, Walmart offers its <a href=\"https:\/\/help.walmart.com\/app\/answers\/detail\/a_id\/1544\/~\/free-2-day-shipping\" target=\"_blank\" rel=\"noopener noreferrer\">shipping program<\/a> without membership fees or a minimum spend amount. If you are a Walmart seller, you get:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> a green fast-shipping tag, <\/span><\/li>\n<li><span style=\"font-weight: 400;\">high search result placement, <\/span><\/li>\n<li><span style=\"font-weight: 400;\">and buy box eligibility. <\/span><\/li>\n<\/ul>\n<h4><span style=\"font-weight: 400;\"><strong>eBay Guaranteed Delivery<\/strong><\/span><\/h4>\n<p><a href=\"https:\/\/www.ebay.com\/help\/selling\/shipping-items\/offering-ebay-guaranteed-delivery?id=4645\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">eBay Guaranteed Delivery<\/span><\/a><span style=\"font-weight: 400;\"> allows shoppers to filter and receive products within one, two or three days. And sellers on eBay receive:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> search placement in filtered search results, <\/span><\/li>\n<li><span style=\"font-weight: 400;\">and fast-shipping tags. <\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As you can see, while there are slight differences between the three programs, the results of participating in one of these plans are the same: fast shipping for buyers, and more sales for sellers. &nbsp;<\/span><\/p>\n<h2><strong>Benefits of fast shipping for online marketplaces<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">So why are online marketplaces investing in fast shipping programs? These are just some of the advantages:<\/span><\/p>\n<h4><strong>1 &ndash; Differentiation<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">Amazon, Walmart, and eBay are in direct competition with each other. They all have a name consumers trust, and all have a huge selection of products. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Therefore, instead of competing on price (which impacts profits), they&rsquo;re competing on customer service. They know that <\/span><span style=\"font-weight: 400;\">free and fast delivery is the <\/span><a href=\"https:\/\/www.walkersands.com\/wp-content\/uploads\/2018\/07\/Walker-Sands_2018-Future-of-Retail-Report.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">top purchase driver<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><\/p>\n<h4><strong>2 &ndash; Customers<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">eCommerce platforms like Amazon, Walmart, and eBay know they have to attract loyal customers in order to be successful. Offering fast-shipping programs does just that. They generate repeat purchases which, in turn, drives profits. <\/span><\/p>\n<h4><strong>3 &ndash; Sellers<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">Finally, the big three know that having a fast-shipping program attracts online sellers who are serious about growing their business. Having quick delivery times improves a seller&rsquo;s listing visibility and increases customer satisfaction. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In other words, fast shipping enhances product performance and grows a seller&rsquo;s profits. And what seller wouldn&rsquo;t want to be a part of that?<\/span><\/p>\n<h2><strong>Benefits of fast shipping for sellers<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">But it&rsquo;s not just the various marketplaces benefiting from fast-shipping programs. Sellers offering quick delivery also enjoy multiple perks:<\/span><\/p>\n<h4><strong>Increased conversions<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">As I mentioned earlier, fast shipping results in increased conversions<\/span><span style=\"font-weight: 400;\">. And, depending on the program, it can also mean a listing receives a fast-shipping tag, better search result rankings, filtered search result placement, and an increased chance of <\/span><span style=\"font-weight: 400;\">winning the buy box<\/span><span style=\"font-weight: 400;\">. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Together, these raise the visibility and attractiveness of a seller&rsquo;s products, particularly when compared to competitors who are not enrolled in these fast-shipping programs.&nbsp;<\/span><\/p>\n<h4><strong>Avoiding price wars<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">Because of the intense competition on Amazon, many sellers enter into price wars. However, this rarely does more than drive everyone&rsquo;s profits down during the race to the bottom.&nbsp;<\/span><span style=\"font-weight: 400;\">Savvy online sellers avoid price wars by competing on service instead. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">By offering value in the form of fast shipping, these shrewd sellers generate positive reviews and healthier earnings. <\/span><\/p>\n<h4><strong>Psychology<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">According to one Harvard professor, 95% <\/span><span style=\"font-weight: 400;\">of buying decisions are made <a href=\"https:\/\/www.inc.com\/logan-chierotti\/harvard-professor-says-95-of-purchasing-decisions-are-subconscious.html\" target=\"_blank\" rel=\"noopener noreferrer\">subconsciously<\/a>. That means shopping isn&rsquo;t just an economical action; it&rsquo;s also psychological.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And how does fast shipping play into that? <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Quick-delivery programs appeal to a variety of our emotions, including a sense of urgency, trust, risk-aversion, and the need to find value. It&rsquo;s these emotional triggers that convince the brain that buying from a seller offering fast shipping is better than buying from someone who doesn&rsquo;t.<\/span><\/p>\n<p>Fast shipping meets our subconscious needs.<\/p>\n<h2><strong>How to get started with fast shipping<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The best part about fast shipping is that it can be a quick, easy, and affordable way for eCommerce sellers to start driving conversions. If you&rsquo;re a seller and you&rsquo;re not set up for fast delivery already, here are two ways you can start:<\/span><\/p>\n<h4><strong>1 &ndash; Use the marketplace programs available to sellers<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">Some marketplaces have fulfillment options that give you access to their fast shipping tags. For example, using <a href=\"https:\/\/services.amazon.com\/fulfillment-by-amazon\/benefits.html\" target=\"_blank\" rel=\"noopener noreferrer\">Fulfillment by Amazon<\/a> (FBA) means you qualify for their Prime program and its tag<\/span><span style=\"font-weight: 400;\">.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Other marketplaces, like Walmart, use fulfillment partners. Case in point, all sellers who employ Deliverr are <\/span><span style=\"font-weight: 400;\">pre-approved for <a href=\"https:\/\/deliverr.com\/walmart\/\" target=\"_blank\" rel=\"noopener noreferrer\">Walmart&rsquo;s<\/a> fast-shipping program. Like Amazon FBA sellers, they get the free two-day shipping tags automatically<\/span><span style=\"font-weight: 400;\">. The same holds true for <\/span><span style=\"font-weight: 400;\">eBay&rsquo;s Guaranteed Delivery three-day tags as well.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And even if you fulfill your orders yourself, you still have options. Amazon, for instance, has a Prime program for self-fulfilling sellers, though you do have to meet the following requirements to gain acceptance into the plan:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A professional seller account;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">30 premium-shipped fulfilled orders over the past 30 days; <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">On-time delivery rate of +96% (99% during trial);<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Cancellation rate of 0.5%;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tracking ID on +94% of orders. <\/span><\/li>\n<\/ul>\n<h4><strong>2 &ndash; Outsourcing<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">But if you can&rsquo;t use one of the marketplace options to help with delivery, you can outsource to a fulfillment partner. Just make sure they can guarantee your shipping speed and metrics.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can also choose to do a mix between the different options, such as FBA for Amazon orders, Deliverr for Walmart and eBay orders, and self-fulfillment for Shopify. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ultimately, you want to find the setup that works best for you and your order volume.<br>\n<\/span><\/p>\n<blockquote>\n<p style=\"text-align: center;\">Interested in outsourcing?<br>\nContact <a href=\"https:\/\/support.deliverr.com\/hc\/en-us\/requests\/new\" target=\"_blank\" rel=\"noopener noreferrer\">Deliverr support<\/a>, mention Jungle Scout,<br>\nand get <strong>THREE months of FREE storage!<br>\n<\/strong>Offer ends May 22nd, 2019<\/p>\n<\/blockquote>\n<h2><strong>Measure your profits<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Finally, to make fast shipping work for you, you need to ensure that your profits aren&rsquo;t being impacted by meeting those tight delivery deadlines. So e<\/span><span style=\"font-weight: 400;\">valuate your fulfillment method. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Are you overspending on warehousing, fulfillment, packaging, and\/or staffing costs when cheaper options are out there?&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To help you figure out how much you&rsquo;re really spending, I recommend using a <\/span><a href=\"https:\/\/deliverr.com\/fulfillment-cost\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">fulfillment calculator<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><span style=\"font-weight: 400;\">There could be a way for you to cut your fulfillment process costs!<\/span><\/p>\n<h2><strong>Key takeaways<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The bottom line here is that fast shipping matters. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Increasing conversions, boosting return customers and keeping up with (or ahead of) the competition; that<\/span><span style=\"font-weight: 400;\">&lsquo;s why fast-shipping programs are so popular, and why providing and maintaining speedy delivery standards is so important.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fast shipping is great for business!<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>About the Author<\/strong><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-14308 \" src=\"https:\/\/www.junglescout.com\/wp-content\/uploads\/2019\/04\/Michael-Krakaris.jpg\" alt=\"How Fast Shipping Affects eCommerce Conversions\" width=\"205\" height=\"205\"><\/p>\n<p><span style=\"font-weight: 400;\">Michael Krakaris is one of <\/span><a href=\"https:\/\/www.forbes.com\/30-under-30\/2019\/retail-ecommerce\/#746c78d45f83\"><span style=\"font-weight: 400;\">Forbes&rsquo; 30 Under 30<\/span><\/a><span style=\"font-weight: 400;\"> and the co-founder of Deliverr. <\/span><\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"<p>By Michael Krakaris, co-founder of Deliverr We live in an age where products appearing on your computer screen can be on your doorstep in a matter of hours. And that lightning-speed delivery is changing customers&rsquo; expectations.&nbsp; Now, customers want more than a great price. They want fast shipping too.&nbsp;That&rsquo;s why&#8230;<br \/><a class=\"js-read-more\" href=\"https:\/\/www.junglescout.com\/blog\/fast-shipping-ecommerce-conversions\/\">Read More<\/a><\/p>\n","protected":false},"author":71,"featured_media":14322,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[523,24],"tags":[972,504],"customer-segment":[],"content-type":[],"topic":[],"feature":[],"product":[],"seller-activity-pain-point":[],"persona":[],"customer-type":[],"data":[],"other-tag":[],"business-model":[],"platform":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.9 (Yoast SEO v24.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>eCommerce Conversions Affected By Fast Shipping<\/title>\n<meta name=\"description\" content=\"Shipping time and price are the biggest influencers for eCommerce conversions, making fast shipping crucial to the success of your business.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.junglescout.com\/blog\/fast-shipping-ecommerce-conversions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"eCommerce Conversions Affected By Fast Shipping\" \/>\n<meta property=\"og:description\" content=\"Shipping time and price are the biggest influencers for eCommerce conversions, making fast shipping crucial to the success of your business.\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.junglescout.com\/blog\/fast-shipping-ecommerce-conversions\/\" \/>\n<meta property=\"og:site_name\" content=\"Jungle Scout\" \/>\n<meta property=\"article:published_time\" content=\"2019-05-09T18:56:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-09T22:13:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.junglescout.com\/wp-content\/uploads\/2019\/05\/speed.png\" \/>\n\t<meta property=\"og:image:width\" content=\"890\" \/>\n\t<meta property=\"og:image:height\" content=\"495\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Michael Krakaris\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Michael Krakaris\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.junglescout.com\/blog\/fast-shipping-ecommerce-conversions\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.junglescout.com\/blog\/fast-shipping-ecommerce-conversions\/\"},\"author\":{\"name\":\"Michael Krakaris\",\"@id\":\"https:\/\/www.junglescout.com\/#\/schema\/person\/520f116da0ff5bc526b4d9f4935186ab\"},\"headline\":\"How Fast Shipping Affects eCommerce Conversions\",\"datePublished\":\"2019-05-09T18:56:24+00:00\",\"dateModified\":\"2024-10-09T22:13:04+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.junglescout.com\/blog\/fast-shipping-ecommerce-conversions\/\"},\"wordCount\":1273,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.junglescout.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.junglescout.com\/blog\/fast-shipping-ecommerce-conversions\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.junglescout.com\/wp-content\/uploads\/2019\/05\/speed.png\",\"keywords\":[\"Listing Optimization\",\"Shipping\"],\"articleSection\":[\"Guest Posts\",\"Importing &amp; 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