Are you unsure of what delivery options would work best for you and your customers? Is fast or cheap delivery better? Below we’ve broken down how to approach these issues and find the best delivery options for your business.
Delivery options and prices are the final hurdles for an online sale. Offer your customers a few choices in delivery so they can pick the one that best suits their needs.
From the moment a product is ordered, most consumers expect, and are happy to wait, between 2 and 3 days to receive their order. Some consumers are willing to wait a little longer for their purchase if it means they save money on shipping. Other consumers need their items as soon as possible and are willing to pay a premium for next day delivery.
No matter what your customer’s preference is, make sure you offer them a range of delivery choices and price points so they can select the one that is right for them.
The two most common and advised delivery options to consider include:
- Standard delivery: 3-5 business days
- next-day delivery: 1-2 business days (depending on what time the order is placed)
The pros of standard delivery:
- Cheaper to offer
- More delivery options for the customer (including click and collect)
The cons of standard delivery are:
- Longer wait time for the customer
- Not as attractive of a choice when compared to faster shipping times
The pros of next day delivery:
- Quicker turnaround time for the customer
- Utilise it as a marketing tool to differentiate your business from the competition
The cons of next day delivery are:
- More expensive to offer
- May not be available for all products
When it comes to delivery pricing, it is essential to remember that you are competing with other online sellers and brick and mortar stores. Many physical stores offer free shipping on orders over a certain amount, so you will need to price your delivery options accordingly if you want to be competitive.
There are a few things to keep in mind when setting your delivery prices:
- Make sure the price is clear and easy to find
- Keep the delivery prices consistent across all of your products
- Offer a discount for orders that will be picked up in person
- Compare your shipping prices to those of your competitors
There is no one “right” way to do it when setting prices for your delivery options. Many businesses find it helpful to offer a range of prices, depending on how quickly the customer wants their order delivered.
For example, you may want to offer standard delivery for free if the customer is willing to wait 3-5 business days and next day delivery for a fee. Whatever pricing strategy you choose, make sure that you are clear about the delivery times and prices on your website and checkout.
Consumers now demand quick, free, and long-lasting delivery methods. Online retailers are lowering free-shipping thresholds to give free shipping while 65% of consumers check these thresholds before adding something to their basket.
Here are some examples of economically feasible free shipping methods:
- Promotional free delivery, – e.g. offers for new or loyal customers.
- Pricing includes free delivery. – add the delivery cost to the price of the product.
- Subscription-based – free shipping for customers with a membership.
- As a marketing campaign – free shipping for Diwali, Vaisakhi, Eid, Christmas etc.
The Delivery Itself
In 2021 the top 3 options for delivery destinations were
- Home (to a safe space)
- Click and Collect at the retailers’ store