Shipping cost and duties/taxes can add up to ~30% of your cart value. Add to that the uncertainity of duties and taxes and your shopping cart "conversions" could be greatly affected.
The Yakit solution
Yakit provides guaranteed landed cost in your shopping cart so your customers can buy with no risk. This positive effect on your "conversions" is standard for all Yakit merchants. Depending on your shipping and product profile, you can increase your "conversions" even more by subsidizing the shipping paid by your customers. Everyone loves free shipping!
Here are some tips on how to improve your Conversions with Yakit.
Take a look at your Analytics tab on your Yakit Shipper Dashboard. Your Conversion rates are seen as shown in the example below.
The Conversion % is the ratio of the number of shipments to the number of times a Yakit quote was shown in the shopping cart. You can also see the split by Service type (Standard, Express, etc.).
Typical customers see a 20% conversion rate. This is higher than the industry average of 6% for Fashions and Accessories. The reason is mainly because of landed cost and the fact that buyers don't perceive any risks. However the damper to the conversion could be the cost of shipping - especially if it is over 20% of product value.
Many Yakit merchants have seen increased conversions (to the extent of doubling the conversion rate) by subsidizing shipping. The Yakit Free/Flat rules (access it on your Channels screen) allow you to do this. Here are some guidelines for what kind of rule to apply. Treat these as mere suggestions. You may want to experiment and determine what works for you.
You can configure these subsidies globally or by country if you are running targeted marketing campaigns.
Here are two strategies you may want to consider for your website:
1. Free Standard shipping over a threshold (could be 0), free Express shipping over a threshold. Duties/Taxes at actuals - passed on to the buyer.
Sample Promotion: Now offering free global Standard shipping. We also offer free global Express shipping for orders over $500.
If your shipping weight is uniform across your product line and your order value is high (say over $100), then this makes sense. You can set a flat rate for Standard (say $10) rather than Free, if your product margins do not compensate for the subsidy.
If your shipping weights or order values vary a lot, then the next strategy is better - as it allows you to better manage your businesss profitability.
2. Subsidized Standard shipping, subsidized Express shipping over a threshold. Duties/Taxes at actuals - passed on to the buyer.
Sample Promotion: See our low global Standard shipping rates. We also offer discounted Express shipping worldwide for orders over $200.
In this setting, your are lowering your Standard shipping rates for all order to promote conversions. Since Express costs more, you may want to tie the subsidy to a certain Minimum Order Value.
As always, help is just a away and we look forward to your feedback.