The data from this post is from a consumer research study that we performed from September to November 2024. We partnered with Digital Velocity and Audience Audit to prepare the research and gather the data with a margin of error of +/- 2.3 at a 95% confidence interval. We will be publishing the full research later this year.
Do you ever wonder why shoppers get all the way to checkout on your website and then just disappear?
You’re not alone. Cart abandonment is a huge headache in eCommerce, and if you dig into the data, one reason keeps popping up are the shipping costs. More specifically, unexpected shipping costs.
In fact, our research found that 61% of consumers say they’ve abandoned a cart for exactly that reason. That’s a huge chunk of your potential revenue walking away. The truth is, though, even if your products are top-notch and your site is seamless, a poorly thought-out shipping strategy can sabotage your sales.
In this post, we’ll be breaking down how shipping costs might be killing your conversions and what you can do to stop it. Let’s fix the leaky bucket and start turning more browsers into buyers.
Why Shipping Costs Are Driving Away Customers
So, let’s start with why this is happening. Let’s be honest, no one likes surprises at checkout–us included. And when that surprise comes in the form of unexpected shipping fees? That’s a fast way to lose a sale. Customers head to your site, fall in love with your products, load up their cart, and then bail once they see the shipping cost. It happens all the time. Consumers really don’t like shipping fees. In fact, 68% of shoppers say that unexpected fees are the reason they abandon their carts. That’s not just a stat; it should be a wake-up call. So, let’s really dig into the reasons why this happens so we can better understand how to address the issue:
Sticker Shock at Checkout: You’ve probably done it yourself. You add everything you want to your cart, excited to hit “Buy Now,” and then—bam—shipping fees, taxes, maybe even a handling charge you didn’t see coming. This is an instant buzzkill. It doesn’t matter if the product price was fair. When customers feel blindsided, they will start questioning whether they really need that purchase at all.
The Mental Block Around Paying for Shipping: So, here’s the thing, even reasonable shipping costs feel annoying to most consumers. Free shipping has become the expectation, not the exception. So, when someone sees a $7.95 shipping fee, it doesn’t matter that it’s totally justified based on weight or distance. To many consumers, it feels like a penalty. That little number can trigger a mental “nope” and send them packing (without their order).
The Amazon Effect: Let’s not pretend we’re not all living in Amazon’s shadow. Prime’s “free” two-day shipping has spoiled everyone. Even mid-sized brands are expected to match that magic trick, and not everyone can. Your $6 shipping charge might be perfectly fair, but compared to “free” from Amazon, Target, or Walmart? It suddenly looks steep and unfair to consumers.
How Shipping Costs Actually Lower Your AOV: Here’s a twist… Did you know that high shipping costs don’t just hurt conversions? They hurt your average order value, too! When customers are faced with a high total at checkout, their first instinct is to start removing items from their cart to make the price feel more manageable. So instead of upselling or encouraging more purchases, high shipping fees actually push customers to buy less, or to even decide they don’t want to buy from you at all.
How to Reduce Cart Abandonment Due to Shipping Costs
Okay, so we know shipping costs are a major conversion killer. How do we fix this? We get it, you don’t want to keep losing out on customers who are clearly interested enough to add products to their cart. The good news? There are smart and strategic ways to handle shipping costs that won’t wreck your margins, as well as boost your average order value. Here are a few ways to do that:
1. Offer Free Shipping (But Make It Work for You)
Free shipping doesn’t have to mean you’re eating the cost. You can bake it into your product pricing or offer it on orders over a certain amount, such as “Free shipping over $75.” That not only softens the blow of shipping for the customer, but it also encourages them to spend more (hello, higher AOV). Want to test the waters? You can also try a limited-time promo. A seasonal “free shipping weekend” can be the nudge someone needs to finally hit that buy button. This can also create returning customers if they get to try your product and love it!
2. Be Upfront About Shipping Fees
We’ve talked about this, but again, no one likes surprises at checkout. If you have to charge shipping, just be clear about it. So, add a shipping calculator to your product pages or cart that updates in real time. Just don’t hide fees until the last second. It really hurts trust and makes your brand look shady, even if that’s the farthest thing from the truth. The truth is that people want to do business with places that are transparent. Transparency builds confidence, and confident shoppers are more likely to convert.
3. Give Customers Options
Shipping should not be a one-size-fits-all thing. Some folks are fine waiting a week if it means cheaper rates, while others will happily pay for next-day delivery. Offering a few choices (and being clear about delivery timelines) gives customers a sense of control. Also, if you have a local presence, add a “Buy Online, Pick Up In-Store” option! This has become even more popular since COVID opened businesses up to pick up orders.
4. Use Free Shipping as a Strategic Upsell
Here’s a tip that works really well: set a threshold for free shipping and make it super obvious. Something like, “Only $12 away from free shipping!” along with a progress bar in the cart can turn an almost-sale into a bigger one. Even offering a partial shipping discount. Let’s say, $5 off, can create a similar incentive without taking a full hit on your margins.
5. Consider a Membership or Loyalty Model
If you’ve got customers that keep coming back for more, give them a reason to stay. Try something like a loyalty program or subscription. You could even offer things like free shipping that can build better value for them.
One more stat worth noting. Our research showed that 56% of shoppers buy 2–3 products per session on average. That means if you’re using shipping strategically, you’re not just reducing cart abandonment. You’re also giving them a reason to buy more.
Winning Back Abandoned Carts with Smart Shipping Strategies
So, we’ve covered why shipping is scaring people off and a few ways to fix that with the shipping costs. However, let’s talk more about smart shipping strategies.
So, if a customer decides to abandon their cart, what should you do? Well, to start, don’t freak out. This can be fixed, possibly. If you can put together a smart follow-up email, it can really help. Send them an email and consider sending a free shipping incentive or even a small discount. Then pair it with a little urgency, like, “Hey, your cart’s about to expire!” You’d be surprised how well that nudge works. Adding a few customer reviews to that email doesn’t hurt either. It reinforces trust right when customers are on the fence.
Another way to bring people back into the fold is by creating a sense of FOMO. So, try offering a time-sensitive shipping promo. For example, something like, “Free Shipping for the next 24 hours!” A countdown or exit pop-up when they’re hovering over that close tab button can be super effective.
Guess what? Offering hassle-free returns can help too! It turns out that 47% of consumers say easy returns play a huge role in whether or not they’ll complete a purchase, according to our research. So, when you remove that risk and give them a better shipping offer? That abandoned cart starts looking a lot more attractive to the customer.
Conclusion
If shipping costs are cutting into your conversions, it’s not just a logistics issue it can be a growth opportunity. The truth is, how you handle shipping can either make or break the customer experience. So, be up front about costs. Don’t hide it from your customers.
At the end of the day, it’s about building trust, reducing friction, and giving your customers more reasons to hit “Complete Purchase” instead of walking away. And if all of this feels a little overwhelming? That’s where we come in. At Stryde, we help brands like yours turn challenges like this into conversion wins.
Want to talk through a better shipping and cart recovery strategy? Let’s connect. We’d love to help you keep more of those hard-earned clicks with our experienced team here at Stryde.
