Shipping Discount Impact Report

Shipping Discount Impact Report

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Find out if running a discount on shipping is helping or hurting your profits

Today’s consumers expect free and fast shipping when they shop online, but not all businesses can afford to offer that. To find out whether free/discounted shipping will work for you, you have to test. Here’s our report on how to find out.

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How to Interpret the Results

For a more detailed explanation of running the test and using this report, read our article on optimizing your free shipping offers.

The key to finding out how free/discounted shipping will impact your margins is to test. We recommend at least a one month period with the offer and one month without (ideally without any major sales to skew results).

Once the test is complete, this report will help you crunch the numbers on what works best for your business.

Cost of Goods Sold (COGS) – Your total costs associated with producing your products.

Average order value (AOV) – The average amount for each order placed at your store [AOV = Total Revenue / Total Orders]

Conversion rate – How often a visitor to your store ends up making a purchase [CR% = (Total Orders / Total Visitors) * 100]