How to successfully market logistics and increase e-commerce KPIs - that's how it works in 2024!
How does my international logistics setup influence my online shop key figures?
The following table shows various important key figures relevant to e-commerce and how these are influenced by logistics. National shipping is not a benchmark here, as the service levels are largely homogeneous. In an international context, however, things look different - especially when a customs barrier is added.
Shopper should know that you invested in DDP-logistics
What do we mean? Here's a little anecdote.
Let's say you are a hotelier or marketing manager for a hotel. If you take your job seriously, you will constantly try to improve the service and experience you provide to your guests.
So you find out what needs your potential hotel guests have. Then it's time for implementation and you invest in the renovation or expansion.
What comes next? Right!
Advertise your logistics
You will announce through all marketing channels that your hotel offers the greatest experience and outshines the competition. Don't hide your investment in customer satisfaction. Whether hotel or e-commerce company. The one or other key performance indicator will thank you.
However, what we regularly see with online retailers is this:
Retailers are investing in DDP (Delivery Duty Paid) logistics. This means nothing other than that you take care of the needs of your international customers. In concrete terms, you ensure that your goods are delivered without your customers having to pay customs duties, VAT and fees.
By the way, if you want to know more about optimising logistics for cross-border e-commerce merchants, we recommend our blog article about optimised logistics.
So far so good…
However, what many merchants forget to do is capitalise on their investment.
They have spent IT resources, they have spent project management resources, they are now paying for customs clearance services, but they simply forget to make their website visitors aware that they can basically shop with them as if they were ordering something in their neighbouring town.
We will illustrate this below using the example of Destination Switzerland. This means that German or Austrian e-commerce retailers, for example, would like to ship their goods to Switzerland. Why did we choose this example?
- From a German and Austrian perspective, Switzerland is an extremely interesting and often underestimated market. In our blog, we tell you why exporting to Switzerland is worthwhile.
- Switzerland has a customs border. If cross-border e-commerce retailers operate a sub-optimal setup, this has consequences for their customers. As a retailer, you need to be aware of what these are. You can find all the relevant information in our article on Switzerland's customs regulations.
- Your customers must pay customs duties (depending on the goods and weight), VAT (usually 8.1 %) and the customs clearance fee (CHF 11.50) at the front door if the goods are subject to customs duties. This is called the COD or Cash on Delivery process (this is not only common in Switzerland).
- If your customers are not at home, the goods will be taken back and notified!
- Swiss customers do not want to pay customs duties.
The consequences described above are ABSOLUTELY NOT POPULAR among Swiss shoppers. Therefore, they want clarity about the corresponding delivery conditions. Just to make this clear, this COD process is so unpopular that Swiss shoppers, compared to German shoppers, are much more concerned with the delivery conditions and search for the relevant information.
Conversion rate drops if nothing is stated about customs duties
According to the International Postal Corporation, conversion rates drop significantly when Swiss shoppers are unsure of the full delivery cost or know they will have to pay duties and taxes (and an additional fee) at their doorstep.
83% of customers said they would not order from a shop again if they had a bad delivery/customs experience.
This is exactly where your opportunity lies - if you deliver DDP!
You have invested in DDP logistics for the benefit of your customers. Then let them know! This way you can push your conversion rate! Once you realise the pain your Swiss customers are experiencing, it's not rocket science.
Optimise logistics and increase conversion in the customer journey
You need to make it clear at all touchpoints of your customer journey that your Swiss customers have no reason to fear any inconvenience.
Important stages in the customer journey
Modern customer journeys can be very extensive and detailed. In the context of conversion rate optimisation via logistics promotion, we don't want to make a science out of it. We have therefore divided the customer journey into three steps and added the point of analysis.
Have you invested in your e-commerce infrastructure but lack the strategies to make the most of it? Contact us on WhatsApp and we'll help you get the most out of your investment.
We would now like to give you specific examples of how your logistics could be advertised in the individual touchpoints:
How can I optimise my click-through rates (CTR) with logistics?
A DDP logistics application gives you a better click-through rate.
Remember: Swiss shoppers hate paying VAT and customs duties at their front door. If you tell them in the search results that this won't happen with you, your click-through rate will go up significantly.
You should test this approach in all formats - it will make a difference 😉
Promote your customer-friendly shipping solution in your ads. You can also promote your optimised logistics for the relevant country on social media with appropriate notices and news. If you are active on Amazon or other marketplaces, you can also refer to your logistics in your ads there if you can play them out for specific target countries.
How can I use my homepage to push my conversion rate and other important metrics with my logistics?
Use your website to communicate your logistics. Swiss customers can be identified with geotracking. This allows you to immediately communicate on your homepage that you ship DDP.
Note: We use DDP here because it is the technical logistics term. You should never use it on its own. It is better to explain what your customer actually gets out of it - something like:
- "Duties & taxes included"
- "Everything is included with us - no more paying at the door"
- "Duties & taxes included - shop like in the neighbouring town"
In practice, this could look like a short text that is statically implemented at the top of your shop.
Another even clearer approach would be to fly in a banner. This then draws attention to your great service for Switzerland in a short and crisp manner.
Would you like to increase your e-commerce KPIs for your Swiss shipping? Then use the Optimizer to find out how you can optimise your logistics setup.
Use your website to promote optimised logistics
How can I use the FAQ page to organically position my logistics? Use FAQs to answer questions about your logistics processes.
Put the logistics information in the FAQs. Just write a bit more text by using the keywords DDP, customs included, VAT and duties related to your shop/brand and Switzerland.
This will give you SEO power - for example, if someone is interested in: "Do I have to pay duties and taxes for brand XYC in Switzerland?", they could end up in your shop's FAQs and get the answer immediately.
How can I use my blog to rank better organically with my logistics? Use your blog to rank better with logistics.
You have a blog, great!
Use a blog article to promote the frictionless DDP approach your shop has invested in - like this: "NO MORE VAT and customs payments at the front door! We're proud to announce that we now deliver headache-free to Switzerland - we've invested in our logistics to make your shopping experience even smoother."
Again, use lots of DDP keywords that relate to your products - e.g: "No more paying duty and tax on your egg whites at your doorstep. We now deliver DDP - this means that duties and taxes are included in the price."
How can I use my delivery terms page to rank better organically with my logistics?
Advertise your customer-orientated logistics in the "Delivery terms and conditions". As a formality, you should also include your DDP service in the terms of delivery and in the general terms and conditions. Again, use this text-intensive part of your website to optimise your SEO in relation to your logistics.
Of course, the same principle also works on your retailer pages or directly on the product pages of the marketplaces. Amazon and other candidates allow you to place such messages in various places.
How does checkout optimisation work by promoting logistics?
Checkout - important for ALL parties involved! Remember that! The checkout is the most important moment. Make it super-turbo-mega-glass clear to buyers that they won't have to pay any customs duties, taxes or fees at their front door!
As a best practice example, you can take a look at the case study from iHerb.
iHerb uses a mouse-over effect to show that Swiss customers no longer have to pay customs duties and taxes. Of course, you can also do this with a static message: Increase customer satisfaction with this checkout trick.
If you are already investing in the sustainability of your online trade, then advertise this in your online shop too. If sustainability and online retail don't go together for you, I recommend reading our guide on how to create a sustainable online shop.
Analyse your optimisations to become even better
The right choice of words can vary greatly depending on the target group. We would therefore advise you to carry out A/B tests.
Simply vary your texts - e.g:
- Variant A: Customs duties & taxes included
- Variant B: No more customs duties to pay at the front door
You can also vary the presentation:
- Banner vs. text elements
- static vs. dynamic
- black and white vs. colour
- Exit-intent pop-ups
- Logistics has an impact on your e-commerce KPIs
- If you offer good cross-border e-commerce logistics, you should definitely promote it
- With your logistics setup, you can increase your click-through rate and maximise your conversion optimisation (CRO)
- You can draw your customers' attention to your great logistics at various touchpoints
- You have a wide range of options for highlighting your great logistics at these touchpoints.
- Would you like to export to Switzerland, but the costs are a thorn in your side? In our white paper, we show you in 6 steps how you can save costs efficiently - simply and easily!
- We look forward to helping you. We are eager to provide our customers with continuous support - including communication on your website - why are we doing this? To increase conversion with the right partner.
