In the ever-evolving landscape of Black Friday and Cyber Monday (BFCM) pricing strategies, our ten-part series has been a guiding light, offering a diverse range of techniques to help retailers seize the opportunities presented by these massive shopping events. From honing your pricing tools and assessing your market positioning to mastering the intricacies of Google Shopping, competitor metrics, dynamic pricing, and the art of simplifying prices, we've covered an array of strategies designed to prepare you for BFCM.
Now, in Part 8 of our series, we delve into an often-overlooked yet highly impactful strategy that can transform your BFCM performance. It's a pricing tactic that aligns with your Google Shopping strategy, enhances search relevance, and tackles one of the major causes of cart abandonment: offering free shipping.
The Power of Including Shipping in Your Price
When Google Shopping displays products to users, it typically showcases two key price points: the ‘Item Price’ and the ‘Total Price’. The Item Price typically includes VAT but excludes the cost of shipping, while the Total Price encompasses the Item Price plus the shipping charges.
By including shipping costs within your Item Price, you unlock a range of advantages that can reshape your BFCM strategy. This not only boosts your search visibility but also acts as a powerful deterrent against one of the major roadblocks to completing purchases – cart abandonment. This is because it is the Item Price, and the price shown on the product page of your website, that the end consumer will pay, no additional surprises.
Let's delve into the details of why this strategy is a game-changer for BFCM success.
The Benefits of Including Shipping in Your Item Price
- Enhanced Search Visibility: Google's algorithm primarily utilizes the Total Price to determine the search relevancy of products. When your prices already incorporate shipping, you automatically align with the Total Price, giving you a leg up in search results. This enhanced visibility can lead to more clicks and, ultimately, more sales.
- Cart Abandonment Mitigation: Cart abandonment remains a significant concern for e-commerce businesses. One of the key triggers for abandonment is unexpected costs at the checkout, such as shipping fees. 47% (so effectively one in 2) of carts are abandoned because of shipping costs. By offering free shipping or incorporating shipping costs into your prices, you remove a critical decision hurdle for shoppers. When customers see an all-inclusive price from the start, they're more likely to proceed with their purchases.
Optimizing Total Price in Your BFCM Strategy
Tools such as BlackCurve can give you insights into both the ‘Item Price’ and ‘Total Price’ of competitors, so you can assess your competitors free shipping pricing strategies. Furthermore, BlackCurve allows you to dynamically update your pricing, and to consider shipping costs in the calculations, such as when you determine your minimum price.
If your checkout structure mandates the application of shipping costs and removing them is not an option, there's still a strategic approach to consider. We suggest ensuring your Total Price is still matched to your chosen competitors, but you then dynamically subtract shipping from this cost to set your Item Price that is displayed on Google Shopping. Whilst your Item Price may be different from competitors, by factoring in the shipping cost, your products will align with the Total Price that Google Shopping uses for search relevancy. This alignment secures a higher search result position, which, as we've emphasized throughout this series, significantly enhances your chances of conversion.
In Conclusion
In the competitive arena of Black Friday and Cyber Monday, every advantage matters. Integrating shipping costs into your Item Price is a potent strategy for boosting your search visibility, reducing cart abandonment, and ultimately improving your BFCM performance. As you prepare for this crucial shopping season, consider making this strategy a cornerstone of your pricing approach. In a world of complex pricing structures, the simplicity and transparency of this strategy can set you apart from the competition, giving you the edge you need for BFCM success.