Babyshop was founded in 2006 by Linn and Marcus Tagesson with a vision of building the best online store for children's clothing in Nordics.
In order to achieve that, the team behind Babyshop has always paid close attention to the shopping experience, excellent customer service, and high-quality products.
Naturally, the delivery offer has been a big part of it all.
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Babyshop wanted to experiment with the delivery offer to see whether increasing the prices in Sweden would have a negative impact on conversion. The hypothesis was that raising the prices by 10 SEK for orders under a certain cart value would discourage customers from buying, and lower the conversion rate as a result.
To verify this hypothesis, Babyshop turned to Ingrid’s A/B Testing feature. The experiment proved that there is a “sweet spot” where paying for delivery might mean selling fewer products, but still earning more.
Even though the higher shipping price negatively impacted conversion, customers were willing to add more to their carts, which ultimately increased the Average Order Value, shipping revenue, and gross profit per session.
For Babyshop, A/B testing the delivery offer and increasing shipping prices translated into an income that didn’t only cover the shipping costs but also affected the bottom line.
"Ingrid's A/B Testing proved that setting a higher shipping price deviates negatively on conversion but shows an increase in the Average Order Value. These figures have been a strong proof that the delivery pricing strategy should be changed."
