Return Shipping Insurance

Lafumafurniture.com is testing a novel concept (observe orange box below)-

My first thought was, “Yikes, this is a horrible idea.  This call to action is casting purchase doubt less than 5 seconds of me landing on the site.  I should blog about how terrible this idea is.”

But then, when I read the details, I had a change of heart-

Couple of things stand out-

1. By using the language “As an experienced online retailer…” the company is letting shoppers know this policy has been developed after analyzing years of shopper data.  The tone is confident.

2. The retailer shares shopper testimonial.

3. They show an example to illustrate potential savings (pay $5 now and save $40 later).  As we’ve discussed before the brain is wired to be strongly risk averse.  The without return insurance option is interpreted as a $35 loss.

Lafumafurniture.com sells recliner chairs.  What’s key here is that the retailer has developed a strategy that complements their product line: heavier items with higher ticket prices.

8 thoughts on “Return Shipping Insurance

  1. This is definitely a clever idea. It’s been my experience that return rates on bulky items are usually low to begin with. This gives the customer some of the assurance that Zappo’s offers with a little extra revenue on the side.

    • Exactly. What Lafumafurniture.com needs to do is this– clicks to Return Shipping Insurance should be tracked as an Event in Google Analytics. Then the e-tailer can see how many visitors who read Return Shipping Insurance pop-up text converted and their Average Order Value.

  2. How have customers responded well to the addition of this insurance? I agree that it is an attractive offer, but do you find that many customers utilize this option? Do you actively promote this? Any feedback would be great to share with clients here at Dydacomp.

    Thanks for sharing this article!

    Molly Griffin
    http://www.dydacomp.com

    • Hi Molly,

      I don’t have access to lafumafurniture.com data so I can’t confirm if the insurance offer is working. Maybe they’re running it as a test. I’ll check their site few months from now and if the insurance is still promoted on the homepage I’ll be certain it’s working. I’ll update you via email.

      Rishi

  3. Great post. I think that more and more eCommerce businesses are starting to truly understand the importance of offering their customers right right value to them. I know that personally, return shipping costs are a major pain and additional options like this return shipping insurance are a great idea that could really save the day. Excellent article. Thanks for sharing.

    • Thanks for commenting, Kevin. All companies need to do is open their minds and test new ideas. If return shipping insurance isn’t net positive they can remove it.

  4. It seems as if there is strategy behind what they are doing. No one likes to pay for shipping and thus ecommerce businesses, like Zappos, should promote free shipping so that they can retain and acquire new customers.

    Great read. Thanks for sharing.

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