US shipping price test ($10 vs $8 vs $7)

Before

After

Hypothesis

By lowering the US shipping fee from $10 to $8, we will reduce checkout friction and sticker shock at the shipping step, increasing checkout completion rate and overall conversion rate. The test will determine whether the lift in conversion at $8 offsets the $2 reduction in per-order shipping revenue, optimizing for net revenue per visitor rather than conversion alone.

What we learned

What we tested: A 3-way sitewide US shipping price test, current $10 flat rate (Control) vs $8 vs $7, to find the price that best balances conversion against shipping revenue. Recorded in the fields here: Control ($10) vs the $8 arm. The $7 arm is summarized below so it isn't lost. What happened ($8 vs Control): - Conversion rate: Control 1.41% vs $8 1.51% (+7%) - Revenue per visitor: Control $1.61 vs $8 $1.74 (+8%) - Average order value: Control $114.29 vs $8 $115.32 (+1%) - Net revenue: $69,031.90 vs $71,958.11 The $7 arm (not in the fields above): 41,402 visitors, 619 orders, $70,346.24 net revenue, conversion rate 1.50%, revenue per visitor $1.70, average order value $113.65. It also beat Control, but by less than $8 on every metric. Confidence: $8 beats Control with roughly 88% confidence on conversion rate and 83% on revenue per visitor, directionally strong, but just under the 85% bar on revenue per visitor, so treat this as a solid directional win rather than a statistically locked one. Among all three arms, $8's probability of being the single best option is 55% ($7 is 36%, Control ~9%). Why it matters: Dropping US shipping from $10 to $8 lifted both conversion and revenue per visitor while holding order value flat, the lower fee cut checkout friction without shrinking the basket. $8 outperformed $7, so going all the way to $7 isn't necessary; $8 captures the gain. Recommend rolling out $8 as the new US shipping rate. Note: Ran 6 days (Jun 10 – Jun 16), ~42K visitors per arm. Short runtime, worth confirming over a fuller cycle, but the direction is consistent across conversion rate and revenue per visitor.