NA-KD increases shipping revenue by 82 percent

How do you build a delivery-first customer journey to keep up with growing consumer expectations, reduce shipping costs and turn deliveries into a revenue driver?

Overview

Born in 2015 in Sweden, NA-KD is taking over the fashion world proving that clothing can be affordable and on-trend. Working together closely with brand ambassadors and influencers from all over the world, NA-KD is currently one of Europe's top 20 fastest-growing companies.

Such rapid growth, however, means quite a few challenges—especially when it comes to the delivery experience.

Challenge

There’s no doubt that offering free shipping is a common practice in e-commerce. For many businesses, though, setting up a free shipping threshold can be challenging, especially without any data insights. NA-KD wanted to make sure that the free delivery offer actually contributes to higher conversion.

On top of that, the team was looking to experiment with different carrier services (including more environmentally-friendly options) and their placement on the checkout page to see how customers would react to them.

Solution

Adding new carrier services and setting the delivery pricing strategy always comes with some uncertainty. To test the delivery offer and make more informed decisions, NA-KD partnered up with Ingrid Delivery Platform.

Thanks to Ingrid’s A/B Testing feature, NA-KD was able to soft launch new delivery methods, experiment with the free shipping threshold, and collect valuable data insights.

Results

The results of the A/B test run for one of NA-KD markets proved that raising the free shipping threshold can increase shipping revenue without damaging conversion rates.

Setting the free shipping threshold

“Thanks to the A/B Testing feature we were able to prove that we can raise the free shipping threshold without damaging the overall conversion. Before that, we were making changes without the possibility of proving we had found the right balance between conversion and increase of the shipping revenue.” Olivia Friberg, Last Mile Coordinator, NA-KD.