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Operator Notes · 3 min read

The Shipping Charge That Killed Our Conversion Rate

A Meta campaign with a strong click-through rate and almost no purchases. The bottleneck was a shipping charge that only appeared at the final checkout step.

The short answer

If your ads perform well and your checkout does not, look at when the shipping charge becomes visible. On one of our own stores, single-unit orders picked up a Rs 45 delivery charge that only appeared at the last step, after the customer had entered their address. Click-through was healthy throughout. Purchases were not, and no amount of campaign optimisation would have found it.

What the campaign data said

The Meta campaign looked fine on every metric available inside the platform. Click-through was strong, cost per click was reasonable, and add-to-cart volume was healthy. Purchases were the outlier.

That shape of data points away from the ad account. Creative and targeting problems suppress clicks and add-to-carts. When people click, browse and add to cart and then stop, the problem is downstream of anything the campaign controls.

Where it was actually breaking

Single-unit orders carried a delivery charge that was not visible until the final checkout step, after the customer had already entered their address. For a low-value single item, that charge was a meaningful share of the order total, and it arrived at the exact moment the customer had invested the most effort.

Multi-unit orders crossed the free delivery threshold and did not carry the charge, which is why the problem was invisible in aggregate. The blended conversion rate looked mediocre rather than broken.

What we changed

  • Made delivery cost visible on the product page rather than at the final step
  • Set the free shipping threshold just above single-unit value, so adding one item removes the charge
  • Showed the gap to free delivery in the cart, stated as what to add rather than what is owed
  • Split reporting by order size, so single-unit and multi-unit conversion were never blended again

The general lesson

Unexpected cost at the final step is the most common cause of checkout abandonment, and it is worse in India than the international literature suggests, because order values are lower and a fixed delivery charge is a larger proportion of the total.

The diagnostic habit worth building is to segment conversion rate by order size and by traffic source before concluding anything about a campaign. A blended figure will tell you performance is average while one segment quietly fails.

Key takeaways

  • Strong clicks with weak purchases means the problem is downstream of the ad
  • A fixed delivery charge hurts most on low-value single-item orders
  • Segment conversion rate by order size, or the failure hides in the average
FAQ

Questions that follow this one

  • Only if your contribution margin absorbs it. The usual better answer is a threshold set slightly above your current average order value, which lifts basket size and removes the surprise at the same time.

  • As early as the product page. Customers accept a charge they knew about and abandon one that appears after they have entered their details.

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