Parcel protection priced at 2% instead of 1%: +2.4% revenue/session
Test run byVisuallyTesting and CRO tool
Commentary byLiftArchiveOur analysis, not theirsFaherty doubled the price of its parcel protection add-on from 1% to 2% of cart value, and revenue per session went up 2.4%.
Visually ran the test for the apparel brand and published it as a Visually case study.
Faherty then made 2% the default and planned to try 2.5% next.
- Revenue per session: +2.4% about a week after the rate went to 2%.
- Conversion rate and add-on take rate were not shared, so we can't tell whether fewer shoppers chose protection at the higher price.
- Sample size and statistical confidence were not shared.
The change
The parcel protection add-on costs 2% of the cart instead of 1%.
Simplified mockup drawn by LiftArchive from the shared screenshots.
Control
The cart offered a parcel protection add-on, run through Onward, priced at 1% of the cart total.
Variant
The same parcel protection add-on was priced at 2% of the cart total.
Why it likely won
Our reading of the result, not the practitioner's claim.
- Parcel protection is a small line next to an apparel order, so going from 1% to 2% may barely register with shoppers.
- If most shoppers who wanted protection kept choosing it, each sale brought in twice the add-on revenue.
- Shoppers buying the add-on are buying peace of mind, which tends to be less price-sensitive than the product itself.
Caveats: The test ran for about a week, and the case study doesn't make clear whether it was a split test or a before-and-after change. This comes from a testing vendor's own case study. Sample size and statistical significance were not shared.
Who ran it
Visually ran this test for Faherty and published the results (Visually case study). The numbers are theirs; the summary and commentary on this page are ours.
Read the original case study on Visually →
How to run this test on your store
- Hypothesis
- If we raise our parcel protection rate from 1% to 2% of cart value, then revenue per session will rise because most shoppers who want protection won't notice or mind the small increase.
- Primary metric
- Revenue per session
- Guardrails
- Conversion rate
- Parcel protection take rate
- Shipping claim or support contact rate
- Who should test it
- Stores that already sell a parcel protection or shipping insurance add-on, especially with higher order values. It probably won't help if the add-on is new to your shoppers, or if most orders are small enough that every extra cent shows.
Questions
How much should I charge for parcel protection?
There is no single right rate. Faherty started at 1% of cart value, saw a 2.4% lift in revenue per session at 2%, and planned to test 2.5% next.
Will a higher parcel protection price hurt conversions?
It can, so watch conversion rate and the add-on take rate together.
Faherty's case study reported only revenue per session, so the effect on conversion is not known.
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