# Parcel protection priced at 2% instead of 1%: +2.4% revenue/session

- Outcome: Won
- Page type: Cart (Ecommerce)
- Elements: Upsells & cross-sells, Pricing, discounts & savings display
- Test run by: [Visually](https://liftarchive.com/practitioners/visually/)
- Commentary by: LiftArchive (our analysis, not theirs)
- Original source: https://visually.io/public/case-studies/faherty
- Page: https://liftarchive.com/test/faherty-parcel-protection-2pct/

Faherty 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.

## Result

**+2.4% revenue/session**

- 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.

## 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)

- 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.

## How to run this test

- 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
- Guardrail: Conversion rate
- Guardrail: Parcel protection take rate
- Guardrail: 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.

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Credit: Visually ran this test and owns the result. Summary and commentary by LiftArchive (https://liftarchive.com/test/faherty-parcel-protection-2pct/).
Usage: Free to use, quote and build on, with credit and a link: name the practitioner or organization that ran the test and link to its LiftArchive page. The results belong to the practitioners who ran and shared them; the summaries and commentary are LiftArchive's.