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Chubbies

Shortens
 Their Delivery Time & Increases Conversion

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Case Study

For men's lifestyle brand Chubbies, it’s all about the weekend. Their core customer base are 15 - 35 year old active males who spend their weekends hanging out with friends outdoors.

"

After a decade of outfitting our customer for their epic weekends, we’ve realized the community has given us a lot of trust and relies on us to maximize their most memorable moments in life. As such we’re always on the hunt for tools and partners who can help us improve their interactions with our brand."

Rainer Castillo

Co-founder, Chubbies

Before working with Maergo, Chubbies offered free standard shipping (3-4 business day service) on all orders over $35, with 2-day expedited and overnight shipping options priced at $20 and $25 respectively. However, with a historic AOV of $80, only 2% of Chubbies customers were choosing to spend $20+ upgrading to a faster service.

Chubbies, believed if they could shorten their standard free shipping window by a day, it would have a positive impact on conversion.
It would also reduce “where’s my order” support tickets and increase the number of orders arriving before the weekend, crucial to fulfilling the brand promise of “building the perfect product for the weekend”.

To assess this hypothesis, they A/B tested Maergo’s 2-3 day nationwide shipping service against their incumbent 3-4 day service. 50% of customers were placed in the test group and were eligible for 2-3 day shipping on orders over $75 (instead of the standard 3-4 day free service). These customers were shown a banner on the homepage advertising the promotion, as well as a reminder presented directly below the add-to-cart button on the product detail page.

The results of the A/B test were off the charts:

0 %

increase in conversion rate from the PDP to placing an order for customers that were offered the faster 2-3 day shipping

0 %

increase in conversion rate from the checkout to order by offering faster 
2-3 day shipping

But it wasn’t just an increase in conversion that made this test successful. Customers who were offered 2-3 day shipping on orders >$75 had an AOV of $97.75, a 4% increase over the control group.

After 3 weeks, it was clear that offering faster shipping not only drove conversion and top line revenue growth for Chubbies, it in also created a better experience for their customers.

Chubbies customers are now presented with both the 3-4 and 2-3 business day delivery options during checkout. Customers spending over $75, qualify for the faster (Maergo) option for free, while customers spending between $35 - $75 can accelerate their shipping for only $4.99! That’s a $15 savings over their guaranteed 2-business day service.

Cart > $75

Shipping Method

Order placed after 3pm ET ship the next business day. Business days are Mon-Fri excluding holidays. Expedited Two Day and Next Day shipping options can not be delivered to PO boxes, please use a physical address when choosing one of those methods.

Cart $35 - $75

Shipping Method

Order placed after 3pm ET ship the next business day. Business days are Mon-Fri excluding holidays. Expedited Two Day and Next Day shipping options can not be delivered to PO boxes, please use a physical address when choosing one of those methods.

"

Over the years we’ve been able to decrease our transit time from 3-7 days, to 5 days, and then 3-4 days. As those transit times lowered, web performance increased so it’s no surprise that we had similar results when introducing the Maergo service to our customers. Maergo delivers expedited transit at a ground price point that not only drives incremental revenue but also incremental profits for our business.”

James Hargett

Director of Operations, Chubbies

Maergo is a first-of-its-kind parcel delivery platform purpose-built for the branded direct-to-consumer ecommerce delivery using modern technology and advanced data capabilities. The result is a national service that is disrupting the incumbent carriers and empowering retail brands to increase sales and customer satisfaction.

To learn more about how to optimize your shipping

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