NA-KD, a Swedish fashion brand established in 2015, is best known in the fashion industry for its affordable yet trendy clothing. Collaborating with brand ambassadors and influencers globally, NA-KD has quickly become one of Europe's top 20 fastest-growing companies. However, such rapid growth often brings its own challenges, particularly in delivery experience.
In the e-commerce world, offering free shipping is a common practice. However, setting up a free shipping threshold can be daunting for many businesses, especially without any data insights. NA-KD was no exception to this challenge. The company wanted to ensure that its free delivery offer was not just a marketing gimmick but a strategy that genuinely contributed to higher conversion rates.
Moreover, NA-KD was keen on experimenting with different carrier services, including more environmentally friendly options. They also wanted to test their placement on the checkout page to gauge customer reactions. However, adding new carrier services and setting the delivery pricing strategy always comes with some uncertainty.
NA-KD partnered with Ingrid, a delivery platform, to overcome these challenges and make more informed decisions. Thanks to Ingrid’s A/B Testing feature, NA-KD could soft launch new delivery methods, experiment with the free shipping threshold, and collect valuable data insights.
The results were nothing short of impressive. The A/B test run for one of NA-KD's markets showed that raising the free shipping threshold could significantly increase shipping revenue without negatively impacting conversion rates. NA-KD saw an 82% increase in shipping revenue, proving that a well-balanced free shipping threshold could boost conversion and shipping revenue.
Olivia Friberg, Last Mile Coordinator at NA-KD, expressed her satisfaction with the A/B Testing feature, “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.”
