Charge a fee for VIP benefits

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How does it work? “In some circumstances, charging your customers a one-time or annual fee that allows them to avoid everyday shopping barriers can be very beneficial—both for your brand and for them,” says Lindsay Kolowich in a HubSpot article . According to a 2015 study of 500 mexico mobile database global brands, shopping cart abandonment rates reached 75.6% of transactions across retail, travel, and fashion. The most common cause is “sticker shock,” which is the shock of realizing that shipping and taxes have been added.

Who is it for? This system is most easily applicable to companies that thrive on frequent purchases, but it also has the potential to work for B2B companies that supply products to other companies on a regular basis.

Success story: The e-commerce giant, Amazon, proposed the following: for an annual fee of US$99, Amazon Prime members would have free, fast two-day shipping on any of the millions of products in the catalog , with no minimum purchase amount, as well as access to exclusive movies and TV shows, the ad-free music streaming service , Kindle books and unlimited storage space for photos in the Amazon cloud.

Fun Fact: Analysts estimate that Amazon loses $1 billion to $2 billion per year on this program. However, the company makes up for this loss by increasing the frequency of transactions. According to a 2015 report by Consumer Intelligence Research Partners , Prime members spend an average of $1,500 per year on Amazon.com, compared to $625 per year spent by regular customers.