Imagine this. You’re hunting for a new pair of runners. After 15 minutes, you’ve finally found a great deal online. They’re $199 for the pair, but today they’re only 90 bucks. Wow, great find. The site even has free shipping if you spend over a certain amount.
You can already see them landing in time for Wednesday’s practice. It’s most excellent timing. You work through the checkout process and the site shows you a few other products. But you’re not going to be distracted, your eyes are on the prize.
But wait. You only get free shipping if you spend over $100.
What do you do? Do you spend the $9.90 on shipping anyway and get the job done. Or do you quickly pick up some 14.95 sports socks to push you over the $100 mark? You do need some more socks, your old ones are pretty worn…
It may seem like an obvious example, and we may even insist that rationally we wouldn’t choose the second option, but the science is clear. More often than not, we do. As consumers, we’re far more concerned about not losing the free shipping than we are worried about a few extra bucks for a pair of socks.
And this is the power of loss aversion.
Next week, we’re going to release our whitepaper, 5 Behavioural Hacks to Increase your eStore Sales.
Check it out if you want to see how understanding a few of our human irrationalities can help lift your online sales.