The checkout tweak that lifts conversion

How bundling and tiered shipping change the game for small retailers

The checkout tweak that lifts conversion
(Image courtesy Jean Francois)

Getting an order is only half the battle. Fulfilling it profitably is where most small retailers are quietly losing ground. Jean Francois, head of partnerships at MasonHub, works with brands every day on the gap between what they're shipping and what they're actually making. Here, he breaks down what's changed in fulfillment and the moves small retailers can make right now to protect their margins.

—Interview by Marcy Medina, edited by Bianca Prieto


How has the ecommerce and fulfillment scene changed in the last couple of years? What about tariff uncertainty on top of that? 

The transition from [the early 2010s] through COVID created the conditions we have today: thousands of 3PLs, built during a period of stimulus-fueled consumer spending and outsized demand. Fast forward to 2026 and the picture is very different. Tariff pressures, global conflict, stagflation concerns and a more cautious American consumer have compressed demand. The challenge for both brands and fulfillment companies is transitioning from a growth mindset to a margin expansion mindset, and that's hard for [smaller] operators. Previously, you could succeed by doing everything yourself or hiring generalist teams. That's no longer the case.

What are the most important things a small brand or retailer should know about fulfillment?

The game has fundamentally changed. Customer acquisition cost (CAC), customer lifetime value (CLTV), and delivery experience are now directly linked. Most brands right now are in some level of crisis because CAC is rising (Facebook and Google ad costs are up), and procurement costs have increased due to tariffs and oil prices.

So the new game is: How do you maximize profit per order, and how do you increase the number of times a customer comes back? Loss-leader acquisition strategies are no longer the primary play. What wins today is delivering excellent value upfront, transparency at checkout, reliable delivery and exceptional customer service. Easier said than done. 

I'd also add: Even though DTC has been around for over a decade, most operators in this space are relatively new to it, and logistics is inherently a community with a lot of tribal knowledge. That creates real barriers to entry. The cost of getting fulfillment wrong today is significantly higher than it was 10 years ago. We're seeing consolidation on both the brand side and the fulfillment side, and that trend isn't slowing down.

What are some things brands can do in the next seven days?

The next seven days are an opportunity to audit what's actually moving and where your profit leverage is. The most accessible quick win: take your fastest-moving SKUs and build two or three bundles around them. These don't need to be complicated or expensive to execute. The goal is to at least double your average order value (AOV) on those orders and make the value proposition so obvious that choosing you over Amazon or a competitor becomes a no-brainer. Bundling is one of the few levers that simultaneously improves your unit economics and your customer's perceived value, and you can test it in days, not months. 

What about in the next seven weeks? 

The seven-week window is ideal for a shipping experience experiment, specifically at checkout. Instead of a single free shipping threshold, build out tiered shipping options like Amazon does: a standard free threshold, a two-day option at a modest price point and a third express tier at a premium. What you'll find is that customers will actually pay you to get their order faster. That's the margin you're leaving on the table today.

Pro tip from someone who has spent their career at the intersection of customer experience platforms and supply chain: if you add estimated delivery dates at checkout and do it right, you can increase conversion by at least 5%. Customers don't just want fast, they want to know when. Certainty drives commitment. If you can deliver on that promise, you won't just win the sale, you'll win the repeat.

The SKUpe's Take

Bundling is one of the easiest margin levers a small retailer can pull right now. Take your fastest-moving SKUs and build two or three simple bundles around them. The goal is to lift average order value while making the choice feel like a no-brainer for the customer. Low cost to test, fast to implement and one of the few moves that improves both your unit economics and the customer experience at the same time.

Thanks for reading this week's edition!

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The SKUpe is curated and written by Marcy Medina and edited by Bianca Prieto.