Experiment specification

Experiment spec: delivery-fee visibility in basket

Owner: Checkout PM Build: Ravi · Analysis: Ines · Approval: Chloe

Objective and hypothesis

Test whether showing delivery costs before checkout increases orders by reducing surprises—or decreases orders by discouraging customers earlier.

Last quarter, 12% of support contacts concerned unexpected delivery fees. This motivates the test but is not the percentage of customers affected.

Experience

Control: Current basket; delivery fee first appears at the final checkout step.

Variant: Show a clearly labelled delivery-fee line and fee-inclusive total in the basket. Update both when the basket changes. Use the production pricing logic: £3.99 delivery, free for orders over £60. Ravi must verify boundary behaviour at exactly £60 and match existing checkout pricing.

Keep the final checkout fee display unchanged. Everything else stays identical.

Do not add the free-delivery banner. It could independently encourage larger baskets, making it impossible to attribute results to earlier fee visibility. Test it separately.

Eligibility and assignment

Include customers viewing an orderable basket in supported markets. Apply existing employee, test-account and bot exclusions identically, before assignment.

Randomise 50/50 by customer, not session, at their first eligible basket view. Persist assignment across visits and devices where identity is available. Use a stable anonymous identifier for guests and a documented account-linking rule; Ravi and Ines must validate identity handling before launch.

Each customer enters the experiment once. Analyse everyone assigned, regardless of whether they start checkout or successfully see the treatment.

Metrics

Primary: Seven-day order conversion: customers placing at least one order within seven days of assignment ÷ all assigned eligible basket viewers.

This captures Chloe’s concern about discouraging checkout entry. Orders ÷ checkout starts is unsuitable as primary: the treatment can change who starts checkout.

Secondary/diagnostic: - Checkout-start rate per assigned customer. - Checkout completion among starters, interpreted cautiously because starter populations may differ. - Revenue per assigned customer, including non-buyers. - AOV and proportion of orders qualifying for free delivery. - Unexpected-fee support contacts per assigned customer within seven days, using consistent contact classification.

Operational guardrails: Basket/checkout errors, incorrect fee calculations and page performance. These can trigger a safety rollback, not an early declaration of success.

Sample size and duration

Interpret Chloe’s minimum worthwhile change as 0.5 percentage points absolute: 8.0% to 8.5%, not a 0.5% relative lift.

With a matching 8% baseline, two-sided 5% significance and 80% power, plan for approximately 95,000 unique customers total, evenly split. Ines must verify the historical baseline uses the same seven-day definition and finalise the calculation before launch.

Do not count 40,000 weekly viewers as entirely new experiment entrants. Estimated cumulative reach is 40,000 in week one, then roughly 20,000 additional customers weekly: about four weeks to enrol the target, plus seven days for outcomes to mature.

Lock the enrolment target before launch; stop enrolment when reached, then wait seven days. Extend only if unique-customer accrual is slower—not based on results.

Analysis and decision

Ines reports the intention-to-treat conversion difference, 95% confidence interval and absolute rates. Check allocation imbalance, logging, identity consistency and treatment exposure before interpreting results.

No daily significance-based stopping. Daily dashboards are for operational safety only.

Recommend rollout if the primary improvement is statistically significant, the point estimate is at least +0.5 percentage points, and there are no unresolved operational or economic concerns.

Otherwise, retain control pending review. Distinguish evidence of harm, evidence ruling out a worthwhile gain, and an inconclusive result; “not significant” does not mean “no effect.”

Launch approval

Ravi signs off implementation and QA; Ines signs off measurement and the locked analysis plan; Chloe approves the isolated treatment, decision rule and any economic guardrail thresholds before launch.

Basket delivery-fee experiment

For: Ravi (build), Ines (analysis), Chloe (approval) Decision requested: Approve a test of showing the existing delivery fee in the basket.

Hypothesis and scope

Showing the delivery cost before checkout will reduce surprise and fee-related support contacts, without materially reducing orders.

• Control: Current experience; delivery fee first appears on the final checkout step.
• Variant: Show the applicable fee in the basket: “Delivery £3.99” below the free-delivery threshold, or “Free delivery” when the basket qualifies. Keep the existing “free on orders over £60” rule and wording.
• Change nothing else. Do not add the free-delivery banner: that would test a second intervention and make the result hard to interpret.

Build and assignment — Ravi

Randomise 50/50 by customer, not session, and keep each customer in the same arm across visits and devices where identity is available. Stratify assignment by new versus returning basket viewers. Exclude staff and test accounts. Log assignment, basket value/fee shown, basket views, checkout starts, orders, order value, and relevant support contacts.

Measurement — Ines

Primary metric: Basket-viewer conversion: percentage of assigned customers who place at least one order within 7 days of their first eligible basket view. Count each customer once, in their assigned arm (intention-to-treat). This captures any deterrence before checkout; checkout completion alone would miss it.

Guardrails / secondary measures: Checkout starts per basket viewer; checkout completion (orders ÷ checkout starts); average order value and revenue per assigned customer; delivery-fee-related support contacts per assigned customer. Support contacts may be too sparse for a definitive test, so treat them as directional, not a substitute for the primary outcome.

Sample, duration, and analysis

Baseline basket-viewer conversion is 8%. Power the test to detect a 0.5 percentage-point absolute difference (Chloe’s smallest worthwhile order effect), with 80% power and a two-sided 5% significance level. This requires approximately 95,000 unique customers total (about 47,500 per arm), assuming independent customer-level outcomes.

There are about 40,000 basket viewers weekly, but many return across weeks. Run for at least four full weeks and until the sample target is reached; then allow 7 days for outcomes to mature before reading results. If the target is not reached, extend in full weeks. Ines should confirm the final sample-size calculation and report actual enrolment.

Do not stop early for significance or check daily results to make a stopping decision. Monitor only for implementation or customer-harm issues. Analyse the primary metric at the customer level, with a 95% confidence interval and the pre-specified two-sided test.

Decision

Recommend rollout if the variant improves basket-viewer conversion by at least 0.5 percentage points, the result is statistically significant, and guardrails show no material harm. Do not roll out if there is significant harm. If results are inconclusive, report that clearly; do not interpret “not significant” as proof of no effect.

Experiment Spec: Delivery Fee Transparency in Basket

To: Chloe (Approval), Ravi (Build), Ines (Analysis) From: Checkout PM

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1. Objective & Hypothesis

• Context: 12% of support contacts complain about surprise delivery fees at final checkout.
• Hypothesis: Displaying the delivery fee (£3.99, or "Free" if >£60) upfront in the basket will set accurate expectations, reduce support contacts, and build customer trust without reducing net orders.
• Risk (Chloe’s concern): Upfront cost shock could cause drop-off before checkout begins.

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2. Corrections to the Draft Plan

1. Primary Metric Changed: Draft used Checkout Completion Rate (Orders ÷ Starts). Correction: Use Basket-to-Order Conversion Rate (Orders ÷ Basket Viewers). Measuring only checkout starts introduces severe selection bias—if fee visibility deters low-intent users at the basket, checkout completion would artificially increase while overall orders plummet. 2. Unit of Randomization Changed: Draft used session-level. Correction: Randomize by User ID (falling back to persistent anonymous visitor ID). 50% of weekly viewers are repeat shoppers; session-level randomization would expose returning users to conflicting experiences. 3. No Peeking / Fixed Duration: Draft suggested stopping once "significant." Correction: Continuous monitoring with early stopping inflates false-positive rates to >30%. We will fix sample size upfront and run for complete weekly cycles. 4. Scope Control (Chloe’s Banner): Cut the promotional free-delivery banner from this test. Adding a promotional banner introduces a confounding variable, making it impossible to isolate whether fee transparency helped or hurt. We will test the banner in a follow-up experiment.

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3. Variants (For Ravi)

• Allocation: 50/50 split at User/Persistent Device ID level. Triggered on basket view.
• Control (A): Current basket. No delivery fee shown (fee appears on final checkout step as today).
• Variant (B): Add a delivery fee line item to the Basket Order Summary:
• Basket < £60: `Delivery: £3.99`
• Basket ≥ £60: `Delivery: FREE`
• Include delivery fee in the displayed Basket Total.
• Note: Do not add promotional progress bars or marketing banners.

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4. Metrics Framework (For Ines)

• Primary Metric: Basket-to-Order Conversion Rate (Total Unique Ordering Users ÷ Total Unique Basket Viewers).
• Guardrail Metrics:
• Average Order Value (AOV baseline: £47).
• Basket-to-Checkout Start Rate (tracks where abandonment occurs).
• Total Net Revenue (Orders × AOV).
• Secondary / Diagnostic Metrics:
• Delivery-fee-related customer support ticket rate per 1,000 orders.
• Checkout Completion Rate (Checkout Starts → Orders).

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5. Sample Size & Run Time (For Ines & Chloe)

• Baseline Conversion: 8.0% of basket viewers place an order.
• Minimum Detectable Effect (MDE): Absolute ±0.5 percentage points (7.5% or 8.5%, a 6.25% relative change), per Chloe's threshold.
• Statistical Parameters: $\alpha = 0.05$ (two-tailed), Power ($1 - \beta$) = 80%.
• Required Sample: ~47,000 unique users per variant (~94,000 total unique basket viewers).
• Duration: 3 full weeks (21 days).
• With 40,000 viewers/week (~20k new, ~20k repeat), 3 weeks yields ~80,000–90,000 unique basket viewers across three full grocery-shopping cycles.
• Ines will run the read-out strictly after the 21-day window closes.

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6. Decision & Rollout Criteria (For Chloe)

• Ship Variant: Primary conversion does not drop by more than Chloe’s threshold of -0.5pp (non-inferiority) AND delivery-related support contacts decrease significantly.
• Iterate / Re-test: Basket-to-order conversion drops by >0.5pp. In this scenario, early fee disclosure hurts conversion, justifying Chloe’s concern; we then test the £60 threshold banner/progress bar to offset drop-off.
• Kill Immediately: Overall revenue drops >5% statistically significantly at the end of Week 1 (safety check only; not an early win stop).