How to Lower your eCommerce Customer Acquisition Cost

UK Fulfilment
Jul 3
2 min read

Customer Acquisition Cost is one of the most critical metrics for any eCommerce brand. It’s the price you pay to bring in a new customer, covering everything from ads and promotions to the operational costs of delivering their first order.

As competition grows and digital ad costs rise, many UK businesses are seeing CAC creep up year-on-year. But here’s the good news: your fulfilment strategy can play a surprising role in bringing that number down.

Here’s how.

What Is Customer Acquisition Cost (CAC)?

CAC is calculated by dividing the total marketing and sales spend by the number of new customers acquired in that period:

CAC = Total Marketing Spend ÷ New Customers

To lower CAC, you can either:

Spend less to acquire customers
Or Improve conversion rates and repeat purchases so each pound stretches further.

And that’s where fulfilment comes in.

5 Ways Fulfilment Can Lower Your CAC

1. Faster, Cheaper Delivery Increases Conversions

Slow shipping is one of the top reasons for cart abandonment. Offering next-day delivery or free shipping thresholds can help you win over hesitant shoppers.

Action: Work with a fulfilment partner that provides nationwide next-day delivery at competitive rates.

2. Premium Unboxing = Free Marketing

Great fulfilment doesn’t just deliver a product; it delivers an experience. Eco-friendly, branded packaging and thoughtful presentation encourage customers to share on social media, generating organic reach and free referrals.

Tip: Include a QR code or discount card in the box to drive first-time buyers into repeat purchasers.

3. Reduce Returns with Better Fulfilment Accuracy

Returns eat into margins and inflate CAC because they cost you time, money, and sometimes even customers. Advanced fulfilment systems improve picking accuracy and reduce errors, cutting down on costly returns.

Action: Partner with a provider who offers 99.9% picking accuracy and smart return management solutions.

4. Enable Subscriptions and Repeat Purchases

It’s far cheaper to retain a customer than acquire a new one. Fulfilment services that support subscriptions or easy reordering can increase Customer Lifetime Value (CLV), which directly offsets CAC.

5. Local Warehousing Cuts International CAC

For UK brands selling overseas, fulfilment centres in key markets can dramatically reduce shipping times and costs, improving conversion rates in those regions.

Quick Wins to Reduce CAC Right Now

Audit your fulfilment performance: speed, accuracy, and cost.
Introduce free shipping thresholds to encourage higher basket values.
Optimise packaging for both brand experience and shipping efficiency.
Use post-purchase emails to drive repeat orders.

Fulfilment Is a Growth Lever

Lowering CAC isn’t just about tweaking ad spend or creative campaigns. Your fulfilment strategy can make or break the customer experience, directly impacting conversions and repeat sales.

The smartest brands see fulfilment as more than an operational necessity; they use it as a competitive advantage.

Is your fulfilment helping you grow — or holding you back?

Get in touch with UK Fulfilment for a FREE QUOTE here.