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Tuesday 13th July 2010Choosing Shipping that is Right for Your Store

Shipping can be a complex task in itself. Packaging up the goods and making sure they get from A to B in good condition and on time, at a fair price is a challenge that all business who ship for themselves will face.
 
There are a number of strategies that you can implement when it comes to charging your customers for shipping. The effectiveness or your strategy will really depend upon what sort of items you are shipping, who your customer base is and what sort of margins you are able to make on the products that you sell. 
 
Here we will go through a few really basic approaches that might work for you:
 
1) Free Shipping
Depending on your product, you might already be making great margins on the sale price alone, so you may be able to offer free shipping in the hopes that offering your customers a deal will encourage sales. If you don't have particular large margins on the sale of the products alone, you might want to consider increasing the prices slightly and then offering free shipping, again in the hopes that your customers will see free shipping as a bonus, even if they have to pay a little more for the item in the first place.
 
2) Flat Rate Shipping
Working on the principle of a flat rate of shipping, no matter what it is that is shipped, lets your customers know that you are willing to be reasonable when implementing pricing. This can increase confidence in people buying on your site, both in the fact that your shipping policy seems very fair, but also in the fact that they might feel that they are getting a deal if they purchase more items. 
 
3) Variable Pricing Based on Price / Weight / No. of Items
This is a favourite amongst many online retailers, and you should be able to easily set up a variable shipping policy very easily with your ecommerce store platform. This works on the basis that shipping will start of fairly cheap for low cost and low weight items, or if there are only one or two items in the basket. As the price, weight or number of items increases, so does the shipping price. The best way to do this is to have a base rate, and then set an additional incremental price structure that lets you cover your costs, but doesn't weight to heavily on your customers wallet or purse. 
 
Based on your products, margins and customer base, you may already know which of the above methods would be best to suit your online business. If not, don't be afraid to test and evaluate different strategies. Making a success of an online business can be a case of trial and error until you get everything just right. Treat the experience as a learning process so that, like any business, you can aim to grow and develop, making good choices along the way.

Posted on July 13th 2010 on 03:10pm
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