3. Shipping Rates and Pricing
Before you deliver products, first determine your pricing methods for shipping. The right pricing approach performs an important role to make your business successful.
The free delivery methodology works best if your distribution center and client are situated in one country since international shipping costs are too high.
Offer free shipping brings you some great benefits:
- Customers LOVE it!
- Reduces cart abandonment
- You get extra (loyal) clients and possibly greater sales.
However, understand that free shipping may deeply affect your profit margins.
To diminish this negative impact, you can think about the following choices:
Increase product prices to partially or wholly cover shipping costs. You have to do market research to ensure you do not set your prices too high.
Or, offer to give free delivery with conditions:
- Offer free delivery on a minimum order amount: this covers part of the transport prices
- Provide free shipping on specific products: encourage your clients to buy extra merchandise.
- Offer free delivery for certain places: another approach to increase sales, as an example, in a brand new local marketplace.
- Offer free shipping for a limited time: a powerful campaign to boom income and reduce pick-up cost within a period.
- Give loyal client free delivery: upgrade client commitment and increment their long-lasting value.
- Free in-store pickup: numerous clients love this, significantly more than home conveyance.
Flat Rate Shipping
Flat rate shipping is an eCommerce shipping method that permits you to pay or charge a predetermined fee for a product, including variations like in weight or size. This implies you have to work out the average price of delivery for your all products.
This approach works best if you have a product line of the same sizes and weights. Remember that flat charge delivery can discourage small orders while the charge is high compared to the order value.
Live rates/ real-time rates from a carrier
Another powerful transportation procedure is real-time carrier rates for delivery. Ecommerce platforms like Shopify integrate in real-time with various carriers like USPS and Canada Post to develop shipping alternatives and live pricing from various carriers. This permits your clients to pick and pay for the specific assistance/ exact service.