WHAT TO WATCH FOR IN FULFILLMENT
Shipping is one of the most difficult aspects for any e-commerce business will have its own unique set of challenges to work through to develop the most efficient shipping strategy, and it takes time to determine what works best. Understanding the variables and evolving your shipping strategy along with your growing business is vital to long-term success. You already put so much effort into ensuring your customers have a great experience, but when it comes to shipping it can feel as if you are handing your brand to a stranger. With thoughtful planning, it doesn’t have to be that way, which is
Will you pass the full cost of shipping on to your customers, or will you offer free or flat rate shipping and absorb some or all of the cost? You should measure and log the weight of each product you sell. Having that information readily available will help you get a good sense of your total costs, and pass along accurate prices to your customers.
SET YOUR RATES
Before you can ship products, you’ll first need to decide your pricing strategy for shipping. There are several methods, but your choices should always be guided bythe underlying financials of your business.
Offering your customers free shipping is one of the best ways to reduce shopping cart abandonment. However, shipping is never free and to make it work for you, there are several options:
• Increase the product prices to cover costs for shipping, so effectively your customers pay
• You pay the full price of shipping out of your margins, so you pay
• Increase prices of products slightly to cover partial costs of shipping, so both you and your customers pay.
Additionally, you can also try offering free shipping on a minimum order amount. This strategy can help offset the costs of shipping by increasing average order size, but you’re still the one paying for it out of your margins.
REAL TIME RATES
Another effective shipping strategy is to charge
The best practice for flat rate shipping is to try and make sure that you don’t drastically undercharge or overcharge your customers. Flat rate shipping works best when you have a standard line of products that have similar sizes and weights. Flat rate shipping tends to become complex and less effective if you sell a wide variety of products, with different sizes, shapes and weights.
CALCULATING SHIPPING COSTS
Couriers all base shipping rates on a variety of factors, these include:
Additional options like insurance
It can sometimes be difficult to compare services exactly as they all offer slightly
different options, and because every business will have their own unique set of variables.
CONSIDER YOUR MARGINS
To be successful in e-commerce, you always need to keep an eye on your profit margins. Because shipping represents a significant expense for e-commerce