Did you know that the number 1 reason for cart abandonment is that shipping costs turn out to be too high?
That is why on top of creating a good product and setting a good price, you’ll need to come up with the RIGHT shipping strategy that makes sense for your business's bottom line.
Some shipping strategies to be considered:
This would be your customers favourite choice although shipping is never really free. Someone always has to pay.
How it works:
- The cost paid by customer: Increase product prices to cover costs for shipping.
- The cost paid by seller: You pay the full price of shipping out of your margins.
- The cost paid by customer and seller: Increase prices of products slightly to cover partial costs of shipping.
If you are absorbing the costs of shipping, you could offer free shipping on a minimum order amount to help to increase your average order size.
This helps the clients choose shipping rates that reflect if they need the product urgently or if they are able to wait a little longer.
If your products are a line of items that have similar sizes and weights, then offering a flat rate may be the solution for you.
If not, you risk overcharging or undercharging your customers too much which will not be good for your business.
How do you decide which strategy to use?
Know your shipping costs.
Parcel Daily helps you to compare rates across different logistic companies to help you easily determine the best shipping rates available to you.
Further, becoming a member with Parcel Daily helps you unlock cheaper, fixed rates that will allow you to effectively plan your costs and choose a shipping strategy that allows your business to grow.
On top of that, Parcel Daily offers free parcel pickups, making sure that there are no additional costs incurred in terms of time or money to get your products to the post office or fulfilment centres.