I don't think there is one size fits all approach to this but if anyone could offer up some advice on what has worked for them that would be really helpful.
So, here's the situation. I run an online marketing place with multiple suppliers from all over Australia. Each of my suppliers dropship to my customers. The customer currently pays a flat rate of $10 for postage for their package. However, if the customer buys from multiple suppliers; for example three different suppliers this costs me $30 in postage ($10 per package) and it is eating into my profits. How can I get around this? Here are the options I have come up with:
1. The supplier covers the cost of postage to the customer.
2. I pay the supplier a fee of between $3-5 per package shipped by my supplier to the customer.
I would like to offer Free Shipping within Australia but I just can't quite get my head around how this would work. I can't ask my suppliers to pay for postage so I can offer free postage, that's not ethical or very good account management and I do not want to burn bridges.