Shipping

Serena_Philips
New Member
4 0 0

Hi all

I am just wondering about shipping costs. I know people would rather have free shipping and I do have that option if you spend a certain amount (mine is a low threshold but it will be changing). I have heard so many people complain about shipping costs lately and I get that it can be expensive, but I also don't want to lose customers. I have never liked the 'pay x amount for the first item and x amount for each additional', so that is not offered. Would you people rather pay a set amount for shipping or pay by the item weight? A set amount could work for the customer, but so could paying by the weight, depending on what they get. There has been times I (as a business) have had to pay $15 for an order; other times it is $4 or $5. I know nothing will be perfect but I am just curious about people's opinions. I sell small items (adult items) and any large/heavy items (very few), shipping will be built into the price anyway as it will be over my free shipping threshold and would cost more anyway. I get that it will take a while to turn a profit, but I also don't want to have to keep digging into my pockets to get the product out-otherwise there would be no point in being in business.

Thanks to all in advance!

Replies 2 (2)
Lana
Shopify Staff
312 37 40

Hello @Serena_Philips!

This is Lana from Shopify. I see you have some questions about shipping so I wanted to help you out here. 

While it is true that free shipping is a very attractive option and can often times lead to more conversions, you also need to keep in mind that the shipping options are there for you to be able to cover the costs necessary to get the product to the customer. As you said it yourself, you do not want to keep going into your own funds to cover shipping, - and you're absolutely right. 
Free shipping is definitely something you could look at offering, but you could set it up in such a way that customers need to have spent a minimum amount first in order to qualify for it - for example, you should try all orders over $50 get free shipping. 

I personally don't think that a flat rate would suit you since first of all you mentioned yourself that different types of orders will vary in cost for you, and also you would like to have the free shipping available as many customers would look for that. 
Below, I have created an example of some shipping rates just so you can get an idea of what you could achieve with the shipping settings:

17-43-77438-5583 

As you can see in my example, I did it by product price, but you can also do it with the weight as you mentioned yourself - maybe have the heavier items cost more and the lighter items cost less, depending on what you need to cover. 

While it is important to keep in mind what the customers would prefer, you have to put the needs of the business first. To learn more about this, you can take a look at our Shopify Blog article that has a Guide to Shipping. It looks into strategy and calculating shipping costs, which would be very beneficial for you at this time!

If you think of anything else, please do feel free to ask me. 

Thanks! -Lana

Lana | Social Care @ Shopify 
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Daniel_1990
Tourist
9 0 1

When you choose to manage shipping at your own, you`ll definitely face these challenges:

High Shipping Rates

When you choose self-fulfilments, you have to rely on delivery partners for offering cost-efficient shipping services. It is unlikely to get discounts and negotiated shipping rates when you have low order volumes and this makes fast delivery expensive. Shipping rates greatly influence order incidence rates and high shipping fees significantly affect average expenditures.

Lack of Free Shipping

Almost 75% of online shoppers demand free shipping when they make an online purchase. Big eCommerce retailers like Amazon and Walmart have made it the norm. Free shipping is considerably the best marketing tactic to increase sales. Retail giants, of course, can afford to take the hit for free shipping, but for startups and small and medium-sized eCommerce businesses, offering free shipping means compromising with the profit margin. It might not be practical or make any sense that the costs incurred from shipping will be far outweighed by the large profit margin on your products.

Late Shipment delivery

From any online store, modern consumers expect their package to arrive on their doorstep quickly. In case, you have a disorganized and complicated eCommerce fulfillment process then your fulfillment timelines won’t be in line with the hopes of your customer - which means next time, they’ll simply choose your competitor that can provide them what they’re looking for quicker.

How To Solve Your Shipping Challenges?

Without wasting your time, I will be taking you directly to the software that actually worked for me - FenixCommerce. This AI-powered solution helped me to:

  • Selectively incentivize purchase using intelligent order promotions.
  • Suggest personalized shipping options based on customer location, inventory levels and location, product parameters, and carrier contracts.
  • Offers the most cost-effective services and ensures delivery within the agreed timeframes.
  • Promote product-margin-based and cart-margin-based shipping options.
  • Send customers real-time updates about package location and delivery issues.
  • Audit your shipments and individually address the reasons for delayed deliveries that are most prevalent.