Quoting Ideal shipping prices forms a huge part of the core activities of running online stores in view of high estore conversions consistently. How do you set the right price where you get your profits and your estore customer is happy too? It’s very important you know what it exactly costs you, before you think of a strategy to do the perfect pricing. The price for shipping any parcel considers four main details into account,
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Package dimensions and weight
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Geography of source and destination
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Tracking costs
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Insurance costs
There’s a study that says more than 50% of the customers repeat purchases if they receive items in premium packaging but this doesn’t mean you’re going to spend more on shipments alone and lose out overall. You should figure out what your competitors are doing and act accordingly; are they offering basics? Why don’t you do a bit higher level of packaging so your costumer is convinced to pay even a price higher?
The major problem in eCommerce store shipping pricing strategy comes with returns. When a customer chooses to return the item bought, you are forced to reimburse the product prices and the shipping prices received during order placement. It’s your cognition to be transparent in your return policies in order to form a profitable shipping strategy.
Well, it’s time we got some ideas on quoting ideal shipping prices, for high estore conversions along with winning the customer hand,
- Offer free shipping above certain order values so that your margins are high enough to compensate the loss here. Keeping a too high eligibility order value may disappoint your customers and keeping a too low eligibility would make you lose out. Go for A/B tests in various thresholds before you decide what works the best for your eCommerce platform.
- A research states that close to one fourth of the online stores go for standard shipping costs irrespective of the customer order value. While this may seem to you that the estore conversions may drop due to no free shipping offered, it’s not the case always. It just depends on what’s the shipping fee quote you make. You can make different quotes and do the A/B testing to find out which figure works well for you.
- If you are an established businessman getting consistently appreciable discounts from shipment carriers, then it’s good that you go for free shipping to customers irrespective of the order values. May be you can choose specific customers based on their relationship with you, to determine who can qualify for zero shipping prices. Do you know the idea works specially well during festival seasons where people choose you over brick mortar stores and high number of orders helps you compensate for free shipping offers!
- If you’re confident on your competitor prices, then you may very well go ahead including shipping prices within the product prices and show free shipping to buyers. Keeping track of competitor prices and estore conversions upon applying this strategy is extremely necessary so you know if it really benefits you.
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Free shipping offer should be used as a marketing tool in your ppc ads, landing pages and home page if you wish to make the best out of the crucial offer. While you take a risk offering something for free, you can’t afford to communicate it to all intended, by all means!
- Returns, packaging costs and costs on marketing are to be accounted when you fix the shipping price. It’s up to you where you insert them, be it into your shipping or into product prices, as long as you do it smart enough not to lose out on profits and on customers.
- Giving zero shipping prices on restricted items where the actual shipping costs are low works.
Know your products, study and state ideal product prices, know your shipment costs along with marketing and packaging costs, build smart return policies, know your competitor pricing and taking all into account, create your shipping prices. A great strategy in every aspect is what it takes to make high estore conversions. You need an assistance in pricing or other eCommerce areas, ask us now.
