If you are managing a company in the eCommerce sector, then chances are you deal with postage a lot. Shipping and postage charges are simply part of the game when it comes to eCommerce, yet it is something that can really scare potential customers off. In fact, the number one reason that online customers abandon their shopping carts before following through with their purchase is the cost of shipping. A lot of customers do it and chances are they are going to be shopping around on your competitors’ sites to see if they can find a better deal on shipping elsewhere. This is why it is important to choose the right postage options and charges so you can make sure you keep as many customers as possible.
All About Shipping
There are some eCommerce sites that believe they have to offer free, next-day shipping. Sure, this is a major incentive to many customers, but it doesn’t necessarily mean it is a budget-friendly option for you. While you may think that it will automatically result in more sales, choosing this option may have some profit implications, so you shouldn’t offer it right off the bat.
In fact, many people will choose free shipping even if it means waiting several days for their package. This is a way to still get more people to follow through with their purchase, but not paying out-of-pocket to make sure that the package gets there the next day. If you offer a free shipping option, you may want to also consider a paid next-day shipping options as well, so you can not only entice the buyers who value free shipping, but the ones who want their items there fast. Just think about Amazon, they have mastered the art of using this tactic and it has helped their business stand out from the combination.
In addition to your shipping fees, you will also need to make decisions about postage charges, especially if you are offering international delivery. This can get complicated, with thousands of different potential combinations of options to choose from. This is why simplification is key.
Just offer a simple, tiered postage solution such as express postage for a higher rate, and slower for a cheaper rate. When shipping internationally, consider breaking down the costs into Europe, Domestic or Worldwide. Then set a fixed price for everything. Your key is to break even on your postage costs. While you won’t be making money, you will get to enjoy a few added perks. Setting your postage fees up in this way requires minimal maintenance, and it makes it easier to communicate with customers. Remember, the simpler, the better.
Have more questions about your postage options and charges? Then contact Autofulfil to learn more about how our services can help.