Should You Charge Extra for Shipping or Include it in the Price of Your Products?

Women signs parcels in post office

 

Running an e-commerce business involves difficult decisions that require an exhaustive analysis of all possible scenarios, this is particularly true for logistics. One of the most common questions is whether to charge extra for shipping or include it in the price of your products. This article is going to help you make the best decision, in order to maximize your chances to attract more people to become your paying customers.

Compare with Your Competitors

The first thing to do is to compare the shipping costs to the purchasing power of the people in your target market, and to the price of the product itself. If the shipping fee appears to be too high, your potential buyers may be tempted to choose one of your competitors who offer free or very cheap shipping. In such situations, it may be wiser to include the shipping costs into the product price, and promote your e-commerce as offering free shipping to all its customers. Nonetheless, you have to be very careful about the downsides of this decision, because they can be extremely daunting to your bottom line.

If, on the contrary, the shipping cost is within the market average, most buyers are going to be absolutely fine with paying it, so there’s no reason for you to include it in the product price. This will save to from having to refund it, should some of your clients return their purchases.

Consider Your Return Rate

If the specific of your e-commerce implies a high returns rate, you shouldn’t include the shipping fees in the price of the most sensitive products, because you’ll lose a lot of money in case of a refund. This is another angle you have to examine your dilemma from. Selling shoes and clothes will inevitably trigger a lot of refund requests, because many people order the wrong sizes, knowing they can return the products and get their money back anyway. Such industries aren’t a great fit for increasing the prices of your products in order to cover the shipping costs.

How High Are Your Shipping Fees?

In case your shipping fees are too high to be displayed as such, you should seek for alternative shipping methods that may help you decrease these costs a little, in order to make them more affordable. You may also want to hide only a fraction of these costs in the product prices. As you can see, this isn’t an impulse decision. You should do your homework properly, and develop profit and loss scenarios for each of the situations mentioned above. Your ultimate goal should be to maximize the profit of your e-commerce, while maintaining a good sales volume. As you may have to conduct some split tests, it’s a good idea to start by doing a market and consumer research, in order to understand the risks involved by each pricing variant. This will save you from applying too many changes to your pricing policy on your live website. Last but not least, if you implement a change and you notice a drop in sales, you shouldn’t be afraid to revert to a previous version of your pricing structure.

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What To Check Before Hiring Transport Equipment

Smiling Delivery Man Or Mover Leaning On Cardboxes In Front Of The Van

If you have to transport items from one location to another, you’ll probably want to rent some equipment. It will be much easier for you to move these items if you have the right kind of transport equipment.

Of course, you need to be careful about what you rent. Here are some things you should check before hiring transport equipment.

Is The Equipment You’re Renting Large Enough To House The Items You’ll Be Transporting?

When you’re loading up your transport equipment, you’ll want to make sure you have more than enough room for everything that you’ll be bringing with you. You should confirm that the equipment you’re hiring is large enough to hold everything that you want to transport.

If you’re not sure how much room you need, you may want to take some measurements. Remember, it’ll be easier to work with transport equipment that is too large than equipment that is too small.

Make Sure The Equipment Is In Good Condition

You should examine the transport equipment you’ll be renting before you take it out. You should confirm that the equipment is in excellent condition. If you spot any issues, you should report them.

If the equipment is damaged, you need to make sure that the rental company is aware of that damage. If you don’t report these issues ahead of time, you could be held liable for them. You should also make sure that the transport equipment will be able to support the items you’ll be carrying.

Could Your Items Be Damaged During The Transport Process?

You’ll want to make sure that all of the items you’re transporting will arrive at your destination in the same condition that they were in when you left. You need to make sure those items aren’t damaged during the transport process.

You may want to lay down a tarp before you start loading up your items. This could keep the items from becoming scratched. If you’re transporting items that are very fragile, you should make sure you fully protect those items.

What Does The Rental Agreement Say?

You should try to rent the right equipment, but you should also rent from the right company. Before you agree to hire equipment from a particular company, you should look over their rental agreement. See what the agreement actually says. If you’re comfortable with the agreement, you can go ahead and sign.

There are a few things you should look for as you read over the contract. You should find out what you are liable for, and you should check to see what will happen if there is an issue with the equipment. Reading over the agreement in advance can help to ensure that things go smoothly.

Transporting furniture, instruments, and other items can be a challenge. However, transporting these kinds of things is a lot easier when you have reliable equipment to use. If you’re planning on hiring equipment, you should be careful about what you rent. Make sure you’re satisfied with the equipment that you choose.

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