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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4 Motivational Messages to Follow in Business

Pursuing a career in business is not an easy path to follow. It takes blood, sweat, tears, hard work and dedication to reach success. However, with that success also come with the high chances of failure. With those failures also comes experience that will lead to turning the poor decisions into the best habits. If you find yourself in need of motivation, look no further as we’ve listed down the best motivation messages for you.

Here are 4 motivational messages to follow in business.

“Don’t Stop Believing In Yourself”

No amount of success will ever be reached without believing in yourself. There is nothing that was ever created or accomplished is someone did not believe in it. If you believe in yourself and your business, then nobody should be able to stop you. Waiting for someone else to achieve what you imagined will only set yourself up for failure. Everything starts with believing that you deserve it.

“Believe in Your Purpose”

Focus on your purpose and find out it motivates you. Your purpose can be found in many ways. It is important to understand your purpose in business and in life. How do you want to reach your goals, and why? While you may have the passion now, that passion may leave over time. It is the purpose that will keep you motivated.

“Learn What It Takes To Achieve Your Dream”

While most people believe that dreams are only dreams, it is what makes you stay motivated in achieving your goals. You will need to do your research and find out what it will take for you to achieve your dream. Once you know what it will take, you can set your path to refine your skills and requirements and plan how you will proceed.

“Make Informed Decisions Through Proper Research”

One important part of stay motivated is to also stay informed. This can be done through research to help you achieve what it takes to reach success.

What do you do to stay motivated in business? Comment below and share your thoughts with us!

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How to Social Media Mishaps Will Put Your Business At Risk

With the events of racism happening all over the world today, many people are taking sides and turning to the issues of racial profiling and the presidency. While everyone is entitled to their opinion, it is important to mention that such opinions may cause trouble and may even be dangerous.

For many businesses, the use of social media is meant to promote their business ideas and support as a means of marketing advertisement. If you are an expert in social media, you should already know that what you say on the web does just as much harm as it would in public.
Here’s how social media mishaps will put your business at risk.

Making Poor Choices in Trends

Social media is all about showing the latest trends in the world today. Businesses take advantage of this as a way to raise awareness their site and make it relevant to their promotions. However, posting something that is controversial may lead to the loss of followers and most likely, your clients.

Spam on Your Subscribers’ Accounts

The main purpose of social media is to build a strong following with readers and to engage them with your business. However, this does not mean that you must spam their accounts. It is acceptable to make posts around three to five times a week as this will keep your followers in tune of what you have to offer and how you can promote your business.

Sounding Too Promotional

While mentioning the next upcoming events and sales on a new product is important to your business that should not be the only thing you post on your social media account. Consider the traditional “80/20” rule of making your articles engaging during 80% of the time while using 20% to post promotions and marketing.

What social media mishaps have you experienced before? What was the outcome of these experiences? Comment below share your stories with us!

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5 Common Reasons Why Even the Best Entrepreneurs Fail

Being an entrepreneur gives you the opportunity to countless possibilities in business. At the same time, entrepreneurship comes with its share of failures and shortcomings. It is not something you can fake until you make it as it takes both knowledge and experience to reach success.

Here are five common reasons why even the best entrepreneurs fail.

Driven by Money Over Value

One of the most common reasons why entrepreneurs fail is the prime motivation to get rich first and add value later. If your goal is to make money first, then you will only start yourself on the wrong path. The root of a successful business is to create valued products and services that will help clients.

Low Knowledge of Business

The path to failure is often due to the quest for money rather than the use of business knowledge. The key to success is to continue learning about your business and the world around it. The ability to stay on top of the business industry will enable you to grow your brand.

Lack of Focus

While everyone tries to be the jack of all trades, focusing on more than one thing will not help you to achieve mastering any at all. The success of an entrepreneur will be determined by how well you maximize your strengths.

Fear of Taking the Risk

Building up the fear of failure is one reason why entrepreneurs fail. Entrepreneurship is about releasing your passion and creativity to do something you care most about. What makes is what you are willing to do to make your goals become reality.

Shortness of Vision

One cause of failure is due to the lack of vision. If you do not consider that fate of tomorrow, you will not be able to see beyond the future of your business. Are you simply planning to go into business for a short period? Or are you planning to build a long-standing brand that will last longer than you can hope to imagine?

What are your experiences in failing as an entrepreneur? What have you done to move on and avoid the same mistakes? Comment below and share your thoughts with us!

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