How to manage high shipping costs and still stay competitive as a small business?
Asked 6 years ago
I don’t know how to keep my Shopify store competitive when shipping prices are so high and I need to charge my customers for shipping when other stores offer free shipping.
Tom Amitay
Wednesday, May 15, 2019
You can’t control shipping prices, which are set by size, weight, and volume. No matter if your products are manufactured locally or overseas and if you ship domestically or internationally. Different carriers have different costs. USPS is the cheapest, and then there are UPS, FedEx, DHL, etc. which are more expensive and offer better tracking. You should regularly compare shipping rates between carriers, check flat shipping rates options, and negotiate with your carrier. When you reach a certain volume, you can check prices with fulfillment centers. Also, consider selling on Amazon if your product fits the profile. Amazon FBA take care of all the shipping hassle. Then, there are four options as far as I see it: Free shipping: Offer free shipping and raise prices to cover it. Charge for shipping: Charge your customers for shipping and lower the price of products compared to rates with free shipping. Combination: Combine the two previous options - add a part of the shipping cost to the product price and charge your customers the rest. Free shipping threshold: Charge for shipping but offer free shipping for orders above a certain price. This option will also encourage your customers to make larger purchases. It’s 100% ok to charge shipping costs as long as your customers understand that they need to pay for shipping, and you don’t surprise them when they place their order, with shipping costs that they weren’t expecting.
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