How should I charge for shipping?There is no doubting the fact that shipping costs are an important factor in any consumer’s purchase decision making process. Therefore you should think carefully about how, and how much to charge for shipping.
Below are some of the most popular ways to charge for shipping
Add the cost of shipping into your selling price - this is becoming a popular option, embraced by some of Australia’s largest online retailers. Consumers love free shipping.
Free Over “x” Amount
Charge a flat rate or tiered price for shipping up to a certain order value after which shipping is free. This method can increase average order value and drive up sales.
Cubic / Weight Based Shipping
Shipping costs are calculated on the cubic or weight of the order and the destination post code. The larger the order, the more expensive the shipping will be using this method. This is typically how freight carriers charge for shipping and is therefore the most accurate way for you to charge for shipping. There is less risk involved in this method.
Flat Rate Shipping
Charge a flat rate based on the order value.
Per Item Shipping
Charge a different flat rate per product. This allows you to set different rates for different items.
How Do Shipping Carriers Charge For Shipping?Shipping costs are typically determined by 3 things:
- The size of the shipment
- The destination address
- The service used (e.g.: express or standard)