Exclude Shipping Cost or not?

Discussion in 'Growing and Managing a Business' started by daytrader, Jan 15, 2013.

  1. daytrader

    daytrader
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    is it a good idea to separate the shipping fee from the cost of the item bought by a customer in an online store or should I just let them pay the sum inclusive of its delivery fee?
     
  2. Ted

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    I think it depends on the product and how much shipping would be.

    Personally, I am a big fan of the "free shipping" concept when it comes to online business. One thing I very much dislike is finding a bargain online only to see that the shipping price is shockingly high. Sometimes it seems like the seller is building a lot of profit margin into their shipping prices. When I see that, it tarnishes their brand in my opinion. I refuse to do business with places like that.
     
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  3. Leejeong

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    You will attract more buyers if you will do "free shipping" offers on them. It will depend on your budget. Think also of giving discounts to replace free shipping or "buy this and take this" item, or free shipping on a $300 purchase. Study the sales and profits on each promo, then if what promo enjoys the buyers, just apply it or implement it right away.
     
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  4. Fergal

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    Similar to Ted, I personally really dislike it when I decide to buy something online and then find out that the shipping cost is really high. I would much prefer to know the shipping cost up front, before I place the order. For me, the actual cost of the product is the selling price plus the shipping cost, it really doesn't matter to me how the cost is split between shipping and product.
     
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  5. daytrader

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    I'll try the free shipping later. Thanks.
    I'm also having problem with the couriers since they don't allow me to just send the items using simple packages with bubblewrap. They want me to put those items on a hardcase so I have buy more boxes with styrofoams. Lately, I tried sending a CD which my customer bought. I wrap it with a softcase, bubblewrap and pack it inside a cartoon envelop but they once again remind me of using a CD hardcase which I don't have. I think this will costs me more. Should I charge more for this?
     
  6. eelizasanchez121

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    I think shipping cost should be excluded.
     
  7. sigma

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    People do shopping a lot online know that the shipping fee is one of the major factor to be considered, sometime the shipping fee is even higher than the product itself. I'm also a free shipping lover when purchase product online
     
  8. ArcSine

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    The theoretical rational buyer ("homo economicus") makes choices solely on the final bottom line, disregarding any smoke and mirrors such as burying an extra charge into the gross price, or boosting the price with a "convenience fee" that doesn't fool anyone.

    But empirical evidence suggests that in buyers' decision-making, rational analysis may be the exception rather than the rule. (I'm with you, Fergal; for me it's all about the final total, but we may be in the minority.) There have been several studies looking at buyers' psychologies, which usually play out along these lines:

    A store puts out a certain item on the shelves, priced at (for example) $25. After a few weeks at this price point, they change the sign to say that the item is $35, but it's presently on sale for $10 off. After the new sign is put up, the item starts flying off the shelves.

    This suggests that an item priced at $25 with "free shipping" would attract more buyers than that identical item priced at $21 plus $4 shipping. (Just be sure the words "free shipping" appear prominently!)
     
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  9. Jon23

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    Free Shipping is the way to go. A great tool I recently discovered was 71lbs.com. They offer a shipment audit for fedEx and UPS shipments. If your package is late based on the guaranteed lead time you are entitled to get back 100% of the shipping cost. They handle the whole process for you and only ask for a percentage of the refund as compensation with no other fees. If you ship at least 5 packages a week it may be worth while.
     
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    #9 Jon23, Jan 15, 2013
    Last edited: Jan 15, 2013

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