Shipping Advice Please - Flat or Varied Rate

Discussion in 'Growing and Managing a Business' started by Luca, Nov 5, 2013.

  1. Luca

    Luca
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    Hi there,

    I wonder if anyone can help me. I sell on the Amazon marketplace and post out various size products that cost various amounts by Royal Mail. My average postage costs vary from £1.00 per Large Letter to £3 per packet.

    I send out roughly 60% packets and 40% Large Letters.

    Do you think I am best to charge customers a flat rate of say £2 per order or vary this depending on whether their order is a packet or large letter?

    By working out an average between the two it allows me to sell larger items for cheaper and compete more on price, but on the downside I'm afraid it might put off customers who are buying the smaller items.

    Many thanks

    Luca
     
  2. Joseph.Shivell

    Joseph.Shivell
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    With the percentage of each being so high, your concern about customers who buy the smaller items is understandable. From you said in your post, however, the cost you state is an average, so why not use the smaller average as a flat rate on large letters, and the larger average as a flat rate on the packets?
     
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  3. Luca

    Luca
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    Thanks for your reply. Yeah that's kinda what I'm doing at the moment, but wanted to get some advise from other business owners on whether there is another, better way. I needed to sound it out really because this is all a bit of a guessing game to me at the moment :).

    Thanks again.

    All the best

    Luca
     
  4. Mark T

    Mark T
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    It would be a better idea if you apply an varied rate.
     
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