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A new customer comes to your website, finds a product they want at a price they like and adds it to their cart. They get hit with the shipping and handling rates and all of a sudden they start second guessing their decision to buy.
Suddenly a product they thought had a fair price is starting to seem a little expensive. Either they decide to press on despite the increased costs, or they abandon their cart and leave your website disappointed. Let's take a look at some shipping strategies and how you can use them in your business.
Offering free shipping - usually just for domestic orders - is a sure-fire way to get your customer's attention, however, depending on your margins, it can also potentially cut into your profits.
That said, the marketing punch that displaying 'Free Shipping' on your website provides can be a significant advantage over any competitors that don't offer the same perk.
You'll need to find out the statistics on your products and the best ways to ship them to be able to make the most strategic decision possible.
In some shopping carts (like Shopify) it's possible to setup real-time shipping quotes - in other words, your customers more or less pay exactly what you would pay to ship your products.
There are always small discrepancies that can happen, of course, but in many cases you can end up breaking even between the shipping charges you collect and what you ultimately have to pay to ship the package.
This strategy doesn't have the same persuasion power free shipping does but it's an easy way to make sure that you're not draining shipping costs out your ears, and that your customers are getting the best deal possible.
This is also a good option to use for heavy or oversized shipments that you simply cannot or do not want to allow to ship out under a free shipping promotion.