Shipping costs are one of the great pillars and problems in terms of logistics operations. And it is that the purchasing decisions of consumers, the organization of the commercial flow of products and advertising incentives are influenced by them.
That is why making a decision on the shipping costs associated with the product (whether you are the buyer or the seller) is a key part of your operation. And in today’s article, we want to talk about the types that exist and leave you some recommendations. All this takes into account the analysis of the expert Juan Macias, CEO of deMartina.com, advisor of the Spanish Association for the Digital Economy and advisor in several start-ups.
Main types of shipping costs
1. Free shipping
There is a great trend that supports this point as an incentive to buy, based on the existing customers in the United States of setting free shipping costs in all stores once a year. A trend is known as “Free Shipping” and stands out in a country with a lot of competition and consumerism. Of course, implementing it permanently is an irreversible step for customers.
The free shipping is already beginning to be considered in determining decision-making in our country and increases conversion rates of e-commerce.
2. By volume of operations
Another possibility is free shipping from a certain cost. A most important decision in logistics. The objectives of this class of commercial policies have two fundamental objectives: that the average order increases and to gain more customers.
3. Variable shipping: Variable:
Costs are not recommended by experts to increase conversion rates. Let’s see: if the expenses increase according to the products that are added, the average cart will go down, the conversion will go down, the customer will start testing and will end up confused.
4. Fixed Shipping:
The option that best accepts consumers, as well know in advance how much they will cost the order, regardless of what they buy, where to send, etc. The problem lies in determining how much our customers are willing to pay for shipping costs.
Tips to save on shipping costs
Following the advice of Juan Macias, we can highlight some recommendations to save on yourshipping costs, both from the customer and business perspective:
Annual flat rate: Follow Amazon’s example and set an annual fee that the customer can pay to get “free shipping” for 12 months, carefully studying how much it should be to benefit you.
Size does matter: Keep packages as small as possible. If your product is small, put it in a box according to its size, and avoid paying to send empty space.
Be careful about offering free shipping: as it could make customers take orders more lightly, placing multiple orders instead of just one
Express delivery options: p Agando a little extra you can get faster shipping. This will be ideal for consumers who are impatient or need the product quickly.
Specify a shipping time appropriately: a time that allows you to know for sure that the package will reach the customer. Leave time for not having to rectify if any last-minute problem arises.
Bet on simple and reusable packaging.
Have a second carrier: just in case the first does not do its job correctly or has a problem.