The Cost Of Shipping

Yesterday, I suggested
increasing the cost
of your products
to cover shipping
and
then offering
free shipping.

How do you do that
when you ship
all over the country
and/or world?

First, you offer
a different cost for your products
based on country.

International buyers
often already expect that.

Then you review
where your sales originate
in that country.

Are most of your sales
in the USA
coming from
the mainland
for example?

Then you offer
free shipping
to mainland USA
and charge for shipping
to other places.

You calculate
that cost of shipping
by taking your current shipping costs
divided by the number
of delivered products.

Increase that cost per delivered product,
give yourself space for error
and a little bit of profit.

Then monitor
that cost per delivered product
closely.

You’ll lose profits
on shipping costs
on some sales.

But you should more than compensate
for those losses
with gains on other sales.

Ensure you know
your shipping costs
before you offer free shipping.

Include Shipping Costs In Pricing

I will pay more
for a product
if there’s free shipping.

Often I’ll pay more
than what the shipping costs
would be.

It makes no sense.
I admit it.

But that’s how I think
and
that’s how many other people think.

What does this mean
for you, as a business owner?

Consider increasing
the price of your product
to cover the cost
of shipping
(to mainland USA
or major cities
or…everywhere in a certain country)
and
then promote free shipping.