Shipping Cost Strategies
Leveraging shipping costs can be a way to generate more sales and set clearer expectations for your customers. With Jimdo, you can employ any of the following shipping cost strategies:
- Free Shipping
- Flat-rate Shipping
- Combined Shipping Cost Strategies
Many online stores don’t pass shipping costs on to their customers as an incentive to purchase. Your customers may be more likely to make a purchase if they know they don’t have to pay for shipping. There’s less risk for them, therefore more reason to buy.
Of course, if you decide to offer free shipping, the costs to ship your goods will be absorbed by your margins. Before going with this option, you’ll want to consider the following:
- How often are customers buying? Will free shipping lead to repeat purchases?
- What is the average transaction value? Are you making enough on each purchase to eat the cost of shipping?
- What is the return rate? Are you losing money on too many returns?
Charging a flat-rate for orders of any size is an option for stores with a lot of items of similar weights and sizes. All of your orders, regardless of the number of kind of items selected, will have the same shipping cost.
Flat-rate shipping is a common shipping strategy that is easy for customers to understand and easy to advertise. If your margins are not high enough to offer free shipping, having a flat-rate shipping cost for all orders is the second best option.
To set a flat-rate shipping cost, follow these steps:
- Click Settings > Store > Shipping Costs.
- Set the flat-rate shipping cost by setting a value next to Shipping Costs.
- Click Save.
Keep your flat-rate shipping cost as low as possible so as not to discourage potential customers from making purchases.
Combining Shipping Cost Strategies
Shipping cost strategies can be combined in a number of different ways to allow for even greater flexibility. You can use a combination of weight-based and tag-based shipping, or offer free shipping for large orders.
Keep in mind that any additional complexity will often provide your customers with uncertainty about how much they will pay for shipping. At checkout, you may lose customers who see shipping charges that they didn't expect.
Having a solid understanding of your customers’ typical behavior and your own costs and margins will help you to determine the best strategy for your store. Don’t be afraid to test certain strategies and make adjustments based on results and feedback. Getting your shipping costs right is a process and will ultimately take time and lots of trial and error.