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Common scenarios for shipping in an ecommerce business

Oct 10, 2010

Many of our clients have different processes on how they will charge for shipping. We have narrowed it down to 4 primary scenarios how shipping is calculated.

  1. Flat Rate
  2. Free Shipping with minimum revenue purchase
  3. Based on Weight
  4. Based on Revenue

If you are selling primarily to a consumer (B2C) or small orders for (B2B), having the right shipping scenario is important to further sales. If shipping is perceived to be too expensive, sales will certainly fall.  Our recommendations are to keep it simple and easy to understand for the buyer.  Incentivize buyers to buy more – offer free shipping based on a minimum revenue amount or flat rate shipping.

If your profit margins are thin, based on weight or revenue may be your best bet.  This way you are charging as close to actual costs.  Most website shopping carts allow you to plug in a shipping table based on weight or revenue.  The more advanced website shopping carts will even allow you to import published shipping costs for common carriers, such as Fedex, UPS or USPS.  In some cases, shipping can also be a revenue stream too.

If you would like a free shipping analysis, feel free to contact us and we can help you find the best shipping scenario for your business whether your shipments are domestic only or international.

Contact: Eric Brown, eric@fulfilltopia.com or 757-449-5013

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“We’ve had a great experience with Fulfilltopia. They’ve been flexible to fit our needs and hhelped us establish a previously non-existent supply chain for our business”

“Good service, reliable and flexible. Good communication and systems know how”

“Prompt, courteous service. Warehouse staff is attentive, orders are shipped in a timely manner. Issues are immediately addressed”