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How To Determine Ecommerce Shipping Costs

Oct 24, 2017

How do you weigh ecommerce shipping costs against your bottom line?

While, in theory, it would be fantastic for the customer if we could ship everything for free, in reality, that usually isn’t plausible. At Fulfilltopia, we aim to make ecommerce fulfillment and distribution a seamless experience, so let’s discuss three ways to make ecommerce shipping costs work for you.

  1. Free Shipping
    It seems that free shipping is synonymous with Amazon.com, right? And, if it’s feasible for your business model, free shipping certainly delights your customers. There are two methods to make sure this option doesn’t take away from your bottom line. This first is conditional, meaning if your customers purchase a certain amount, they then receive free shipping. Second, you can build the cost of shipping into your products so customers always receive free shipping.
  2. Real-Time Carrier Rates
    This is pretty straight-forward: shipping costs in this category vary either on the weight of the package shipped, and/or the destination. So, if you are shipping from East Coast to East Coast, the shipping costs would be lower than shipping from East Coast to West Coast.
  3. Flat-Rate Shipping
    This option simply means that no matter what customers purchase, they pay the same flat shipping rate. One thing to consider is that a flat shipping rate is an incentive for customers to buy more – it won’t cost them more to ship, so why not? Still, the overall addition or subtraction of flat-rate shipping has to play into your profit margins. Remember, you might be able to offer this option now, but perhaps one day.

No matter what ecommerce shipping choices you offer, there is a certain psychology behind which rates you choose. While you might take a slight hit initially, cheaper shipping for your customer might pay off long-term.

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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”