Shipping of customers’ orders that contain physical items is one area of eCommerce that we don’t know yet how to do it online. So, a retailer needs to decide what other shipping options to offer to buyers. As with most things the answer is “it depends”. Basic fact is that shipping of physical products costs money but it depends on buyer’s situation and the nature of products just how sensitive are buyers to charges and lack of options for shipping.
Example 1: If you are selling office supplies you can assume that a large portion of buyers buy new supplies when they run out of them and not a moment before. In that case having a same day or next day delivery option is very desirable. You can decide to keep low shipping charge for even same day delivery to be your competitive advantage if everyone else is charging a premium. Some larger business customers however may be more proactive in their buying patterns and they also care a great deal about the overall charges. For them a longer delivery is acceptable if they see that it will save them some money. A free shipping option on orders larger than a certain amount would be appropriate here for example. Knowing your customers’ needs, expectations, desires and what they can get elsewhere is key to making a good decision.
Example 2: You are selling furniture, which often incurs high shipping charges. You can offer reasonable shipping charges to not turn off your customers if you can incorporate the difference into price of the product. Some retailers on the other hand prefer to keep the product price low and then make the shipping charge large but often this tactic is the reason for buyers to abandon the shopping cart once they find out about these additional charges.
Example 3: You are selling gifts. While a next or same day delivery option may be desired by some customers it is most likely not of a sensitive nature for most and customers won’t mind paying a premium when they need it. A reasonable 2-5-day delivery options may work for most buyers. Also, when you give shipping options, tell buyers the expected date of delivery. For example, if you are a seller who offers only a same day high premium charge delivery option but another is a reasonably priced 5-day delivery option where what is meant is 5 business day delivery option, which in most cases adds 2 extra days to delivery. Such shipping options may not work for most of your buyers in addition that they mostly never know when their items are going to arrive.
Shipping options and charges can be a great service to buyers if they are designed around their needs, expectations and desires and they can also be a reason to go and buy elsewhere if they are not offered or if the charges are perceived as too high.
Finally, look at 3-5 of your closest competitors or online stores that sell same products as you and draw some inspiration. Then also look at the Amazon as they mostly have some of the best policies and practices out there that buyers like and expect.
You may after reading this post know little more about what exact options to offer to your buyers but hopefully you are leaving aware of the “one size does not fit all” nature of the shipping alternatives that you need to be offering. Take some time and consider this subject specifically for the nature of your products and their buyers and provide options that provide good service to various buyers and at a sensible price.
