Whether you are planning to start an online store or already have one, shipping is one of the most important factors for your online business. One of the biggest mistakes made by majority entrepreneurs is neglecting the shipping strategy. The majority of the potential buyers abandon their shopping cart before completing checkout process because they find the shipping cost of the item to their location is something different than they expected. There are no such set of rules to define the actual delivery cost of products for your customers.
No matter whether your online store has effective design and attractive UI, if your store is unable to offer effective shipping options, you will undoubtedly end up losing potential customers. So in order to ensure low abandon rates and increased conversion, you need to have proper eCommerce shipping strategy.
Why Your Ecommerce Business Needs Effective Shipping Strategy?
Well, let’s convert this question into sentence – To reduce abandon rates and to boost sales. Do you even know that high shipping rates are one of the major issues of the increased abandon ratio? So to decrease ratio, we need to strategically plan out shipping rates and policy.
Have you ever noticed this pattern that is followed quite frequently – A potential buyer lands to your website, picks up the product, add to the shopping cart, redirects to check out page but suddenly leaves the cart in checkout. Why does this happen? Because he/she is hit by the extremely high shipping charges that are compensated against the offered discount. So, while defining the shipping policy for your online shopping business, make sure that you gain profit without letting customer broke your business.
How to Make Effective Shipping Strategy for Your Online Store?
1. Set Your Shipping Rates By Weight And Not Item Cost:
You might be wondering why so? Because the courier company you hire charges for item’s weight and not the cost. For smaller packaging, the actual weight from the scale is used while for larger packaging cubic weight is determined for shipping rates. So, it is highly advisable to calculate the weight before imposing any shipping charges on products.
2. Get Best Combinations Of Shipping Rates:
If you are unable to offer free or flat shipping for a particular set of products, you can easily choose a combination of shipping rates for products based on their checkout amount. For instance, you can offer free shipping for high-profit margin products. Alternatively, you can even set various tabs for shipping charges like if shopping charges are 1500rs or above, shipping charges would be on discounted rates of 100 instead of 150. Apart from that, you can even allow your loyal customers to be eligible for prime membership and enjoy free shipping.
3. Let Shipping Policies Be Transparent:
“Lack of Transparency Results in Distrust and Deep Sense of Insecurity” – Dalai Lama.
In order to succeed in eCommerce business, transparency is the key. Ensure that your business policies are clearly showcased on your website. As customers are the key aspect of any e-commerce business, it is quite important to maintain their trust in your online store. Such transparent business policies will not only enhance your brand reputation but also boost trust of consumers in your brand. Try to offer more shipping rate tabs, area availability and carrier service as much as possible.
Once you have a good understanding of your shipping cost, you can definitely plan best shipping strategies for your business. So, do you have any shipping strategy in your mind? If yes, let us know by comments below. Contact us now.