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How to Set Your Shipping Rates and Methods

How to Set Your Shipping Rates and Methods

Before you can ship products, you’ll first need to decide your pricing strategy for shipping. There are several common methods, but your choice should always be informed by the underlying financials of your business.

Offer Free Shipping

Offering your customers free shipping is one of the best ways to reduce shopping cart abandonment. However, as you might suspect, shipping is never free. Someone always has to pay. To make free shipping work, you have a few options.

  1. Increase product prices to cover costs for shipping (customer pays).
  2. You pay the full price of shipping out of your margins (you pay).
  3. Increase prices of products slightly to cover partial costs of shipping (you and your customer pays).
  4. Offer a discount code to certain customers for free shipping.

Additionally, you can also try offering free shipping on a minimum order amount. This strategy can help offset the costs of shipping by helping to increase your average order size, but you’re still the one paying for it out of your margins.

Charge Real-Time Carrier Rates

Another effective shipping strategy is to charge real-time carrier rates for shipping. Ecommerce platforms integrate in real-time with various carriers to generate shipping options and live pricing from various carriers. This allows your customers to choose and pay for the exact service they want.

Charge a Flat Rate

A popular option is to offer flat rate shipping. The best practice for this option is to try and make sure that you don’t drastically undercharge or overcharge your customers. Flat rate shipping works best when you have a fairly standard product line of items that have similar sizes and weights. Flat rate shipping tends to become complicated and less effective if you sell a wide variety of products with different sizes and weights.

Offer local delivery

Another method to consider is local delivery. This is a great option for businesses looking to offer a simple and reliable delivery method to their local customers. When you set up local delivery, you can customize your delivery area using a radius or a list of zip/postal codes. Customers who are within your defined delivery area will be able to select “local delivery” as a shipping method at checkout. Offering local delivery for free over a certain order amount, or offering it for a low cost can help you cut down on shipping costs and get more local customers.

If you have difficulty with shipping, AsiaCommerce has a service to help you. We can also help you to market and sell your products, both a retail product or a product that needs to be sold in a huge amount. We are making it possible for local business leaders to cooperate with the International global market. Besides export service, we can also help you to import, transport, search for foreign products, and handle distribution issues of your company in southeast Asia.

Need help with shipping? We can help you! You can fill the form here: https://asiacommerce.net/package-forwarding-international-dropship/

When Is The Right Time to Switch to Outsourced Fulfillment?

When Is The Right Time to Switch to Outsourced Fulfillment?

Most companies begin to fulfill their own orders, while some eventually use a third-party logistics solution as they grow. Thing is, sometimes it’s difficult to know when to switch, especially when you build your own company from the ground up with nothing but personal savings.

Businesses with various sizes can get benefit by using warehousing and fulfillment services. There are variety of companies that offer warehousing and fulfillment services, some of which specialize in smaller or larger-scale operations

However, there are clear signs that it’s time to switch to outsourced fulfillment.

Cyclical or uneven sales

If the number of orders you process fluctuates throughout the year, it’s probably difficult for you to handle to running and staffing your own warehouse. A logistics company will be able to adapt to your needs.

Besides, unexpected spikes in sales can interfere your delivery promise. An expert can handle times when your daily order volume peaks so you can focus on your delivery consistency and make efficient experience every time.

You’re too busy

Source: Freepik

If you’re too busy dealing with order fulfillment and thus distract your growth focus, it’s probably time to outsourcing it. As a business owner, you need to be able to devote time to sales and marketing, expanding to other e-commerce platforms, sourcing new products and ideas, and improving your business for the long term.

Lack of infrastructure

Source: Kit8

If you’re expanding your business geographically, you may outgrow your current infrastructure before you can adapt. Shipping to locations across the country or even the world comes with logistical challenges that increase expenses and shipping times. This can inhibit large-scale growth.

When you outsource to a global fulfillment partner, they’ll be better equipped to serve a growing customer base, leveraging multiple locations, and optimizing fulfillment accordingly.

Third-party warehousing and fulfillment isn’t right for everyone, but if you find yourself in one of these situations, it might be time to start calling around and chatting with logistics companies.

Do you need any help in fulfillment and cross border distribution? With the right fulfillment team, you can really focus on your business and assign operational things to us. All you need to do is fill the form here: www.asiacommerce.net, go to ‘need fulfillment’ section on our home page, then our team will contact you right away! Or just click here to enjoy our fulfillment service