5 Best Organic Marketing Strategies on a Budget

5 Best Organic Marketing Strategies on a Budget

Marketing is always a complicated thing to do for businesses. Sometimes it can be easy and sometimes it can be very hard to do. There are also ways to pay for marketing and then sometimes word spreads organically. Different marketing approaches will have different effectiveness. Organic marketing will typically be more effective and lasting than a paid marketing approach. However, organic marketing strategies are often difficult and need a lot of effort. Luckily, with the ubiquity of the internet, there are budget strategies to achieve organic marketing.

What is Organic Marketing?

Organic marketing is essentially anything outside of the typically paid strategies. This does not mean it is cheap because it is still going to cost money and effort. Its price comes from the randomness of organic marketing. You can never know what works until you try it and that is why it still costs money. Organic marketing generates free traffic into your business. Usually, simple tactics work, but you have to try a lot of things before you can determine which method works best. Organic marketing is usually more robust and effective.

Great examples of organic marketing would be holding workshops that integrate your product or business. People will get value from this event and may be attracted to your business. However, the workshop itself is not a marketing strategy, it is an actual event or even a product. These kinds of things get people talking and therefore develop a more organic type of marketing.

What will you need for effective organic marketing?

Organic will not work with just any business and product. There are requirements that need to be met for it to work.

1. The first thing is a unique and interesting product. Having an interesting product will help a lot since people often talk about interesting products. Having a successful product will definitely help a lot with organic marketing.

2. A clear target audience that fits your business. You need to know who your audience is and what will attract their attention. This way you can tailor your plans and strategies to target your audience more effectively.

3. Great product description and enticing copywriting on your product page. This is so that your viewers or bystanders can be converted into customers. What good is a great marketing strategy if it does not increase customers to your business?

These are the 3 things that you will need to have an effective organic marketing strategy. If you noticed, these things are fairly easy to get. This is because these things are only the foundation to a great organic marketing plan. You will need great strategies for organic marketing.

Organic Marketing Strategies

Now is the part where we will be discussing the strategies you can employ to have effective organic marketing. In essence, organic marketing will utilize anything outside of the typical aid marketing tactics to gain traffic. However, since we are on a budget, we will have to be creative.

1 Create a Blog about your field of business

A blog is one of the easiest and simplest strategies to do. You can create blogs that have topics about the products you are selling. This can range from product reviews, news, education, and many more. However, the hard part about blogs is that standing out amongst the competitors is very hard. There are already millions of other blogs out there. But if you can make an interesting and engaging blog, it will be effective.

2 Make video content on your products

Making video content will be very useful in organic marketing. Many people use videos before they purchase products. Consumers these days usually do research before they purchase. Making content that facilitates research for consumers makes it easy for you to attract them to your business. However, video content may be hard to do since you would need to shoot and edit. But you can also post videos on Instagram or Tiktok where it is significantly easier to make videos since all you would need is a smartphone.

3 Organic social media strategies

Making content and having a presence on social media would be a great idea. Not only is it easy to do, but the reach will also be very high as well. A large part of the population in many countries uses social media. The things you can do are giveaways, competitions, discounts, and more. In addition, many social media sites have a built-in e-commerce feature. This means that you can easily integrate your social media with your business.

4 Great SEO

Discoverability is important for organic marketing. Unlike typical paid marketing, you won’t have a priority placement on platforms and services. You will have to tailor your content to be compatible with the search engine. This is called SEO or search engine optimization. With great SEO your content and business will show up more frequently and more prominently when a consumer searches for something. There are many ways to do this, the most common is using the right keywords or tags.

5 Strategic partnerships

Lastly would be about strategic partnerships. This means that you should try and collaborate with other businesses or influencers. This won’t be like the typically paid sponsorships, you should find a mutual benefit. You can partner with a business that offers a service or augmented product that can add value to your business. In addition, customers from your partner may be attracted to your business and vice versa. This leads to great organic marketing and more value for you.

So that is how we would do organic marketing. There are so many ways to attract new consumers. Marketing that is done organically is a great way to expand your business and grow. However, what about the other parts of your business like procurement or logistics? AsiaCommerce is here to help. We offer services that range from export imports, procurement and sourcing, logistics, and forwarding. We can help with reselling, sourcing, and dropshipping. In addition, we offer extensive educational content that can help you develop your business skills. Check out our many services and gain many awesome benefits for your business!

Breakeven Analysis: Will My Business be Succeed?

Breakeven Analysis: Will My Business be Succeed?

Making and building a business is always complicated and scary. We never know if a business will succeed or fail because even the best businesses can fail. However, that does not mean we cannot create estimations of our success and the viability of the business. By doing a breakeven analysis before building a business, you can find out whether your business will make money or not. This method is mainly an accounting way of seeing whether you can succeed or not with the business. Don’t be scared though because this method will be very simple. A breakeven analysis is also not just limited to businesses, it can also be used for projects or purchases. This way you can make good decisions and avoid future mistakes.

Breakeven Analysis in a Nutshell

A breakeven analysis is a method of determining how much revenue you need to have to cover the costs of a business. Revenue includes anything that makes money from your business while costs range from the costs of the goods to other costs like electricity and more. It is a financial tool that can show whether your business makes money or not and even how much money you may make. As its name implies, a breakeven point is when your income covers your costs but not making any money as profits. The breakeven point shows you much you need to make in order to not lose money. You can use this to determine the minimum amount of sales.

Let’s say you want to start selling laptops online. You can use a breakeven analysis to know how much laptops you need to sell in order to cover costs like storage, delivery, administration, and more. Any point above the breakeven point is the profit that you can make. There are two types of costs that you need to consider, fixed costs and variable costs. Fixed costs are costs that will stay the same regardless of other factors like rent, car payments, wages, etc. Variable costs are costs that change depending on the level of sales like delivery, storage, packaging, etc.

How to Do a Breakeven Analysis

A breakeven analysis can be done pretty easily as long as you have the determination and know-how. It is not that complicated so anyone can do it. Now we will discuss the 5 steps to do a breakeven analysis.

1. Determine your variable costs

First, you have to find out the costs that change with your sales. You need to find out how much you are spending in order to sell a single product. This can be things like packaging, storage, stickers, printing, and more.

2. Determine your fixed cost

Afterward, you need to find out how much costs you have that don’t change. These costs are not affected by sales and you have to pay them anyway. For example, rent and wages are typically fixed costs. These fixed costs are difficult to change, so before you make a business, make sure your fixed costs are as low as possible.

3. Decide on a selling price

Now you have to decide on the price of your products. Don’t worry about this since you can always change it later on. The prices should be set reasonably and be prepared to change them. Your price should be a range of prices which you can accept. This will affect the sales volume in the next step.

4. Decide on the sales volume and its unit price

 Now you need to determine your sales volume as well as the right price to use for your sales volume. This will be important in determining the breakeven point. The volume that you set will impact your sell price. For example, if the volume is big then the sale price can be lower and vice versa.

5. Create a spreadsheet for ease of use

Lastly, be sure to make a spreadsheet. Spreadsheets can be difficult to make, but if you have experience or help it can be done. To make things easier, you can also download a template for a breakeven analysis on Microsoft Office’s website. This way you can do everything easier and quicker since all you need to do is just input the data.

Another option if you don’t want to use a spreadsheet would be to do it by hand using a formula. However, this would be very complicated and it is easier to do it with a spreadsheet. The formula is:

Breakeven Quantity = Fixed Costs/ (Sales price per unit – variable cost per unit)Although the formula seems simple, determining the costs can be complicated so it is better to use a spreadsheet for the calculation. But don’t worry since you can find plenty of templates for a breakeven analysis where you only need to input the data.

Methods and Strategies to Lower Breakeven point

Once you know your breakeven point you can determine whether you need to lower it or not. There are great strategies to lower your breakeven point which we will discuss now.

1. Lower Your Fixed Costs

One of the best ways to lower your breakeven point is to lower your fixed costs. This is because fixed costs are typically high and not easily changed like variable costs. This can be things like moving offices or even working from home. You can also decrease employees or wages but this can have negative impacts. However, fixed costs can be hard to decrease.

2. Set a Higher Price

If decreasing fixed costs are difficult, you can set a higher price for your products. Higher prices mean more revenue which can cover the costs better. However, increasing sale prices can decrease your sales volume because fewer people will be willing to buy. So be careful how much you increase.

3. Decrease Your Variable Costs

Lastly would be to decrease your variable costs. This can be like using a cheaper packaging material. Decreasing variable costs can decrease your breakeven point because the costs of selling can be lower. However, the effectiveness of decreasing variable costs depends on the number of sales that you have.

Once you do all of that then you are all set. You can analyze your business plans and models so that you can make good decisions and avoid mistakes or hardships. Breakeven analysis can seem hard and complicated but it is actually very simple, so don’t be worried or discouraged to try. Good luck doing business guys!

Now that you know how to do a breakeven analysis, you can be more effective in business decision-making. You can start making the business that you always wanted. These days you can do this easily because of the internet and many services. One of the best ways of decreasing fixed and variable costs are to subcontract or outsource some parts of your business. This is where AsiaCommerce can help you out. We have an extensive network that can minimize the costs of your logistics and product sourcing. We offer services that range from export imports, procurement and sourcing, logistics, and forwarding. We can help with reselling, sourcing, and dropshipping. Join AsiaCommerce’s membership today to get many benefits for your business!

Creating Effective Social Media Marketing Strategies

Creating Effective Social Media Marketing Strategies

Marketing through social media is a really good way to increase customers for your business. Not only does it have a really wide reach, but social media marketing is also affordable and easy to do. Conventional marketing is typically costly and not easy to do for newcomers. If you have an online store or business, social media marketing is incredibly useful to increase traffic and interest in your business. However, just because it is social media marketing does not mean that you should do it in a similar way to how you would run a personal social media. There are many factors to social media and steps that you have to follow. Today we will discuss how to create an effective social media marketing strategy that will help your business gain more customers and brand name.

Research Your Needs and Audience (STP Model)

The first thing that you need to do is to research which key demographics will fit your social media marketing strategy. To do this you can use the STP Model which includes segmentation, targeting, and positioning. By knowing your audience, you can research what you need to do and what type of content you have to make for your social media. The STP Model will help you in determining where your business is focused on, who the main customer base is, and who the target consumer is for your social media marketing. You will also need to find out what you need from your marketing strategy. Decide whether you want to increase awareness, increase purchases, improve image, or many more. The strategy that you will decide depends on what you want to get from your social media marketing strategy.

Plan Everything and Set Goals (SMART Model)

Now comes the stage where you have to establish a general goal for your marketing strategy. This goal should be made based on the SMART Model. The SMART model states that a goal has to be specific, measurable, attainable, relevant, and time-based. If your goals match the criteria, they will be effective and bring in good results later on. Afterward, based on your research you will have to determine which social media platforms to use. Depending on the demographic, the social media platform and media type will be different. If you are aiming for older audiences, Facebook is a really good choice since older age groups tend to use Facebook. But Facebook is already so large that it is good for any demographic. However, if your target is mainly young adults and teenagers, platforms like Instagram and Twitter are a good choice. If your target is teenagers and tweens, Tik Tok is also a very good choice. Then there are platforms like YouTube which can be a main platform or a side platform used to improve the main social media platforms.

Determine Which Metrics and Key Performance Indicators You’ll Use

Once your plan is set, you will have to determine what kind of statistics you need to focus on. In the world of social media marketing, the number of followers is not everything. Engagement, turnover, and shares are also very important. A common mistake that people make is buying followers. It may look good, but it does not do your business any good. A loyal and active follower base is more useful than a large but inactive follower base. You can also use metrics from your store or sales to judge your performance. The statistics on social media platforms don’t always show the full picture. Consumers might see your post and decide to purchase your products without ever engaging with the posts.

Establish and Manage Engaging Social Media Content

Now comes the fun part, content creation. Different content types have different impacts on your social media accounts. Posting things like memes and funny content will increase the chances of users sharing your posts. However, it does not help with promoting your business or service. Educational content can increase the validity of your content and business. It can also help with engagement or even direct users to your business and become potential customers. Content that promotes your business can direct consumers to your business and increase awareness. However, most users will not follow your account if all you do is promote your business. You need to create a content plan that mixes all of the content types that we discussed. This way you can gain benefits from these types of posts as well as minimizing the negative effects. The content that you make will also have to be switched and refreshed after a few weeks so that users don’t get bored. If you also have other types of content like a podcast or video series, it will also help in making social media marketing strategies more effective.

Determine a Consistent and Fitting Content Schedule

After you create a good content plan for your social media platforms, you have to make a schedule and stick to it. The algorithm in platforms like Instagram and Twitter prefers accounts that post consistently and in high traffic times. If you can post in a consistent schedule and during high traffic hours, your posts will be promoted by the algorithm to more users. Taking long breaks and leaving your accounts inactive is a bad idea as you will then have to start from scratch with the algorithm. Be sure to look at your metrics to determine which time fits your target demographic.

Look Back and Assess your Performance, Make Improvements

Once everything is in place and you have already started your social media marketing strategy, don’t forget to assess how it’s going. Don’t stop trying to improve it even if it’s going well. You will be able to view the insights or statistics of your page. Use this information to assess your performance and identify things that can be improved. For example, on Instagram, you can see the account reach and if it’s low or below expectations then you should consider changing hashtags or tags. Always try to improve and never settle.

Now you know how to create an effective social media marketing strategy. This will help out a lot in the marketing and sales aspect of your business. However, you might still have issues with procuring and sourcing products or shipping and distribution which can be tedious. AsiaCommerce offers you a chance to improve this aspect of your business. With us, you can sit back and not worry about sourcing products because we help with everything from finding buyers and shipping. Join AsiaCommerce today through the link below and grow or start your business today!

The ABCs of a Reselling Business

The ABCs of a Reselling Business

In this day and age, the sheer amount of opportunities for business is amazing. You can start building your business with small amounts of capital and few resources. As long as you have a mixture of luck and determination, anything is possible. A popular business plan is reselling. Becoming a reseller is relatively easy and a good way to start building a business. There are so many platforms and mediums to become a reseller in this day and age. Back then, businesses were constrained to the physical world where people needed to have many connections, an office, and many other things. In the modern age, all we need is knowledge, capital, and internet know-how. Of course, this is to merely start a business, we need much more to grow and expand our business. In this article, we will discuss the basics of reselling. Mainly what reselling is, how to become a reseller, how to get products, and ways to achieve success in your reselling endeavors.

Reselling in a nutshell

In a nutshell, reselling is a business model where an individual or firm purchases goods from suppliers or distributors and sells them in their own stores. This seems like a very basic business model, and it is. However, the definition provided seems simple because it is merely the gist of it and the main goal of reselling. What most people don’t realize is that each step within the reselling process has become complex and varied. From the very start which is the manufacturer, various types of manufacturer and product sources have popped out and give resellers a bunch of options for their business. For example, there are manufacturers who can customize the products to an extent so you can resell their products with more customization. 

Maybe now you’re wondering why can’t the manufacturers just sell it themselves if they can make the products. The answer lies in the focus of a business. Manufacturers focus on creating the products, however, they may not have the capabilities or resources to directly sell to the consumers. It is also a big risk to sell directly because if the goods don’t sell, your loss will be bigger. If they sell to resellers or retail shops, they have a guaranteed consumer base and they don’t have to invest as much in order to sell their products. And then there are distributors who essentially provide a path from manufacturers to resellers or retail and to the consumers. They can sell it by themselves, but their focus is on connecting manufacturers and resellers so it is safer and more profitable for them to not sell it on their own.

Steps to become a Reseller

It is actually very easy to start a reselling business. However, succeeding and growing a reselling business is another thing. But let’s discuss how you can become a reseller first.

1. Think of names and a focus for your business. This would be the most fun stage of building a reselling business. A good name is memorable and interesting. It should also relate to the focus of your business. This is to establish an association with consumers. Your business should have a focus as well so that consumers can know what market you serve and are therefore more easily remembered. A store that sells everything can be a good thing in some cases, but in this context, it is better to be more specific. A good way would be to pick 1 or 2 niche categories to focus on.

2. Choose a product supplier that is reliable and has the perfect price. Having the right supplier is important because it impacts a reselling business heavily. Make sure that they are trustworthy and have good quality products.

3. Determine where you want to sell your products. There are 3 options for where you can sell your products. The first and easiest would be through e-commerce platforms like Amazon, Shopee, Lazada, and many more. These platforms are usually very easy to set up and are a very secure option. The second option is through social media like Instagram and Facebook. Social media platforms have an advantage in the reach that you can get. It is relatively easier to gain exposure through social media. The last option is to sell using your own website by utilizing Shopify or Woocommerce. A really good option for an online reselling business would be onlinestore.id as it is easy to use and offers a wide range of benefits.

4. Choose products from your previously chosen supplier or warehouse. Be sure to choose only one supplier because it will be cheaper that way. The shipping costs and additional costs will be calculated from the warehouse to the client. So it is more cost-effective to use 1 supplier or manufacturer. Using multiple warehouses and suppliers will mean that you will have to pay to ship twice because it is from different places. With one, purchases of even multiple products can be grouped and shipped together in one shipment.

5. When you are selling your products, be sure to create additional value for your consumers. This can be done by giving out discounts, bundles, and limited items. Artificial scarcity or added value engages consumers to purchase your products. The value that consumers see would not just be the inherent value of the products, but it will also be the benefits that you created. This will help make your product stand out and more attractive.

6. Advertise your products on social media platforms. You need to generate buzz and excitement in your products and store. Social media platforms are a relatively easy and cheap way to advertise your products. If you have social media skills, utilize that to the fullest extent to create organic and interesting advertising for your products.

7. You can use online ads for promotions regarding your product. The ads referred to here are not social media posts. But they are actual ads you would usually see on websites. These ads can be a picture or a video. To get the most out of ads, you will have to invest a little bit into them. Internet ads, like those by Google, are usually targeted ads that are very efficient. However, be careful not to spend too much as it can eat into your profits if you spend too much on advertising.

How to find and source products

Finding products to resell is a fundamental aspect of building a reselling business. A smooth and reliable supply chain is the most valuable thing in this field. You can grow your business faster and better with a great supply chain. Knowing how to find and procure goods to resell is not easy, but it’s not hard either. The most obvious thing to consider is the cost of the goods you acquire. The costs have to be low enough that you can implement a healthy profit margin. 

A good place to look for products to sell is usually countries with cheap and large manufacturing industries. Countries like China, Vietnam, and Indonesia are really good options. The deals you make should also be future-oriented and not focused on short-term gains. This is because a good relationship with suppliers is valuable in reselling. However, if you don’t think you can source products effectively or if you don’t have time there is an alternative. There are firms that you can use to outsource these duties. These companies help with sourcing and procuring goods from manufacturers or suppliers. This way you can focus on your reselling business. Although you will have to spend money, the gains outweigh the cost as everything in your business is significantly more effective.

Now you know what a reselling business is and how to start it. You can start all of the aforementioned things relatively easily. All you need is some determination, a little bit of capital, and some know-how. You can learn more about this business field through various resources provided by AsiaCommerce ranging from blogs like this to Webinars with skilled and experienced speakers. However, we offer many benefits if you become a member of our reseller network, we also offer various exemplary services that can make your reseller business run smoothly and effectively. Go to the link below to learn more.

How to Set Your Busy-Season Shipping Strategy

How to Set Your Busy-Season Shipping Strategy

Your process is set and you’re all stocked up on supplies. The next step is to figure out the customer-facing details—specifically, what are you going to charge for shipping?

The most common options are free shipping, flat rate shipping, and exact cost shipping. We’ve got some tips to help you figure out which one is right for your store.

1. Free shipping

Shipping costs are frequently the most-cited reason why people abandon their carts, so offering free shipping is a smart way to use a compelling offer to improve conversion rates, without solely relying on percentage or dollar value discounts.

That said, it’s not always cheap to provide, even with the discounted rates you get through with USPS, UPS, DHL, and Canada Post. If you want to offer free shipping to everyone, you need to understand how it affects your margins and what rates you’re on the hook to cover—including what it costs to ship your heaviest items and shipping to your furthest locations.

However, it’s not all or nothing when it comes to free shipping.

You could offer free shipping some of the time, to some of your customers. Consider sending a free shipping coupon code to your current customers to encourage repeat orders, or offering free shipping above a certain order size to increase your average order value.

However, when providing free shipping, you’ll need to watch out for shipping cutoff dates. If you’re only springing for free standard shipping, you’ll need to make the expected arrival dates crystal clear so your customers can order in time for their holiday of choice.

2. Flat rate shipping

If you want to offset some of your shipping costs and still avoid sticker shock when people check out, a flat rate shipping policy could be the perfect fit. With flat-rate shipping, set a price that will cover most of your shipping costs, most of the time, and be ready to cover the cost for particularly expensive shipping options or items.

With flat rate shipping, aim to set a price that will cover most of your shipping costs, most of the time.

Your customers will always know the shipping fees ahead of time, and you’ll still recoup most of your shipping costs, which is the best of both worlds.

3. Exact cost shipping

With exact cost shipping, customers can see exactly what it’ll cost to ship their order, and pay for it when they check out, and they’ll get the same discounted USPS, UPS, DHL, and Canada Post rates.

Remember, cart abandonment rates tend to go up around BFCM and other holidays, and shipping costs are one reason why.

Just remember: Cart abandonment rates tend to go up around BFCM, and shipping costs are one reason why. It’s not a deal-breaker to offer exact cost shipping, especially if that’s what works best for your business, but it is important to be aware of the potential impact—and have a plan in place to win back shoppers who’ve abandoned their carts.

4. International shipping

You might not be shipping internationally right now because it seems complicated and expensive, but it’s not as tricky as you think it might be. Plus, customers are more and more likely to shop outside of their borders, so if you’re considering expanding your audience, an international shipping strategy is one great way to do it.

Once you’ve decided on a pricing strategy, it’s time to get into implementation by making sure each product is shipping-ready, and that starts with adding accurate weights.

If you have difficulty with setting shipping strategy for your online store, 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 fulfillment? We can help you! You can fill the form here: https://asiacommerce.net/south-east-asia-marketplace-distribution-fulfillment/

How to Set a Shipping Strategy for Your Online Store

How to Set a Shipping Strategy for Your Online Store

A new customer comes to your website, finds a product they want at a price they like and adds it to their cart.

They get to the checkout page and then it happens. They get hit with the shipping and handling rates and all of a sudden they start second-guessing their decision to buy. 

Suddenly a product they thought had a fair price is starting to seem a little expensive. One of two things happens next. Either they decide to press on despite the increased costs, or they abandon their cart and leave your website disappointed. 

So what can you do to influence this decision? 

Let’s take a look at some shipping strategies and how you can use them in your business. 

Shipping Rates and Abandoned Carts

The real challenge when figuring out your shipping strategy is determining a solution that cuts into your margins as little as possible yet remains attractive to your customers.

And this is something you’re going to want to get right. Studies have shown that shipping and handling fees are the number one factor driving shopping cart abandonment. 

Shipping Rates and Abandoned Carts

With this information in mind, let’s look at the three most common shipping options and the pros and cons of each. 

Option 1: Offer Free Shipping

Offering free shipping – usually just for domestic orders – is a sure-fire way to get your customer’s attention, however, depending on your margins, it can also potentially cut into your profits.

That said, the marketing punch that displaying ‘Free Shipping’ on your website provides can be a significant advantage over any competitors that don’t offer the same perk. Deciding to offer free shipping will require you to either absorb the cost or slightly increase your prices to cover it.

You could also try offering free shipping with a minimum order amount or minimum number of items. This should drive up your average order value and help you have more profit dollars to apply the shipping cost against.

Prominently advertising that you offer free shipping can be an effective way to drive up conversion rates. Chubbies offers free shipping on all their shorts (including return shipments) and which they proudly display on their website so customers shopping know that the price they see is the price they pay.

Option 1: Offer Free Shipping

Determining whether to offer free shipping or require a minimum threshold often comes down to your margins and the niche you operate in.

If you offer luxury or handmade, one-of-a-kind items, rolling in an extra percentage for shipping and handling into the cost of your products probably isn’t too much of an issue. However, if you’re in a highly competitive market where both free shipping and the lowest prices are the norms, like refurbished cell phones, for example, marking up your products to cover shipping costs may not the best idea. This is where you have to consider either a different option entirely or absorbing the cost for the shipping on most of your items.

There are, of course, exceptions.

Large or particularly heavy items like full tower PC cases or furniture can cause some problems for your ‘Free Shipping’ promotion. Doing your research and knowing your numbers about things like how much each of your products actually costs to ship, how your competitors handle shipping, and your allowable profit margin can help you make the right decision.

Option 2: Charge What You Get Charged

In some shopping carts, it’s possible to set up real-time shipping quotes – in other words, your customers more or less pay exactly what you would pay to ship your products.

There are always small discrepancies that can happen, of course, but in many cases, you can end up breaking even between the shipping charges you collect and what you ultimately have to pay to ship the package.

Simple Sugars, a store that was recently on Shark Tank, employs this tactic, offering real-time shipping quotes to their customers at checkout. Once a customer gets to the checkout, they select where they want their order shipped to, and the calculator does the rest.

Option 2: Charge What You Get Charged

Using a real-time calculator like this can win you a lot of trust with your customers. It shows that you aren’t inflating your quoted shipping fees or raising your item prices to cover the charges.

This strategy doesn’t have the same persuasion power free shipping does but it’s an easy way to make sure that you’re not draining shipping costs out your ears, and that your customers are getting the best deal possible.

This is also a good option to use for heavy or oversized shipments that you simply cannot or do not want to allow to ship out under a free shipping promotion.

Option 3: Offer Flat Rates

Your third option is to offer a flat rate for every package, or flat rates for weight ranges and order totals.

This particular method of charging for shipping requires a bit of preparation as you need to figure out your average cost of shipping a package. This is a best practice you should be doing anyway to make sure that you don’t drastically undercharge or overcharge your customers.

When you hit the right cost, you’ll probably be over – or under – the actual shipping cost by a little, but it should even out in the end. 

Truly’s Natural Deodorant takes the flat rate approach, and has a simple $2.99 charge for a single product order.

Option 3: Offer Flat Rates

Angela Collison, the founder of Truly’s says her “main focus in setting up my shipping prices was to make it as inexpensive as possible while still delivering the product in a reasonable amount of time. My products are relatively inexpensive and I don’t think anyone wants to pay as much for shipping as they do for the item ordered. USPS was a good fit for us as they are very affordable for single items and their flat rate priority options allow me to ship out multiple items for one flat rate regardless of the weight. I was able to set up price-based shipping as I have only a few different products, but I am not sure how that would work out for someone who has a large number of products.”

The above quote highlights an important point about the nature of flat rate shipping: figuring out what flat rate works for you, and if you need to do it by order totals or weight ranges will require some testing.

Luckily, USPS does offer a few different sizes of flat rates boxes, and if you have particularly small, but heavy objects, taking advantage of the cost savings from cubic shipping prices can help to bring your flat rates into a comfortable range.

Of course, every business is different and only through testing will you find out what works best for you.

You’ll need to find out the statistics on your products and the best ways to ship them to be able to make the most strategic decision possible. This is where additional apps can help you find information and alternatives (both with shipping carriers and methods) that you may not have had access to previously.

Option 4: Outsource shipping to a third-party logistics provider (3PL)

Outsource part or all of your distribution and fulfillment services to a 3PL. They deliver your products with an out-of-box experience—some 3PLs can even handle returns and provide ePacket tracking.

If you have difficulty with setting shipping strategy for your online store, 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 fulfillment? We can help you! You can fill the form here: https://asiacommerce.net/south-east-asia-marketplace-distribution-fulfillment/