You want to give your customers the best experience with your private label business. So what are some ecommerce shipping best practices that you should absolutely know about? After all, it’s your brand and your company! However, there’s no doubt about this – shipping and fulfilment affects whether your customer will hit the “Confirm Purchase” button… or not.
With careful research and planning, learning about the top shipping strategies can go a long way.
So, let’s see what the 4 ecommerce shipping best practices are that keep customers around!
1. Include shipping cost with product cost
What is it?
This method gives the illusion to your customers that they’re getting free shipping when in reality, the shipping cost is included in the products’ price.
Is this strategy right for your private label business?
Pros:
- When customers see “free shipping”, they feel more inclined to click the purchase button.
Cons:
- The shipping cost (let’s say it’s $10), might bring up your product price to be too high that customers will turn away from purchasing.
Pro tip: This strategy is best for private label businesses that have more established brand equity so your products’ higher prices are justified.
2. Free return shipping
What is it?
In the case where your customer needs to return a or exchange a product, this is where you can offer a free return where your business pays for return shipping. This is a popular strategy amongst ecommerce stores because this strategy has proven to drive conversion rates up, reduce cart abandonment, and enhance customer loyalty.
Is this strategy right for your private label business?
Pros:
- Customers love it! This is the best way to combat your customers’ buyer’s remorse.
- This is a great customer retention strategy because of the seamless return process. By making it simple for customers to return their purchases, you’re able to convert them into repeat customers.
Cons:
- The most obvious downside is the potential loss of profit. Consider how much the return shipping costs might be for your business to fulfil and how often you expect customers to return their orders.
Pro tip: this strategy works well if you private label products that have a high likelihood of buyer’s remorse or return rates such as clothing or footwear.
3. Flat-rate shipping
What is it?
Flat-rate shipping is where your customers pay a flat rate for every package or a rate based on weight ranges or order totals. Use this shipping method for standard shipping only.
How to calculate fixed shipping rate
Determine a flat rate charge by understanding the average cost of shipping a package from your store.
Is this strategy right for your private label business?
Pros:
- This method might encourage your customers to order more as they see that the shipping isn’t affected by their order weight or total.
- Forget about the box measurements and product weighing! If you’re self-fulfiling orders in your business, this might be a relieving option for you to keep up with orders.
- Best for businesses that sell products that are similar in size and weight.
Cons:
- You might lose out on a few orders when the flat rate is undercharging a few of your customers.
4. Free shipping on orders over dollar amount
What is it?
A great way to encourage customers to spend more is to offer free shipping after a certain dollar amount. Studies show that about 58% of shoppers will add additional items to qualify for free shipping. Most commonly, many ecommerce stores offer free shipping on orders over $50-$150.
Is this strategy right for your private label business?
Pros:
- Increase your average order value with this strategy!
- Guarantee high profit margins on each order.
Cons:
- Be aware of that when you encourage customers to buy more, the order shipping weight will increase and perhaps will lead to a pricier shipping rate. Ensure you’re covering the shipping costs in other areas of the sale!
Shipping Calculators
Want more information on how much it might cost for you to ship somewhere? Check out these shipping calculators according to your country listed below!
- Find a rate with Canada Post (CA)
- Calculate Time and Cost with UPS (USA)
- Retail Postage Price Calculator with USPS (USA)
- Get a Price with Royal Mail (UK)
Staying profitable
It’s important to know the ecommerce shipping best practices. Here are some more tips and tricks to stay profitable when your customers love free shipping.
- Offer short-term free shipping as a promotional offer to boost sales. It might be difficult for your private label beauty business to take on free shipping all year round – might as well use this as your advantage and create a boost in sales during the slow months of the year!
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Open a business bank account to get competitive shipping rates with local carriers. Here are a list of carriers that offer competitive rates for small businesses:
Shipping discounts and solutions with Canada Post (CA)
Small business solutions with UPS (USA)
Business prices with Royal Mail (UK)
- Consider lightweight packages for your beauty products so shipping costs are minimized. You can look into poly mailers and cardboard envelopes for smaller products, just ensure there’s enough padding for your beauty products so they don’t get damaged on the journey.
Conclusion
Understanding shipping strategies inside and out will be crucial to ensuring that your business won’t be losing profit on each order. Also, by having a clear returns policy that works for your business and your customers, your customers will feel at ease when making purchases on your online store.
There are also possibilities of including the method of dropshipping if you decide not to fulfil your customer’s orders. This model is made possible by starting your brand with Blanka.
