Unfortunately, the cost of shipping is ruining the revenue of a high number of companies…
…And there is no reason for that to be. You can easily configure the cost of shipping to fulfil the wants of your customers — without throwing money away towards your shipping carriers.
Here are 3 ways to lower you costs of shipping:
1. Put a Limit to Free Shipping
It sounds almost too simple but the only way to put a limit to your free shipping is to limit free shipping. You can do so by doing the following:
Start by promising free shipping on your e-commerce store and within all your advertising. When the customer arrives at the checkout of your store this is what happens:
Make sure that only the cheapest shipping method is free (typically a pick-up point) while making other shipping methods more costly. In that way the customers pay extra in order to get express or home deliveries preventing you to pay extra to your courier.
By doing so, you still keep what you promise while not offering the more costly shipping methods for free. Several of our customers have experimented with limitations on free shipping and the result is great: No angry customers, neither an increasing amount of left shopping carts.
2. Avoid Free Returns
If you are selling shoes or clothing where there is a high chance of receiving a wrong size or shape it is great service for your customer to offer free returns by leaving a return label in the shipment.
However, if you are selling cables or coffee there is no reason to make it too easy for the customer to return the products. Do not create a complicated return-flow but think about what business you are in and if there there is a an actual need of free returns. If the need of returns is non existent in your business, do not higher the chance of the customer regretting the purchase and letting you pay for it.
If you are allowing returns within 365 days, let it be up to the customers to return to you if they regret their purchase and let them pay for it at the same time.
At Webshipper we have several bigger clothing brand customers who have been experimenting in how to avoid and limit returns from customers. If you are in the same business, you should try the same in order to limit the costs of shipping and time spent at your warehouse, maximising your turnover.
3. Use Several Shipping Methods
A research made by FDIH in 2017 shows that you reach a better conversion rate if you offer more than three shipping methods.
Make sure that you offer at least the following shipping methods in your checkout:
- Shipments to pickup points
- Direct shipments
- Business shipments
Furthermore, you need to think about in which situations your customers need your products. If you are selling clothes and your target audience is teenagers, it can be a good idea to offer express delivery so that the customer can order a dress thursday and have it ready for the party friday. Do yourself a favour and start offering:
- Express deliveries
- Deliveries during evenings and weekends
You can allow yourself to take a higher price for shipments that are not sent to pickup points as the customer is mostly willing to pay more for shipments with higher convenience.
Now you know how to eliminate your shipping costs:
- Put a limit to free shipping
- Avoid free returns
- Use several shipping methods
And remember: It is fair to pay extra for extra convenience. Just make sure that your customer is aware of this.
If you are interested in saving on the cost of shipping but you are in doubt about how to start experimenting with return rates, then Webshipper is a possible solution of a platform that you could use. Check out our functions here.