Shipping * Feedback please

Jeff Horton

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As many of you know I run a small internet base business and 99.9% of my sales are shipped. As the commercial says "Shipping is a hassle". I love my stores software but the shipping calculations are lacking. Bottom line is there isn't a good way to list shipping costs so that sometimes I don't loose money or I overcharge my clients.

I have had a couple of orders lately that ended up costing a lot more to ship than I allowed for, just because they bought a combination of things I didn't expect and they wouldn't fit in the flat rates boxes. So I am taking a serious look at the subject.

I am considering different options and just wanted to hear from consumers what gripes you and what you like.

One option is raise prices to include an allowance for shipping. Advertise free shipping, but of course it is not really free. Draw back is my price is going to look high. Total price may actually be higher this way.

I have thought about adding some of the cost into the price so that my prices are not way above everyone else. Then charge a smaller shipping fee to make up the difference. End result is the same but it make shipping look cheaper. Not like I am trying to gouge people.

Maybe there is something I have not thought of?


Love to hear peoples gripe and thoughts on shipping. Even when people are unreasonable about shipping it lets me see their thinking. ;)
 
I have seen some websites where they specify that they will contact you to tell you the actual shipping rate before the purchase is completed.

Could you keep using the flat-rate shipping for most items, but for any "large/complex" orders have it do the same sort of thing?

That said, I do prefer knowing everything right up front. :huh:
 
How about flat rate shipping on "most" items that will fit into the flat rate box, and "actual" shipping on all other items. Your web site could include a shipping calculator much like the one you often see on eBay. Potential customers plug in their zip code and the calculation is done on the total weight of what is in the shopping cart. I believe the link is supplied by UPS and they are actually doing the calc. When I've used this I've always built in a small charge that gets automatically added into the shipping total to cover my packaging.
 
I've done quite a bit of ordering of parts lately. A couple of vendors took the order, but stated that my card would not be charged until they shipped the item. When the items shipped the charges were a few dollars less. I'm assuming they had estimated for individual packaging of the parts, but then combined them and charged actual shipping instead. I didn't get charged higher for any of them either, which I would have complained about. ;)
 
There's no doubt that people would rather buy something instantly, but when I shop online, I'm fine with them saying that they will confirm shipping costs with me before doing the transaction.

I don't know how your software works, but can certain things be keyed to show shipping automatically, and others keyed to needing a confirmation because it's a weird shape/size or whatever?
 
I have never liked companies that charge based on price. Shipping deals in weight and size not cost. I prefer the flat rate box shipping for things that fit and actual cost on items that will not fit in flat rate boxes. I don't know what or how expensive software is that calculates shipping based on weight and zip code, but that would be best for non flat rate items. I also like the places that gives the buyer options and the buyer select which they want.
 
Keep it coming! Good info.

But I can tell you that Shopping Cart Software weakness is usually in shipping. If they could access USPS, FedEx, UPS, ect and pull out their current rates that would ideal!! I would probably buy it. But as it is most give you some options such as weight based or price range shipping. Not great option and they are a real pain.

I have never liked companies that charge based on price. Shipping deals in weight and size not cost. I prefer the flat rate box shipping for things that fit and actual cost on items that will not fit in flat rate boxes. I don't know what or how expensive software is that calculates shipping based on weight and zip code, but that would be best for non flat rate items. I also like the places that gives the buyer options and the buyer select which they want.

Good points. From the business side all those are just not practical. As a VERY small business I ship Postal Service only (with rare exceptions). Reason being is they pick up at my shop. I don't have to drive and stand in line somewhere and 'Time and Gas' is money.

I would prefer to use UPS but they try to charge me ... I think it is $12 to pick up my shipments because it is residential. That is on top of the shipping costs! As small as I am Postal Service is the cheapest by a long shot.
 
when you ship a way other than flat rate you have to consider the cost of the box and packing materials into the actual shipping costs.

when I had my tool store I quoted my shipping as "shipping and handling" I added 20% of the estimated shipping costs to cover these expenses. Plus the time and gas to get to the PO or UPS terminal.

I never had any complaints
 
I cancelled an order just today for a gun related item. The item was about $11.00, shipping was over $17.00. The item was small and lightweight. It would have gone in a small envelop for under $1.00 or, at worst, in a flat rate envelop for about $5.00. I e-mailed the company and told them never again will I buy from them.
UPS is competitive and will take odd shaped items.
 
Lately I wanted to buy a limited time tool from the manufacture but when I looked into shipping it was outrageous. The next day I got an email for the same tool from a popular woodworking company when I added it to my cart and added shipping it was much cheaper. I sent an email to the president of the manufacture and got a great response telling me to purchase it where I could get it cheapest and blamed his shipping software.

In this case I am sure the manufacture made a lot less money because he sold it wholesale to his channel vs. retail to me. On the other hand he would have gotten nothing from me because of the shipping cost.

I know that was not an answer but it does give you a consumer perspective.
 
Jeff are you talking about shipping within country or is that international shipping?

When I have ordered things on line shipping was most usualy extra ( if it was outside a given area) of course being out side the states there is duty on top of the shipping and then local tax's ( depending on the size of the purchase) and then there could be broker fees too.

Using the post is good but when I shipped a 10 dollar stuffed animal ( fit into a 12x12 box) to australia a few years back for my nephew it cost 25 bucks shipping. :eek:

I ordered my cedar strip kayak plans 10 years ago from oneoceankayaks.com and they have a pricing list for shipping rates that might be helpful.
 
I know that was not an answer but it does give you a consumer perspective.

Exactly what I want to hear.

One thing I am learning is it is as much about how it looks as much it costs. I look at the total cost, but some people can't get past the shipping costs regardless the total cost.

Jeff are you talking about shipping within country or is that international shipping?

Both, I have been surprised but I sell a far amount overseas. Australia and European countries are not uncommon. But there is no way around the high international rates and there is no way to make them look cheap. :eek:
 
It is truly a marketing decision on how to charge shipping, and I'm sure the answer varies with what you're selling, your customers, average cost, average item size, sales volume, whether they're ordered with other items a lot, etc.

The easiest thing that comes to mind is to increase the price some on bulky items. Try and average out the extra costs over a year, and apply them to where it'll offset the extra costs you incur. You can keep your software, shipping method, and less bulky items the same to minimize impact on your business.

edit: One other thought. I assume your shipping software has some kind of weight/size input based off the items. Can you just put a little extra volume on certain items in the software to make the charges come out on average, closer to the true cost?
 
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One thing to consider is the parts you are shipping, can they go into a padded envelope vs. flat rate box? I've ordered several electronic components that showed up in a padded envelope, which surprised me. However, out of 4 packages like this, not one part has been damaged. Either their cost of sending the components again is not that much or they just never have to send replacements. :dunno:

It may also be worth taking a step back and looking at your business plan. Are you wanting to be a retailer? I don't know the kayak industry very well, I'm just looking at it from the perspective I had when I did stained glass. I enjoyed the building of the lights I sold, but the retail side was a lot of overhead, time wise. I spent a lot of time working on marketing, figuring out shipping methods, running to the mail office for small orders. After evaluating my business model, I found there was a market for the parts that I was putting into my lights. I did the manufacture and pre-assembly of the light base, but left the final product up to the purchaser. The glass work, packaging, and shipping was a huge cost in my product. I was able to sell just the bases to stained glass stores at wholesale or locally with consignment. It was win/win, they had a product they could sell that required the buyer to buy more glass and other products to complete them. I saved (and made) money, time, and a lot of headaches not dealing with the individual sales.

So it may be worth taking a look at your business model. Would you make any less money working from a wholesale perspective and selling multiple orders and/or parts to other retailers?
 
I have about decided to raise prices and lower shipping. If for no other reason than to make shipping look cheaper. I have been watching another discussion on another forum and it's pretty common gripe about shipping costs. So I think I will make them look cheaper. It will actually need to raise the total a little to make sure I am covered but at least shipping will look better.

I am really starting to understand $199 vs $200 now. Consumers are funny people.

Would you make any less money working from a wholesale perspective and selling multiple orders and/or parts to other retailers?

No such thing really. What I do is a specialized product and there is only one person that competes directly against me with the a very similar product. Only one I could wholesale to is myself. Not sure how that would work? :dunno: ;)
 
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People are so different you can't make everyone happy. I think it boils down to a percieved sense of value for the consumer, different people look at different things. I'm sure I have different criteria for different items too.

If you didnt' have anything else to go off of, which bandsaw would you think had better quality. A $250 bandsaw that has a $150 shipping cost, or a $400 band saw that ships free? Those marketing people can be very sneaky.
 
Jeff,
I know from experience since I'm a mailman. The easiest way is to contact the business office of the PO. They will come to your place & help you as much as they can. We really are the cheapest way to ship parcels & since the mail volume is down they have gone whole hog with shipping parcels especially business barcels.
 
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