It seems to me that some buyers reject businesses that charge a high "handling" fee as part of the shipping and handling. Are there studies or opinions about this? I'm considering charging a flat fee at my web store to make the shopping experience more consistent. Buyers can purchase heavier items with a "shipping discount" while lighter items would be to my advantage. I figure it will balance in the end.
Sun, that sounds like a good idea. Are you based in the U.S.? What I do is take advantage of the US post office as much as possible. I'll do only Fedex, or UPS if the customer requests it, or for some international shipments.
I save a lot in shipping and packaging by going with the post office. Sometime I will even ship first class for smaller orders. Believe it or not, I haven't had a single package lost.
>Loyalty Write them a note with the shipment and tell them that you appreciate their business.
i charge a flat fee for shipping, and ship using the post office, on large value orders i record the delivery, in 2 years i've had 3 packages go missing (possibly, according to the recipient anyway) france = 1, uk = 1, usa = 1
even at christmas the service is very good, i was shipping from the uk to usa - first class (airmail not priority) and getting 4 day delivery times.
if you are in the uk a good tip is to use "E" stamps as these don't have the price on them, so people who have "overpaid" using a flat rate system don't know.
Yes, I am in the U.S.a. Packages are primarily shipped USPS First Class or Priority, with the ocassional FedEx. Seems every buyer I talk with wants actual or discounting shipping, but that in turn could make you seem "less competitive". You still have to make profit which might require raising the item price.
As a consumer, I can tell you that s&h is a major point with me. I often postpone purchases waiting for someone to flinch and offer free freight... a practice I've followed long before the internet. I recently purchased 2 systems from Dell and 3 printers from Buy.com based on free/reduced freight promos. I calculate the bottom line, not the line-item price.