Thursday, January 22, 2015

Shipping charges

      Free daily tips, information, advice and ideas
      to help you better manage your small business

     But wait! We'll double the offer! Shipping is free!

     We've all heard the pitch on cable for kitchen items and cleaning products. It must work, or these advertisements would not be so plentiful.

     There are several clues here for small business. Take the free shipping for example. 

     People hate it when you low-ball the price of your product on your website, then tack on shipping charges when they go to checkout. That's frequently when they clickout and checkout themselves. How many abandoned shopping carts have you had?

      The thing that cable advertisers have learned is simple. Include shipping charges in the price of the product and emphasize that shipping is free.

     Think about it. You've attracted customers with your product. Now you've lost them for the sake of a shipping charge. 

     Sometimes it can be expected and appropriate. Other times not so much. Many don't seem to mind a shipping charge. Others do. But you don't want to lose the sale. 

     Example: Wendy is an artist who hand-paints silk scarves with colorful designs. She sells at high end gift shops, shows, and through her website. On her website, the scarves are priced at $75 and higher, and she adds a shipping charge to orders. She decided to make changes on her website--all orders gift-wrapped, base price raised to $100 and shipping charge eliminated. She realized more sales.

     Example: John repairs computers and other electronic devices in his small local shop. He also sells parts, software, and games through his website. This has attracted customers from distant places. His customers don't seem to mind shipping charges which can vary according to the size of the order and type of shipping preferred by the customer. 

     When orders are big, bulky and vary by size, customers don't seem to care much about shipping charges. But for small, light weight products, they do. 

     Over the years, I've learned a lot from watching the ads on television. Some are in-your-face. With others, it's hard to understand what's being promoted. But that shipping charge is on everyone's mind.  


No comments:

Post a Comment