Estimate Cost For Your Shipment

Estimate Cost For Your Shipment

This one’s pretty straightforward: the bigger the package, the more it’s going to cost to ship. Most shipping carriers use a pricing method known as dimensional weight to calculate the rates they offer. This is calculated by multiplying the length, height, and the width of the package.

 

The Importance of Calculating Shipping Costs

An ecommerce business owner needs to know exactly how much they are going to incur as shipping costs on every sale, for a multitude of reasons. For starters, it’s going to have a direct impact on your profitability. If you don’t know how much you are paying for shipping to a customer, you won’t be able to get a firm handle on your profits.

The second, and more important reason, is so that you can provide your customers with an accurate estimate. Depending upon the size of the package and the type of goods being shipped, the costs are likely to vary. You need to make sure that accurate information is provided to a customer on the checkout page. If customers find out that they were quoted another amount and charged another, it could wreak havoc on your company’s goodwill.

There’s no denying that having a strong ecommerce shipping policy could streamline operations and make matters much simpler for your business. Customers seriously care about the cost of shipping, and they don’t want to pay a cent more than they have to. In fact, shipping costs are widely regarded as the number one pet peeve amongst potential customers.

The third reason is so that you can calculate the threshold at which a customer qualifies for free shipping. If you don’t know your margins and shipping costs, you won’t be able to come up with an accurate figure.

Additionally, transparency is key if you want to make a sale and increase brand loyalty. Your customers need to know all of the costs that they will be incurring so they don’t ditch your store and buy from another. Shipping cost hassles are regarded as the number one reason for shopping cart abandonment. There are many ways to reduce abandonment, and managing shipping costs is one of them. Here are a few statistics to give you a better idea:

  • 45% of shoppers abandoned their cart when they realized that their order value failed to qualify for free shipping
  • 52% of shoppers added more items to their cart because they wanted to qualify for free shipping
  • 56% of shoppers were willing to pay for shipping when they thought their order was too good of a bargain to drop based solely on shipping costs

The bottom line is this: shipping costs matter, and you need to stay on top of them. If you know just how much leeway you can give to a customer, you can set your margins correctly, which will allow you to make profits even when offering free shipping.

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Estimate Cost For Your Shipment

Delivery Services

NEXT DAY
EXPRESS

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SAME DAY EXPRESS

Nam orci sagittis suscipit

REGULAR
EXPRESS

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CARGO
EXPRESS

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