Home – New Forums Tell me straight… Online shopping postage costs

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  • #964571
    Eco Manifesto
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    Hello All,

    I need you to put on your online shopper/customer hats for a moment and give me your opinion regarding postage costs.

    As a consumer, when shopping online which postage option do you prefer? (ie. Options could be: 1. free postage! 2. flat rate $9 Oz wide 3. $5 local delivery and $9 other states 4. cost calculated by weight of product(s) 4. Other!

    Thanking you all in advance,
    Chrissy

    #1006617
    Past-Member
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    Depends whether its regular size parcels or large ones.
    Many purchases I make online are $16.50 flat rate. If I send anything up to 3kg I use Australia Post Express Post bags and bubble wrap and charge the same $16.50. The bonus is that the item gets to it’s destination quickly too that way with Express Post. Anything over 3kg, and strange sizes, needs to be per weight.

    #1006618
    MissieK
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    It really depends on your products. I once ordered something and it was a flat rate of over $10 for a small, light item that would fit in a normal envelope and only cost a couple of dollars to send. I went elsewhere!

    I generally charge what I pay at Australia Post, plus around 10% to cover the price of the envelope & packaging material.

    For some people, including postage is good, however for me, it doesn’t make too much difference, as a customer. I’ve also noticed some people including postage, but their prices are no different to buying things in the shops – worry they aren’t making any money in their business, especially if there isn’t a huge mark up on products.

    I hope this helps…

    Melissa

    #1006619
    Heidi Price
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    Eco Manifesto, post: 5943 wrote:
    I need you to put on your online shopper/customer hats for a moment

    Well Chrissy……

    Obviously in consumer mode I like free hehehe

    but otherwise I prefer to see the weight/size so I can check against Australia Post’s online calculator and see how much is being added on to the ‘real’ postage cost. Any more than a 15% markup to the postage and I’m going to checkout other sellers of the same item.

    Having said that, there are times when I will pay the postage no matter what if it is something I need ASAP or is unique/hard to find.

    Heidi

    #1006620
    ray_223
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    Hi Chrissy,

    I agree with all the other comments … the answer depends on your products and customers.

    If your products are competing with similar products that can be purchased locally then having free or small postage charges would seem to be sensible.
    If your product (or an alternate product) is difficult to source locally then charging extra for postage would seem natural.

    The comment I always hear from people about Ebay (most of whom don’t do any other online shopping) is that freight is the killer!
    EBay sounds like the best invention ever until you have to start paying for freight!

    I can’t remember if I have read a list of “the top annoyances of shopping online” or it’s just my imagination … but I believe shipping costs are the number 1 reason why people don’t buy online (probably followed closely by the perceived danger of fraud). I’d be interested what others thought about this?

    #1006621
    billfredtom
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    Are you serious? As a consumer, why wouldn’t I want it for free?

    #1006622
    ray_223
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    billfredtom, post: 5964 wrote:
    Are you serious? As a consumer, why wouldn’t I want it for free?

    When a business says “free freight” … it really means the cost of freight is built into the price.
    As an added benefit it also lets customers easily compare the web shop price with local prices.

    It’s a marketing tool – check out the number of times “free” and “new” are used in advertising!

    #1006623
    billfredtom
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    ray_223, post: 5965 wrote:
    When a business says “free freight” … it really means the cost of freight is built into the price.
    As an added benefit it also lets customers easily compare the web shop price with local prices.

    Agreed. Was just responding to the original question – “as a consumer”. :) As an online retailer – I would say be upfront about everything. Show your postage rate in the right places, have enticing postage free specials every now and then, and always give good and prompt service.

    #1006624
    Ric Willmot
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    Test & Measure.

    Rgds,
    Ric

    #1006625
    Eco Manifesto
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    Thank you everyone

    Cheers
    Chrissy

    #1006626
    divapromotions
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    I would prefer cost calculated by weight of products. Also, if people are shopping online, they know they need to pay freight costs. So saying that it’s free, the consumer automatically thinks it’s built into the price.
    Really – how can you have an online business selling stuff, and not charge postage?
    Be honest about your postage and do what works best. Try not to make a profit from your postage and your consumers will trust you.

    #1006627
    Eco Manifesto
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    I have postage calculated by weight (I charge only what Oz post would charge for delivery – no extra for packaging or for time taken etc) – the only reason I asked was to get a feel of consumers preference when shopping online and perhaps get an idea of what works best for the them! (it’s difficult to know whether they are getting to the checkout and finding the postage just too high, especially if they are buying several things, and they then would prefer a flat rate).

    For me its about what the online consumer prefers/wants (no point offering cheese if they want crackers!) I personally do not agree with the “free freight” IF the retailer is putting up the prices to cover the cost of freight (its not really “free” is it!) – consumers are savvy shoppers and I just want to give them the most fair, honest, cost effective option.

    I think you’re right – online shoppers know they have to pay for freight but want to pay the right amount, and they certainly don’t want to pay an excessive amount (whether its what Oz post would charge or not!).

    Cheers

    #1006628
    ray_223
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    divapromotions, post: 6110 wrote:
    I would prefer cost calculated by weight of products. Also, if people are shopping online, they know they need to pay freight costs. So saying that it’s free, the consumer automatically thinks it’s built into the price.

    So obviously customers use common sense when deciding what to purchase?
    So all of these:
    * 12 months interest free,
    * 2 for the price of 1,
    * Second pair of shoes 50% off
    * 11 coffee free
    don’t work? ;)

    Once again Ric said it best by simply saying “Test & Measure”, because “logic” and “selling” don’t really mix ;)

    #1006629
    mexham
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    As a consumer I’d definitely like free! It encourages me to buy instantly without having to hunt around searching for shipping prices, then deciding whether the purchase is now justified with the added cost of shipping.

    Sure free shipping is included into the cost of a product, but it narrows the amount of decision making steps it needs for a consumer to buy. ‘$20 including shipping, sweet, I’ll buy it.’
    ‘$15 oh yeah cool I’ll buy, oh another $5 for shipping, hmm not so sure, might have a look round somewhere else now..’

    I know from watching my friends shop online they get excited when they find a online store with free shipping, or clear cheap shipping ‘wow check this is only $10 shipping from the US!’

    I’ve also read a Uni paper on shopping cart abandoment rates, and it was saying that these rates are approx 95% with the majority >80% abandoning because there is no clear shipping charges shown so going through the cart process is the only or easiest way to find what this price is.

    #1006630
    SheInspires
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    As a consumer I get frustrated when the more I spend with a business the more they charge me for shipping. I prefer flat rate shipping charges.

    I have this for my jewellery business and find it works out fine.

    Some of the previous comments made the point of it depends on what you’re shipping and that’s completely right. I ship jewellery and earring stands so they have a fairly consistent price. Most people buy multiple pieces of jewellery so I’ve just made an average of the postage price for the orders and included the cost of packaging. I have insurance as extra.

    I hope this helps.

    Cheers,
    Belinda

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