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  • #971113
    Nisha
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    • Total posts: 17
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    Hi There,
    I just wanted to get your opinions/advice as to the best way to price the postage on my online store. http://www.whitelotushealth.com.au

    I am using the e-commerce package designed by the web design company I am using, which I’m really happy with, the only thing is that I’m a bit stuck on the postage issue, ie how much do I charge for postage?

    Using the e-commerce module, I can integrate with Australia post, but it works out postage based on weight/dimensions of each item, not the total size/weight of the box being sent, so is therefore too expensive, and would put customers off. The other option I have is doing a flet fee, say $10 any size, anywhere is Australia, which is what some of my competitors do, but if someone only wanted one or two products, would this put them off?

    The other option is a set price per cart, say $5, with an additional amount per item, say $2 per item, which is what I am using at the moment.

    As soon as I am posting 20 parcels a week, I can use e-parcel, which is much cheaper, but in the meantime, I need to find a solution that works and is not going to be too expensive for the customer. I’ve looked at the express bags, and they would be ok for some products but I have glass jars etc that need to go in a box.

    Any advice would be much appreciated!!
    Thanks,
    Nisha

    #1047769
    John Debrincat
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    • Total posts: 963
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    Hello Nisha,

    Shipping is one of the key differentiators and also the highest ranked reason for shopping cart abandonment. I contributed a couple of articles to Power Retail one on Pricing Strategy and the other on Shipping Providers. Hope that they can help you a little.

    Best regards

    John

    #1047770
    SuzsSpace
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    • Total posts: 692
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    I post by weight with three postage categories. Up to 1kg is $6, up to 20kg is $10 and then USA buyers get to add the extra $9 postage fee for parcels over 453gm.

    #1047771
    createdevelop
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    • Total posts: 171
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    The easiest thing you can do is go for a flat fee, but you might run into trouble shipping to outback WA.

    We have actually used a variety of situations, and have found mostly, that it doesn’t matter too much what the postage is, as long as it is fair and displayed up front and early in the buying process.

    #1047772
    WhereAreThey
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    • Total posts: 51
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    John Debrincat, post: 58656 wrote:
    Hello Nisha,

    Shipping is one of the key differentiators and also the highest ranked reason for shopping cart abandonment. I contributed a couple of articles to Power Retail one on Pricing Strategy and the other on Shipping Providers. Hope that they can help you a little.

    Best regards

    John
    Hi John,

    I took a look at your article and am a bit confused as to your stats quoted

    Quote:
    * Cost of shipping – over 70%
    * Comparing total price – over 60%
    * Total cost of items is too high – over 40%

    This to me appears to be 170% please excuse me if I have missed something. Was this a multiple choice questionnaire/Survey ?

    #1047773
    John Debrincat
    Member
    • Total posts: 963
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    WhereAreThey, post: 58924 wrote:
    Hi John,

    I took a look at your article and am a bit confused as to your stats quoted

    This to me appears to be 170% please excuse me if I have missed something. Was this a multiple choice questionnaire/Survey ?

    The survey was done by an agency the questioned around 500 online stores and asked them to rank the issues for basket abandonment. The the percentages relate to the percentage of the store that ranked each specific reason as 1st, 2nd, 3rd etc. So no the percentages will not add up to 100%.

    That is 70% of the online stores ranked shipping as the main basket abandonment reason or issue.

    Do a bit of a Google search and you will find a number of similar surveys with the same result.

    Regards

    John

    #1047774
    King
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    • Total posts: 2,212
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    I agree with the previous poster in that stating the shipping early is best, not waiting till they are 70% through the cart process.

    On shipping, can you work it on a % of basket value?

    #1047775
    John Debrincat
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    King, post: 58976 wrote:
    On shipping, can you work it on a % of basket value?

    Hello King, short answer is yes you can but you need to be very careful. If you are going to do it that way it would be better to make shipping cost part of the price and then promote as fee shipping. Price comparison is generally on total basket price and not on the individual components. So if it was based on a percentage basket value and the total basket price was OK then fine. It would be potentially an issue for international shipping.

    Regards

    John

    #1047776
    Spiffy Brian
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    • Total posts: 25
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    Hi Nisha,

    Having written the Australia Post shipping calculator for Spiffy Stores, I guess I’m in a reasonable position to talk about shipping calculations.

    I don’t know exactly what software you are using, but I know that the Australia Post calculator will use the weight or the cubic volume, whichever is greater in its calculation.

    The way we approach it is that all items in the cart are added up and the total weight is submitted to the calculator as a single package with minimum dimensions so we always get a shipping calculation based on the total weight of all the items the customer is purchasing.

    This is fine in most cases, but sometimes our customers have bulky items, so they have a way of configuring such items as “bulky” and providing the dimensions of these items.

    When the customer orders bulky items, all the items in the cart are split up into non-bulky items, with the shipping being calculated as the total weight of the item, and all the builky items being treated as separate parcels using either the weight or the dimensions of the item as appropriate. Finally all the shipping esitmates from Australia Post are added up and that’s the final amount that gets presented to the customer.

    We also have additional configuration options that allow the store owner to add additional handling days onto the delivery estimate from Australia Post, and they can also add additional handling fees as a flat amount or as a percentage of the total shipping rate.

    All in all, this seems to deal with the vexing problem of shipping rate calculations.

    Perhaps you can use this approach with the Australia Post shipping calculator you are currently using?

    #1047777
    Nisha
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    • Total posts: 17
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    Thanks everyone for your feedback! I agree John, I need to have shipping that is fair and reasonable, as I too will abandon cart if I think shipping is overpriced. I was leaning towards flat fee $10, but I sell such a range of sizes in products, that it would be good if someone ordered 5 or 6 items, but if they only ordered an eyeshdow, it would be over the top.
    If I integrate with Australia Post, which is what I can do through my website, it calculates everything individually and then adds it all up for total shipping cost. Yet if I put all the items in a box and put in the dimensions and weight of the box, on the Auspost website, it works out much cheaper. I’ve spoken to my website account manager, who is going to get it looked at by the design team. Spiffy, it doesn’t look like the auspost calculator we use does what your does, otherwise the shipping would be much cheaper. It treats each item as an individual item.
    At the moment, I am charging $5.00 plus $1.00 per item for shipping, and I’ll see how that goes. Once I start getting a few sales, I can see whether I need to change the pricing.

    #1047778
    King
    Member
    • Total posts: 2,212
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    John Debrincat, post: 58984 wrote:
    Hello King, short answer is yes you can but you need to be very careful. If you are going to do it that way it would be better to make shipping cost part of the price and then promote as fee shipping. Price comparison is generally on total basket price and not on the individual components. So if it was based on a percentage basket value and the total basket price was OK then fine. It would be potentially an issue for international shipping.

    Regards

    John

    Yes but this way the costs are upfront as they are added to the basket, so everything is still transparent and the true price is revealed before people get to step three of the checkout and get a surprise on shipping.
    International could be handled by a country dropdown or at entry (like Strawberrynet does) so their shipping is on a unique percentage.

    #1047779
    Everlasting
    Member
    • Total posts: 2
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    Nisha , post: 58499 wrote:
    Hi There,
    I just wanted to get your opinions/advice as to the best way to price the postage on my online store. http://www.whitelotushealth.com.au

    I am using the e-commerce package designed by the web design company I am using, which I’m really happy with, the only thing is that I’m a bit stuck on the postage issue, ie how much do I charge for postage?

    Using the e-commerce module, I can integrate with Australia post, but it works out postage based on weight/dimensions of each item, not the total size/weight of the box being sent, so is therefore too expensive, and would put customers off. The other option I have is doing a flet fee, say $10 any size, anywhere is Australia, which is what some of my competitors do, but if someone only wanted one or two products, would this put them off?

    The other option is a set price per cart, say $5, with an additional amount per item, say $2 per item, which is what I am using at the moment.

    As soon as I am posting 20 parcels a week, I can use e-parcel, which is much cheaper, but in the meantime, I need to find a solution that works and is not going to be too expensive for the customer. I’ve looked at the express bags, and they would be ok for some products but I have glass jars etc that need to go in a box.

    Any advice would be much appreciated!!
    Thanks,
    Nisha

    Dear Nisha,
    Postage can be quite tricky. I sell books from my website http://www.everlastingrecord.com which can get very expensive as the weight of my items exceed 3kg. My advice to you would be to use a combination of Australia post and other delivery services like TNT or Star track express. I wouldn’t call them but go in and actually speak to someone and take in some of your most popular products. They will make some great suggestions to best move your product. To be honest I would rather pay a little extra in freight to ensure that my product got to my customer at lightning speed. Customers hate waiting for products and will pay a couple dollars more for this service.

    Have you also though about how you are sending your items? I would also suggest including a gift of some sort – you could include a discount card or nice gift wrapping. Small things count and its these small differences that will encourage your customers to repeat purchase.

    Regards

    Matt Negline
    http://www.everlastingrecord.com

    #1047780
    AlleD
    Member
    • Total posts: 21
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    Hi John

    I read your article and just wanted to say thanks. It has given me much to think about. I am hoping to launch our online store early 2011 and as a avid internet shopper myself, high postage costs are definately a turn-off. I am thinking of free postage with the cost built into the product. I will be selling clothes so it is easier to add on postage to the item to cover shipping.

    Thanks Again

    AlleD

    #1047781
    John Debrincat
    Member
    • Total posts: 963
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    AlleD, post: 59814 wrote:
    Hi John

    I read your article and just wanted to say thanks.

    AlleD

    Hi AlleD,

    Your welcome and glad you got something from it. Its a good time to be selling online and free postage works if you can manage the costs.

    Merry Christmas

    John

    #1047782
    Nisha
    Member
    • Total posts: 17
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    Thanks Matt, That’s really useful and I shall look into some courier options as well. At the moment I send some free samples with my packages but am looking at other stuff too.

    Really appreciate everyone’s feedback, thanks.

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