Shipping charges - Your opinion desired!
07-15-2010, 04:33 PM
#1
Super Member
Thread Starter
Join Date: Jun 2010
Location: Western Nevada
Posts: 2,520
OK, so we all know that there's no such thing as a free lunch, right?
Background: There are several ways to charge for shipping when you're operating an online store.
1. Weight and distance-based shipping, where you charge everyone actual shipping charges. This means you have to overestimate a lot of orders and end up adjusting charges down when you ship, because you have to account for packaging weights, which vary based on the amount of product ordered. Stores that do this tend to have higher free-shipping limits, but small orders have very low shipping charges for the customer.
2. Flat rate shipping, where you charge shipping according to the amount purchased. Example: 0-10 dollars = $3.95 for shipping, 10-20, $4.95, etc. This is more predictable for the customer and you probably lose fewer orders due to high shipping quotes for first-time customers. Stores that do this also tend to have lower free-shipping limits. The little secret is that the larger, free shipping orders are being subsidized by the masses of smaller orders that are being overcharged for shipping. It's all in the math, and believe me, everyone who is shipping product looks at the math and analyzes their order stream when setting their shipping policies.
So, my questions, for you online fabric shoppers are:
a. Do lower free shipping limits entice you to buy more, or less?
b. Is predictability of shipping costs in your ordering important to you, or would you rather be surprised when your shipping cost is lower than quoted?
c. Do you walk away from an order if shipping costs are quoted too high, or do you take the time to check the store's shipping policy?
d. Does having a lower free shipping limit compensate you for paying too much for shipping on smaller orders?
I have a lot more questions, but these are probably enough for one post.
Thanks in advance for your help in my research!
Background: There are several ways to charge for shipping when you're operating an online store.
1. Weight and distance-based shipping, where you charge everyone actual shipping charges. This means you have to overestimate a lot of orders and end up adjusting charges down when you ship, because you have to account for packaging weights, which vary based on the amount of product ordered. Stores that do this tend to have higher free-shipping limits, but small orders have very low shipping charges for the customer.
2. Flat rate shipping, where you charge shipping according to the amount purchased. Example: 0-10 dollars = $3.95 for shipping, 10-20, $4.95, etc. This is more predictable for the customer and you probably lose fewer orders due to high shipping quotes for first-time customers. Stores that do this also tend to have lower free-shipping limits. The little secret is that the larger, free shipping orders are being subsidized by the masses of smaller orders that are being overcharged for shipping. It's all in the math, and believe me, everyone who is shipping product looks at the math and analyzes their order stream when setting their shipping policies.
So, my questions, for you online fabric shoppers are:
a. Do lower free shipping limits entice you to buy more, or less?
b. Is predictability of shipping costs in your ordering important to you, or would you rather be surprised when your shipping cost is lower than quoted?
c. Do you walk away from an order if shipping costs are quoted too high, or do you take the time to check the store's shipping policy?
d. Does having a lower free shipping limit compensate you for paying too much for shipping on smaller orders?
I have a lot more questions, but these are probably enough for one post.
Thanks in advance for your help in my research!
07-15-2010, 04:41 PM
#3
Power Poster
Join Date: Oct 2009
Location: Idaho
Posts: 11,375
I usually wait until stores have specials running with free shipping. For example I just made a purchase from Fabric.com with free shipping over 35 dollars. I only purchased fabrics that were on sale and I got a lot for my money.
07-15-2010, 04:48 PM
#7
Super Member
Join Date: May 2009
Location: Central PA
Posts: 5,573
Originally Posted by mzsooz
I can't afford to place a large order. Therefore, I look for an online store that has the lowest shipping price available for the smaller orders. (I never order more than $20 at a time.)
Hope this helps!
Hope this helps!
07-15-2010, 04:53 PM
#8
Banned
Join Date: Oct 2009
Location: Bikini Bottom
Posts: 5,652
This is kind of a double edge sword especially with me refurbishing/restoring vintage machines. Everyone digs the free shipping but on something that big and heavy its impossible unless I go up on my fees.
I can hit the shipping within a couple of dollars no matter what part of the world your in because I have shipped SO many machines!! I personally do not mind paying the shipping, but its those folks that sell low and charge astronomical shipping rates to make up for the difference that I can not stand. You know the "Buy it Now" for .99 and pay $50 shipping and handling. :roll:
But if you ship enough and know about the approximate weight of things then you can hit it pretty close to actual shipping cost.
Billy
I can hit the shipping within a couple of dollars no matter what part of the world your in because I have shipped SO many machines!! I personally do not mind paying the shipping, but its those folks that sell low and charge astronomical shipping rates to make up for the difference that I can not stand. You know the "Buy it Now" for .99 and pay $50 shipping and handling. :roll:
But if you ship enough and know about the approximate weight of things then you can hit it pretty close to actual shipping cost.
Billy
07-15-2010, 04:55 PM
#9
Super Member
Join Date: May 2010
Location: Northwest Georgia
Posts: 3,272
a. Do lower free shipping limits entice you to buy more, or less?
It depends on the value I'm getting on the merchandise. If I'm getting a really good deal, I'll load up my shopping cart.
b. Is predictability of shipping costs in your ordering important to you, or would you rather be surprised when your shipping cost is lower than quoted?
I want to know the shipping charge upfront if it's a company I've never bought from before. If it's a company I'm familiar with, and trust to be fair, I'm okay with not knowing the exact shipping charge ahead of time.
c. Do you walk away from an order if shipping costs are quoted too high, or do you take the time to check the store's shipping policy?
Yes to both.
d. Does having a lower free shipping limit compensate you for paying too much for shipping on smaller orders?
It really just depends on the total for the order. All other things being equal, I'll buy from the company who can get the items to my door for the lowest total cost, regardless of how the cost is broken down.
I love shopping for deals! It's fun to see just how inexpensively stuff can be bought. :thumbup:
It depends on the value I'm getting on the merchandise. If I'm getting a really good deal, I'll load up my shopping cart.
b. Is predictability of shipping costs in your ordering important to you, or would you rather be surprised when your shipping cost is lower than quoted?
I want to know the shipping charge upfront if it's a company I've never bought from before. If it's a company I'm familiar with, and trust to be fair, I'm okay with not knowing the exact shipping charge ahead of time.
c. Do you walk away from an order if shipping costs are quoted too high, or do you take the time to check the store's shipping policy?
Yes to both.
d. Does having a lower free shipping limit compensate you for paying too much for shipping on smaller orders?
It really just depends on the total for the order. All other things being equal, I'll buy from the company who can get the items to my door for the lowest total cost, regardless of how the cost is broken down.
I love shopping for deals! It's fun to see just how inexpensively stuff can be bought. :thumbup:
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