Should you combine the shipping price with the item price?
This question was proposed to us by “Life in the Moment” and I think we could all benefit from discussing the pros and cons.
Truthfully speaking, in this day and age with the giant Amazon, we are all programmed to LOVE free shipping and hate having to occasionally pay for it. What’s interesting about Amazon is that those who enjoy free shipping are also the ones that pay for Prime Membership...which isn’t cheap. So “technically” we are still “paying” for shipping, just in a different way.
The first thing that came to mind is the idea that we need to banish thoughts of “is this charitable?” or “am I being sneaky for doing this?” We ARE good people and want to do right by our customers, but also need to make a living and provide for ourselves and families. So the fact that you are even considering this question means you are on the right page. It is NOT sneaky for figuring out a better shipping + pricing strategy, it is business smarts. Those who purchase from you will understand because they understand you are offering a good and cannot be losing money on every purchase.
Check out this article that I found. I feel that it really outlines the different strategies really well, and is absolutely worth a read.
To give you a quick synopsis: They encourage including shipping in your price, but they also offer ways to do that...which is awesome! It talks about how it’s “not a one size fits all” scenario when it comes to shipping because everyone’s goals are different. Some of the key take-aways I found helpful were:
If you feel uncomfortable putting the shipping price within the item price, offer free shipping if the customer reaches a certain shopping cart total. This can increase loyalty to some of your best customers because they will enjoy the perks of shopping heavily with you and most likely already have a large enough cart total to gain access to the free shipping. This can also give new shoppers the opportunity to think of others they could buy for to make their cart hit the mark for free shipping. But the best part is that, if someone doesn’t care about the free shipping incentive, then it’s no loss to them!
Check out the standard rates of shipping and bundle that into the product price. This is nice because it makes it simple for your customers and what they see is what they get. There would be no “surprise” when they get to checkout and shipping increases the price of their product by $15. The only downside is the idea that shipping around the world differs, so in some scenarios you might be out money, but this is why doing research first and setting a decent price in place is beneficial.
The idea of offering free shipping to your “higher priced” items and seeing it as a “thank you” for supporting your business so well.
These are just a few takeaways I gleaned from the article, but please feel free to share your own thoughts! There’s no right or wrong answer to this question, but just remember that it is not selfish to include shipping within the price of the product. You own a business and you deserve to make it simple on yourself, walk away with making money to provide for yourself and family.
Until next time.
Love, LHC