Setting Your Shipping Policy and Rates
Here are some basic guidelines to help you get started setting your shipping strategy and rates.
Basic Philosophy
Most ecommerce sellers aren’t trying to make money on their shipping, just cover the costs so they break even overall. The numbers vary depending on your product market. Ship Central can help you establish a starting point for you shipping rates, and you can monitor it over time as the actual costs and market dictate.
Your Customers Can Help You
How your customers buy, the shipping options they request, and the level of urgency customers want to receive your product can help you know what options to offer.
Basic Options
Standard Shipping
Most sellers offer “Standard Shipping” and leave it at that
- For US shipments there’s a most cost effective “standard” for each size and weight of shipment
- For International shipments there are “standard” methods which are most cost effective.
Expedited Shipping
There are expedited options for both U.S. and International shipments. Each carries the respective price points.
Options To Consider
U.S. Domestic
- 3-5 days for shipments under 1 pound (Standard)
- 2-3 days (Expedited; “Standard” over 1 pound)
- 2 days
- 1-2 days
- 1 day
International
Available options and performance varies per country
- 7-16 days (“Standard” under 4.4 pounds)
- 4-12 days (Expedited; “Standard” over 4.4 pounds)
- 2-3 days
Some Ecommerce Sellers Offer “Free Shipping“
Offering free shipping can help increase conversion rates. As you know, shipping is never “free.” To make it work, here are some considerations:
- Increase product prices to cover costs for shipping (customer pays).
- You pay the full price of shipping out of your margins (you pay).
- Increase prices of products slightly to cover partial costs of shipping (you and your customer pays).
- Offer a discount code to certain customers for free shipping.
You can also offer free shipping on a minimum order total. Having a larger average order size can help offset the cost of the shipping you pay out of your margins.
Recommendations:
U.S. Domestic Shipments
- “U.S. Domestic Standard Shipping”
- “U.S. Domestic Expedited Shipping” (if you choose)
*3-5 days for shipments under 1 pound (Standard)
*2-3 days (Expedited; “Standard” over 1 pound)
International Shipments
Available options and performance varies per country
- “International Standard Shipping”
- “International Expedited Shipping” (if you choose)
*7-16 days (“Standard” under 4.4 pounds)
*4-12 days (Expedited; “Standard” over 4.4 pounds)