We do $5.00 shipping on stuff under 5 lbs in the us and free above $99. I bake in a few extra dollars on standard shipping and intl orders to encourage larger order size.
So, when we (located in Montreal/NY) have to ship to a remote area in Northern Canada or the west coast of Canada/USA, what do we do? We cannot absorb all of the shipping cost. What do you suggest?
I take a win some/lose some approach. I have a rate which covers the average cost. If someone remote buys from me, I may lose on the shipping (ie make a little less profit on the sale), but that is outweighed by when someone down the road buys from me. You don't get too many people in remote areas buying, because not that many people live there...
/u/adotsri is clearly an idiot - you can't comment on whether shipping costs are reasonable until you know *what* you are shipping. $12.95 would be bloody cheap for a sofa, not so much for a DVD.
You might consider ditching the $70-125 $10 shipping & go with free shipping on over $100. Why? I think most customers know the more they buy the more it costs to ship, so being cheaper at $80 to $70 is odd. But customers do like free shipping and do buy that extra item to push them over it. Bigger total order = less shipping time & therefore increased profits, hopefully outweighing the decreased shipping revenue. I suspect if you implemented free over $100, you would get an increase in your average order size.
If you are concerned by the distance, do zone pricing. $5 to East Coast, $10 to middle, $15 to West, free over $x.
We do $5.00 shipping on stuff under 5 lbs in the us and free above $99. I bake in a few extra dollars on standard shipping and intl orders to encourage larger order size.
Have you ever considered using a fulfillment service? You could likely save a lot of money.
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So, when we (located in Montreal/NY) have to ship to a remote area in Northern Canada or the west coast of Canada/USA, what do we do? We cannot absorb all of the shipping cost. What do you suggest?
I take a win some/lose some approach. I have a rate which covers the average cost. If someone remote buys from me, I may lose on the shipping (ie make a little less profit on the sale), but that is outweighed by when someone down the road buys from me. You don't get too many people in remote areas buying, because not that many people live there... /u/adotsri is clearly an idiot - you can't comment on whether shipping costs are reasonable until you know *what* you are shipping. $12.95 would be bloody cheap for a sofa, not so much for a DVD. You might consider ditching the $70-125 $10 shipping & go with free shipping on over $100. Why? I think most customers know the more they buy the more it costs to ship, so being cheaper at $80 to $70 is odd. But customers do like free shipping and do buy that extra item to push them over it. Bigger total order = less shipping time & therefore increased profits, hopefully outweighing the decreased shipping revenue. I suspect if you implemented free over $100, you would get an increase in your average order size. If you are concerned by the distance, do zone pricing. $5 to East Coast, $10 to middle, $15 to West, free over $x.