6 Delivery/Shipping Pricing Models to Consider For Your Online Store

6 Delivery/Shipping Pricing Models to Consider For Your Online Store: So, your customers visit your online store, browse through your products, add desired products to the cart, and are ready to checkout and make payment using any of the available payment options.

One of the major turn-offs at this point could be the delivery options on your website. Customers may “abandon their carts” if their preferred delivery option(s) are not available, or if the options are too expensive or stressful.

In this article, we share 6 delivery or shipping pricing options to consider for your online store.

1. Pickup From Your Store

With an option to pick ordered products up from your store, your customers no longer have to wait for the orders to arrive in a few days to start using it.  They can pick up their order from the store at their convenience. They will no longer have to pay the high shipping charges associated with same-day shipping or otherwise.

Having a ‘pick up from store’ option on your website also gives you an opportunity to cross-sell and up-sell products to these customers when they come to pick up their order.

2. Flat Rate

Offering a flat shipping rate implies charging every customer the same amount for shipping, regardless of their orders and locations. This encourages them to purchase more products since a fixed cost is charged regardless of how many products they order.

However, ensure flat rate shipping is profitable for your business, especially if you sell products that vary greatly in size and weight.

3. Free Delivery

This is a good way to get your customer’s attention. A free delivery option can increases sales. Customers order for many products since the delivery of their orders is FREE- No Shipping Rate Required!

Free Delivery also makes your customers become loyal to your website. They come back to buy more and also refer others to your website.

Another approach to free delivery is to tie this to a specific order value, such as “Free Delivery for orders N50,000 and above”.

4. Fixed Cost Per Location

This is the on of the most commonly used shipping pricing options, where delivery rate is calculated solely based on the customer’s location.

Examples:

  • N1,500 within Abuja
  • N2,500 to Lagos

5. Weight-Based Shipping

This is the default pricing method used by most courier services. The cost of delivery depends on both the weight of the order, and the delivery location.

To implement this method, you need to input weights of all your products and configure delivery cost for each weight range.

6. Per Item/Product Shipping

This option isn’t popular. It involves calculating delivery cost based on the number of products. This approach works best for shipping large and bulky items.

Conclusion

The pricing model you use for delivery would ultimately depend on the nature of your business. It is important to consider these options critically, as it plays a major role in the profitability of your online business.

Are you looking to start, expand or grow your e-commerce business? Get a Free eCommerce Consultation today.

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