Optimizing Shipping Cost in E-Commerce
Price sensitivity is one of the key factors that affect the buying decision of the clients. Buying goods on the Internet, customers do not face many other factors which are minor but in the circumstances of offline purchase may affect the final decision, like the behavior of salespeople, design, and decoration of the store. E-commerce can offer many advantages for their clients, like 24/7 reachability, easiness of purchase, time efficiency. But in reality, the only data we analyze while buying things online are the following: appearance and specifications of the product, price, and terms of shipping. So, as you can see, delivery, in general, plays a significant role in customer relations, and its quality may seriously affect the whole opinion about the seller. That’s why it’s been a real challenge for e-commerce companies: what to do to cut the shipping cost and make the process easy and quick.
The main question every online entrepreneur needs to analyze while calculating and optimizing the shipping costs are:
1. Shipping costs may vary
Every company that plans to set a sale for Black Friday wants to make their prices very attractive, as it’s time when all their competitors are going to do the same. E-commerce companies should pay attention to the fact that in high season the demand for shipping services rises, but the capacities of the shipping companies nearly remain the same. That’s why they provide extra fees or can’t keep the terms of delivery stable in the means of time. To minimize the risks, online shops may divide the price into two parts: the price of the product itself and the one of delivery.
So here, in this situation, the terms of shipping go as additional service, and the client can easily make a buying decision on the base of the price you offer, and possible extra fees for shipping that might occur during the holiday time won’t affect the opportunities of the seller.
Continue reading the originally published article at