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

Shipping Cost in E-Commerce

--

--

--

AIST — a software agency based in Yerevan, Armenia. Since 2016 we provide web and app development and design services. https://aist.global/en

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Best digital marketing strategies for manufacturing companies

4 Steps to Becoming a More Ethical Brand

Here’s What Happened After They Told Me I Couldn’t Write

Free Advertising Offer Through Adwerx Has Been Extended To January 31

Why Branding is Important for SEO Growth?

SEO & Branding

4 tips for generating website traffic with social media marketing | spacehuntr

JSDIGITAL - JetStream’s new China “brand building” agency division.

What’s that smell? It’s madness…

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
AIST Global

AIST Global

AIST — a software agency based in Yerevan, Armenia. Since 2016 we provide web and app development and design services. https://aist.global/en

More from Medium

2022 trends: technology to the rescue

New Hire Checklist Template

New Hire Checklist Template

Welcome: A Deep Dive into Shannon’s Virtual Life

When will banks not need banking apps? (Part 2)