What’s the most common reason for online shoppers abandoning their purchase from eCommerce stores at checkout? That’s right, shipping costs. New research has shown that 28% of customers have cancelled a purchase when presented with unexpected shipping costs.
So, what can eCommerce stores do to solve this problem? Read on to find out!
What is Flat Rate Shipping?
Put simply, flat rate shipping is a simplified shipping plan where all packages regardless of size, weight, or destination cost the same to ship. This takes away the need for awkward and time-consuming calculations to be made for each package. Hence, it can be a very popular option with online shoppers and eCommerce stores!
Knowing that a large number of customers abandon their orders after seeing high shipping costs, flat rate shipping could be the way to keep those customers and orders. If fewer orders are abandoned, and less time is spent calculating shipping costs, that means more orders, more time, and – best of all – more money!
How to Set Your Own Flat Rate Shipping Price
While the basic idea of flat rate shipping is that which is found above, that doesn’t mean there isn’t room for variation. Of course, you can offer one rate for all packages, but it might make more sense to have a more individualized plan.
For example, the weight of the package might be removed from shipping estimates but the size of the package isn’t. Using this plan will take into account the cost of the space the packages take up in the delivery vehicles. This cuts time and costs on the eCommerce store’s behalf, while still protecting profits.
Another option is to use a flat rate shipping price for same-day delivery. This is a hugely attractive option for online shoppers and will boost sales!
As for how to set the rate itself? Simply take your average monthly shipping costs and divide it by your average number of monthly orders. Round it up to the nearest dollar and that’s your price.
What’s Your Best Shipping Option?
Unsurprisingly, there are many factors that decide this. From who fulfills the orders (internal or external), what the products are, and how many orders are received. Even the size of your company makes a difference! The best way to find out which shipping services are best for you is to gather your shipping information and talk to the experts.
Update Your eCommerce Stores to Flat Rate Shipping Today!
When it comes to shipping, eCommerce stores have several options depending on their needs. The key is to find the combination of encouraging customers to place that order while maintaining break-even shipping costs.
If you’re interested in learning more about how flat rate shipping could benefit your company, get in touch now!