If you’re in the business of the logistics, your two top priorities should be increasing profits and improving customer experience. However, that is much easier said than done. Some companies never find that balance and the ones that do grow to be major players in the world of B-to-C shipping. Multiple factors come into play when developing a plan on how to optimize profits from an individual shipment and policies that are specific to the type of business you’re running.
Customers love to see “free shipping” at the checkout screen. IF you ship often and in large quantities, though, this could cause your business to lose a lot of money, so strict shipping schedules have to be set if you are to offer that kind of service. Also, packing methods play a larger role as well. Offering different shipping options becomes more valuable when free shipping is the standard – it’s also a great promotional tool for trying to move certain products. Customers who want their package quicker will often be willing to pay an elevated cost for shipping.
Including Shipping Cost with Cost of Item
Perception is reality for shoppers and if you tack on a bit of the shipping cost to your product and provide free shipping, it will allow your company to make some of the money back on each order. However, customers can easily compare your prices with other companies selling the same or similar products. This strategy can be useful, but it can also hurt your business if you don’t consider your competition’s prices.
Providing Low Prices and Charging Shipping Costs
By providing low, competitive prices, customers will feel more comfortable paying for the shipping costs associated with your product because they know they are getting a great deal for the item. It may even allow you to raise your prices in the future once customers become loyal to the brand or product. Be strategic with your pricing and use it as a tool to encourage customers to make the leap into the decision-making stage that results in a purchase.
Standardizing Shipping Prices
Find a price point for shipping rates that will make your customers happy and prevent your business from losing money on shipping costs. his often requires some trial and error to figure out exactly what works, but it’s well worth the invested time – especially if you have customers who are willing to pay shipping costs and feel comfortable knowing that the cost to them will always be the same.
Offering Live Tracking Tools
Care for your customers. Providing customers with live tracking information so that they always know exactly where their packages are will make them happy and help to increase profits. Go the extra mile and add anti-theft technologies to expensive packages that may be easily stolen and customers will not only feel secure, but your company will have a competitive advantage over other companies that don’t provide the same personal touch.