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Choice #1: Postage revenue driven (level fee postage)

This is an exceptionally controversial practice and one that may get you into high temp water with frustrated customers. Some online business sellers choose to sell their items at or under cost price and make up their benefits with inflated level fee postage costs.

This is generally a strategy just used by very high-volume sellers of ease items. However, it comes with a noteworthy danger of alienating your customers.

On the off chance that you pursue this strategy, remember that 56 percent of online customers surrender their shopping baskets when they encounter unexpected expenses. So, expect high shopping basket abandonment rates.

A better strategy is to keep your level fee postage rates reasonable with a 10 percent overestimation to cover you against fluctuating postage costs. This may lead to a little benefit in the event that you use a delivery aggregator to ensure you’re getting the best deal on every item you send.

Priceline, for example, offers a level fee postage of $9.95 on orders under $100 inside Australia, with an express alternative for $14.95.

Alternative #2: Postage as a misfortune leader (free postage)


Sometimes the best method to make money is to spend money. It might sound counter-intuitive, yet losing money on postage can really help you to increase overall benefits.

For example, offering a free delivering advancement or free sending on higher value orders that you cover out of your net revenue can pull in new customers and lead to an overall sales help. For example, Myer offers free dispatching for orders of $100 or more as a component of their eCommerce development strategy.

“This is one step towards offering consumers more convenience,” Myer spokesperson Steven Carey told Choice.com.au. “We’ve recently seen that when free sending is offered in the online model, businesses develop by five to 10 times, so we need to see that in our business.”

Alternative #3: Postage to cover costs (variable-rate postage)


Variable-rate postage permits eCommerce businesses to pass delivery costs onto the customer on a per-sale premise. This is often achieved through utilizing a transportation aggregator that is integrated into the checkout process to provide moment shipping quotes based on the delivery destination.

Harvey Norman, for example, uses variable-rate postage that is calculated by postcode entry during the checkout process.

Some transportation aggregators enable you to add a level dealing with a surcharge to your delivery quote or as a percentage of the complete sale, yet transparency is the key here. Ensure you can legitimize these expenses to customers who may take exception, and set them out clearly in your postage approach.

Consider postage insurance to protect your business from any potential damages – it’ll help you save costs long haul. Another easy method to increase return-buyers is by including the following. Simple yet effective.

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