How To Setup Domestic Shipping Rates For Dropshipping?
Before you start selling you want to ensure you have setup your shipping fees within your eCommerce website to ensure you are charging your customers the appropriate amount of money to ship their products.
We recommend charging your customers the same shipping fees we charge you. This is super simple to setup and ensures that you don't make money or lose money shipping your products.
An important step in getting started with dropshipping is how you choose to setup shipping rates. Suffice to say there is no one "correct" answer when setting up shipping rates. There are different strategies you can use to accomplish different objectives.
Some Common Goals And Strategies For Setting Up Shipping Rates
When setting up your store you have the opportunity to configure your shipping rates however you want. You can follow different strategies to achieve the outcomes you would like, however, you cannot pursue all goals at once. It's best to choose a single strategy and implement it.
- Maximize Profit - If your goal is to maximize profit, we recommend taking your shipping costs and marking up the costs. That means charging your customers more for shipping than it costs you. While this sounds great, charging money for shipping may hurt sales as customers typically don't like to pay for shipping. These additional costs may scare away potential customers.
- Maximize Conversions - If your goal is to get as many sales or top line revenue as possible, it may make sense to offer free shipping on all your products. Of course, this means that you are paying the costs to ship your products and customers are not. The downside here is obvious, you maybe hurting your overall profitability. An alternate strategy here is to include the shipping costs in the cost of the product, then offer free shipping.
- Maximize Average Order Value - Lastly, you can set a free shipping threshold for order size. For example, orders over $50 ship free. This free shipping incentive works to increase the average purchase price on your website.
Understanding Your Shipping Costs
In order to implement any of the above strategies it requires you to know your shipping costs. Apliiq has setup a simple shipping rate structure based on the weights of products. All shipments have an additional $1.00 fulfillment fee included in the shipping costs below.
As you can see in the above table, Apliiq uses rates by weights. The commerce platform that you are using should provide you instruction for how to setup shipping rates by weight. Additionally, the Apliiq dropshipping app will populate weights for each product variant that is sent from the Apliiq website.
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