The calculation of delivery costs (taking into account the cost of packaging, UPS auditors, the preparation time of the order, shipping costs, even return costs) must be an integral part of your marketing strategy.
This is a key aspect for the profitability of a business as is the problem of distribution of these costs between the e-merchant and his client. Costs displayed on the site and actually invoiced to the customer reflect in part the actual delivery costs for the company, which depend on the type, size and weight of the item, the amount of purchases, the distance from the place delivery.
These actual UPS Auditors costs do not generally follow a curve or intuitive levels according to one of these criteria, they often differ from the shipping costs communicated to the customer, the display of which depends mainly on the marketing strategy of the e-merchant.
For e-commerce users today is a differentiating factor of prime importance. The amount of delivery costs is cited as one of the main obstacles to buying on the Internet by 55% of surveyed). The importance attached to shipping costs.
Customers of an e-commerce site tend to compare the prices of items viewed with those they think they find in physical stores. One of the main reasons motivating the purchase online is indeed the realization of savings, compared to the physical offer but also by the comparison of e-commerce sites between them, very easy on the web.
The corollary of this finding is that any addition of hidden or poorly advertised fees (delivery, compulsory insurance) may scare a user of an e-commerce site, which tends to consider that once on the site it should not it remains for him to choose the product and pay for it at the price announced at the beginning of the purchase process.
Numerous possibilities for calculating and communicating delivery costs exist. Here are the main methods used on e-commerce sites: The shipping costs are linearly proportional to a criterion (weight, number of items), which simplifies the calculation and work for UPS auditors but can quickly increase the delivery costs, and therefore requires a very clear communication to appear just for the customer.
The shipping costs are divided into packages according to price brackets (price, weight, or product type), which tend to disadvantage small orders. If these packages are too numerous, they can blur the communication of the site, even lead to threshold effects and give the impression of abusive fees.
The delivery and UPS auditors cost is fixed, regardless of the products and quantities.
