4 Tips That Prove Shipping Does Affect Your Online Business


An online business’s success comes from many areas within the organization. Marketing plays a big role, as well as customer service. But there’s one other, often overlooked, area of the online business that has a huge influence on the profit margin as well.

Shipping plays a big part in a company’s fortunes. This fact becomes particularly noticeable when aspects of shipping are ignored and the loss of money becomes apparent. There are four ways to prove that shipping does, in fact, affect your online business. Some of these might surprise you.

1. The calculations of shipping
This is a tricky area and it takes time and experience to learn the proper procedures. If you charge too much shipping, you lose. If you charge too little shipping, you lose.
So what do you do? Every business needs to go through a basic lesson on shipping procedures and prices. Many times it’s shipping that causes us to lose money or lose clients. If you miscalculate shipping costs, either one of these two things can happen and the end result is profit loss.

2. Incorrect packaging
If products are not packaged correctly, they can get damaged. Many things can happen when merchandise is damaged. The customer will request a refund or an exchange, or refuse to pay if the product was classified as pay-upon-receipt. Whichever happens, profits will be lost when packaging is done incorrectly.

3. Wasting time
Sometimes packages do not get delivered on time and this makes the customer very angry. Your client typically views the shipping portion of the business as an essential element of the purchase. If the product is late, this reflects badly on your company, and business can be lost to competition. Every firm needs to ensure punctual delivery time within its online business.

4. Free shipping
This sensitive area is one that has played a role in both losses and gains with regard to online business profits. If done in the right manner, free shipping can help to increase profits by forming loyal customer bonds.

Customers really appreciate free shipping, and some of them will want to do more business with you when this amenity is offered. On the other hand, free shipping may serve as a failure in the wrong hands. Never offer free shipping on sale items because of the drastic loss in profits that will ensue.

The proof is here. Shipping has little influence upon the online business and so much effect on its profits. Without the correct shipping mentality, an online business can never thrive.

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Originally posted on October 20, 2013 @ 9:38 pm

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