Wednesday, April 13, 2011

Online Retailers: Not Sure How Much to Charge for Shipping?

One thing online retailers find challenging when operating an online store is deciding how, and how much to charge for shipping. Obviously covering the cost of shipping and handling is a must, but the latest trend for many retailers is to offer reduced or free shipping. It has gotten to the point that many consumers are starting to expect free shipping, even at the expense of paying more for the product (the cost has to go somewhere!). Being smart and efficient in how a company pays for the costs of order fulfillment and shipping is paramount as these costs often make up the largest % of a company's operating budget.

I recently came across this article that nicely summarize the shipping costs and policies of many of the top retailers out there. It's a good read if you are looking to create your own shipping rates for the products you sell.

Click for an articles on Important Questions to Ask a Potential Order Fulfillment Company & Order Fulfillment Services.


Ken Kowal is an expert in order fulfillment for online retailers. Check out more about order fulfillment on Twitter (@kennethkowal).