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I thought you all might like to see this article...
http://www.internetretailer.com/dailyNews.asp?id=30897
Biziness, I agree with your points. Domestically and internationally, USPS is just another great option but it is not the solution for every package. For example, many times it can be cheaper to use FedEx or UPS when shipping items greater than 5 lbs even when insurance or peace of mind is not involved. To get the best price and service you really need to weigh every package you ship and check the price, including all extra services like insurance, even if you think you know the best way. You will be surprised at how many times you are wrong. That is why using a single carrier solution like USPS Click-N-Ship is not the perfect solution for most businesses that ship regularly. In fact it can cost you money in the long run. To minimize your shipping costs you need multi-carrier shipping solution. But this is a whole subject of its own.
The interesting thing about this article is the fact that they are seeing shopping cart abandonment from shipping costs as one of the biggest problems. I think it may be even bigger than they state because they are looking at those that abandoned the shopping carts at checkout. You have to wonder how many never went to check out because the shipping charges were not handled correctly at the web site in the first place
Kathy, that is great that things are working out for you so well. Shipping needs are different for every company but one must to stay on top of changes and be careful not to lock yourself into one carrier. A union strikes, bad weather, or even a single annual price change can change your business profits overnight.
Even though business outflows and costs are different, I think how you deal with shipping costs at a web site has some definite commonalities. For example, I think free shipping should be used to increase sales volumes at the time of purchase. Or, flat rate shipping should be used to increase market size.
Regardless of how you handle your shipping, I think it is very important that you let the customer know up front all the options. You should also look at people exiting from your web site from you shipping options page because that is no different than them leaving at checkout. And, you need to know when you are scaring off customers.
At least that is my two cents…
I saw this article today and it contains some good food for thought on this subject:
http://news.yahoo.com/s/ap/20090821/ap_on_re_us/us_shopping_cart_abandonment
Can be tricky. Some prices went up with usps, insurance cost went up and you may want that plus signature if its x amount of dollars you are sending. I charge what I want to charge for shipping because its tricky to say in this economy what works and doesn't. Shipping costs will only go up. I believe and its proven more people Internet window shop then in real life.
I totally agree that free shipping on its own can be very bad. Shipping is a cost that must be accounted for in some way.
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