Shipping Charges On Your Website
by Jason Corgiat - Owner of PSI
| Marketing tactics are a dime a dozen, some are effective and
some do more damage than good. When you are in the start-up or redesign phase,
working with a website design company, it’s a great time to review your policies
regarding shipping to see if you can transform those policies into sound
marketing devices. A professional website design firm should be able to help you
to develop sound policies regarding shipping and to ensure that your website
development makes the best use of whichever tactic you choose to exploit.
Consumer psychology is a huge factor that should be considered in your policy
and website development. Even with the most professional website design on
earth, if your pricing or shipping policies aren’t inline with what consumers
expect your conversion rates severely suffer. Many folks may even leave your
site in the middle of placing an order when they see what your shipping rates
are.
There are three basic tactics relating to pricing/shipping and consumer
psychology. First, a company may choose to use low prices and high shipping
charges. This will attract customers who are searching for the lowest price, but
if they are on their toes, the high shipping charges will send them packing. It
is a strategy that often works, especially with first time customers, but
sometimes it hampers the company’s possibility to get repeat customers and
really, repeat business is a lot easier to get than new customers.
On the other hand, some folks just go in search of free shipping and are a
little less concerned about the base price of the product, figuring that it all
comes out in the wash so to speak. You’ve got to understand though, that
customers evaluate your offering first on price, and then they check out the
shipping. Their perceived value is what is important. If you offer free shipping
and your prices are somewhat comparable to your competitors, you can come out
ahead using this tactic. You can also offer a “rush order” upgrade, not meaning
that the shipping method will be faster, but that the package will receive
priority handling, getting it processes and in the mail quicker than usually.
Same-day order processing is a concept that many customers value.
Because consumers just naturally love “free” stuff. Free shipping can be used as
an incentive to increase the amount of a purchase. This is one tactic that can
really boost your revenues and give you a marketing advantage. Rather than
offering free shipping on everything, for instance, you would offer free
shipping only on orders that exceed a certain dollar amount. If a customer is
making an $80 purchase and they saw something on your website that they really
wanted, but didn’t want to spend the additional $20 for it at the moment, they
are likely to go ahead and purchase the second item as well if you offer free
shipping on purchases over $100. The way they see it, if they would be paying a
$10 shipping fee, they are really getting the second item for half-price.
Whichever tactic you choose in regard to your shipping policies, make sure that
your website design company understands it when they are developing your website
and that their services aren’t limited in regard to their ability to set
thresholds and implement the strategy you choose. Sometimes this requires a
little programming expertise that not all website development companies have.
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