It takes a lot of effort and planning to start your own venture. After months of hard work, you are finally ready to launch your eCommerce business. You have spent hours planning and making your product, building your social media, but you’re unsure about pricing your products right and work out international shipping.
You may feel as if you aren’t ready to start shipping out of Sri Lanka because you may not be familiar with international shipping, and the costs associated. You may wonder if you have priced something too high, discouraging customers from purchasing your products, or maybe too low that you will start making a loss.
Here are some tips and tricks to grow your eCommerce store, with a few handy shipping strategies to get you started:
Free International Shipping
Offering your customers free shipping is one of the best ways to prevent shopping cart abandonment – because everybody loves a good shipping deal. But as you may have guessed, shipping is never actually free and can cost a pretty penny especially for international shipping out of Sri Lanka. So how can you make free shipping a reality?
- Include your shipping cost to the cost of the product (your customer pays)
- You pay the full shipping fee out of your margins (your business pays)
- Include part of your shipping cost into the cost of the product, and you cover the rest out of your margins (both you and your customer pays)
Minimum Order Shipping
One other great way to cover the cost of shipping is to offer free shipping for customers who order more than a certain minimum quantity. This shipping strategy helps counterbalance shipping costs by helping you increase your average order size – however, your business would still have to bear the shipping costs out of your margins.
Flat Rate Shipping
A popular option is to charge a flat shipping rate for international shipping out of Sri Lanka – because most eCommerce business owners believe it to be the most cost-effective. However, do keep in mind that a flat rate might not always work best in your favor, especially if you are overcharging for a small shipment or undercharging for a large shipment. Flat rate shipping is recommended for businesses that sell a standard set of products of similar sizes and weights.
Real-time Carrier Rate Shipping
Another effective way to offer international shipping is to offer real-time shipping rates to your customers. Fulfilment providers like Swyft work with shipping providers such as FedEx, Aramex, DHL, UPS, US Postal Service, Swiss Post, Singapore Post, and others to provide cross-border shipping out of Sri Lanka. Don’t have a website to connect to? You can always log into our website and check out our shipping rate calculator to give your customers a ballpark international shipping rate.
Hybrid Shipping Model
This model focuses on offering the best of both worlds. It combines free worldwide shipping + flat shipping rates. Sounds confusing? Let’s explore how this can be done:
Take an item, and assume it may weigh about 300g & the item price is $25. Mark the display price as $35, and offer free worldwide shipping. You can offer this for standard delivery, with worldwide shipping averaging between 12 – 30 working days. Should a customer want express delivery, you can make it available for an additional $10 where the item will be delivered within 4 – 5 working days.
Although during a single item purchase, a loss of $3 to $4 may occur, standardized rates increase customer conversions as they aren’t surprised with a shipping rate on the final step (showing high shipping fee’s on the final step increase probability of cart abandonment).
In addition, purchasing multiple items will result in additional profit. In a scenario where x3 items are purchased, a total of $30 will be recovered as shipping cost. We recommend you use this marketing strategy to help increase cart value, by offering free express shipping for purchases of 3 or more items.
There is no one solution that may work best for everyone. Each business is unique, so should be the shipping strategy you adopt. Do keep in mind to select a shipping strategy that works best for your business, in the long run.
Swyft is an eCommerce fulfilment partner based out of Colombo Sri Lanka, offering eCommerce business of all sizes reliable and easy international shipping. If you are an eCommerce business owner looking for some insight to grow your business? Stay tuned to our blogs as we divulge various tips and tricks of the trade.