The cost of any product is not only the cost of its production. As well as shipping costs include lots of other expenses a seller has to care for. Can’t you understand what product and shipping costs come from, and why sometimes shipping costs so much? Let’s put things right — we’ve collected 7 key points you should know about ecommerce logistics to plan a winning pricing strategy and make your business flourish!
Ecommerce logistics is what lets you make your customers happy
There are always hidden figures standing up for big success. This is a product that attracts customers, makes them fall in love with it, and, finally, buy it. Actually, for a buyer, things happen in a couple of steps: they notice, order, and receive. That’s it!
Yet, they had no idea there were lots of people and activities involved in manufacturing a product and delivering it to them.
This is a product that pleases the eye. Yet, this is a top-level shipping service that allows a customer to enjoy it in reality.
So what do product and shipping prices depend on? And why does shipping sometimes cost a lot, even more than the product itself? Let’s learn more about that to let you build your winning pricing strategy for your ecommerce business!
Choose a supplier with a clear pricing strategy and amazing ecommerce logistics
The prices are rising from year to year. That’s why online shopping becomes a more and more tempting option for the end user — this is a chance for people to save money and get what they need!
The point is that this is not only manufacturing a product that becomes more expensive. Transportation, labor, rental of premises… All rise in prices. And this puts too much pressure on offline retailers. Meantime, ecommerce business models exclude lots of expenses allowing ecommerce entrepreneurs to provide customers with items at lower prices and enjoy healthy margins.
It remains for them only to choose a reliable ecommerce supplier that will take on all such tasks and let you make your customers happy with no effort.
Sellvia is a full-scale ecosystem designed to facilitate your business management. Our team is happy to provide you with best-selling ecommerce products on favorable terms, with amazing ecommerce logistics (fast shipping & order processing), high-converting marketing materials, detailed guides on how to start and grow a steady ecommerce business, and top-class support.
It’s crucial for you to choose a supplier with a clear pricing strategy. In this case, it will be easier for you to figure out prices and build your own pricing strategy. This is how to win your customers.
At Sellvia, we’re committed to keeping an honest and trustful dialogue with our business partners. That’s why we’re glad to tell you how prices on products and shipping are set!
What’s included in the product’s initial price?
A customer treats a product as a thing, while a seller regards it as the sum of factors. So how are prices set?
A price you see in our product catalog is a sum that consists of production costs and costs of supplying it to our fulfillment center.
Actually, there’s nothing challenging about product pricing. For you, as a business owner, this is the price of a product delivered to our California-based fulfillment center with amazing ecommerce logistics allowing lightning-fast shipping. In practice, this is exactly what you need to provide your customers with a pleasant shopping experience.
Note! You are likely to find similar products outside the USA at lower prices. Don’t be surprised: after they will get to the United States, their prices will increase and become the same we offer these products at. We do our best to keep prices low allowing you to enjoy the highest profit margin.
What is shipping? What’s included in it?
Shipping is a tool allowing a customer to get the desired product. And while a product’s initial price includes manufacturing and delivery costs, shipping is something greater.
Traditionally, a customer treats “shipping” as the end result. In practice, shipping includes lots of activities.
Shipping Sellvia offers include expenses on storing goods in our fulfillment, reliable packaging, fast delivery, labor, and after-sale support.
This is what affects shipping costs. And this is why shipping can sometimes cost more than a product itself (speaking about small-priced items), but this is not a big deal. What really matters is that it doesn’t prevent you from making money on such products.
Why does shipping sometimes cost more than a product?
It all depends on the product. There are cheap and expensive items. Accordingly, shipping will take different figures as a percentage of the price.
Meanwhile, services for storing, packaging, shipping, and support can require the same resources regardless of how much a product costs ($1 or $100). Certainly, in case we’re speaking about items that are similar in dimensions.
What should you learn from it?
Shipping can cost as much as a product itself, give or take. Yet, if a product costs $10, shipping can cost equally or even more, and it’s likely to seem like it’s too expensive. And if we’re speaking about a $100-product, it is not essential to pay $10 for fast shipping.
Yet, actually, both cheap and expensive items let online retailers earn big. It may seem to you that you should work with high-ticket products to succeed. However, even if shipping costs more than a product, this doesn’t mean you won’t earn.
All these products will always be in demand, and people will always buy them, but they’ll have to spend more money on them. That’s all right.
Why do I have to pay for shipping?
When you see a product in our catalog, you see its initial price and its shipping cost. So you may wonder, why do you have to pay for shipping?
Actually, the pricing policy of your business depends on you only. It’s up to you to decide who is to pay for it — you or your customer.
Nobody stops you from adding shipping costs to the product’s price, that’s okay. In doing so, a customer is supposed to think that shipping is free of charge. Yet, they pay for both product and shipping when placing an order.
Or you can move further. Products with a high potential profit margin let you reduce your profit to make your product offer much more tempting. Why not? The choice is yours!
Hopefully, there’s a solution that both you and your customers will enjoy. Stay tuned!
How do some suppliers provide free shipping?
Do you also buy online? You’re likely to ask a reasonable question: why do others promise free shipping? Actually, this is a marketing trick.
People are used to shipping being free. Yet, shipping is never free.
The point is: it doesn’t matter what you buy, you need to always pay for shipping. It depends on the presentation, you know.
- Product’s price with shipping included + “free” shipping
A supplier includes the shipping cost in the product’s price. It means a product’s price becomes higher. Yet, potential customers believe they get free shipping instead, and this is enough for them to make up their minds.
- Product’s price with shipping excluded + paid shipping
A supplier gives it to you straight. This is a product with its price and shipping costs. This approach seems to be fair, but not always tempting. On the one hand, customers see how much the product itself costs, and how much additional effort it takes to let them receive it. Yet, a customer is likely to be surprised by high shipping costs.
At Sellvia, we build business-to-business relationships. So we’d like to make pricing clear for you.
That’s why we show you the product’s initial price that comes from manufacturing costs and shipping to our fulfillment, and also show you shipping costs to let your customers receive the product (storing, packaging, labor, shipping, and after-sale support).
How to make your customers be happy about shipping?
You’re absolutely right. Shipping costs can sometimes be high, but this is inevitable. Hopefully, this can’t stop you from making money on products with expensive shipping.
All you need is to focus on converting your visitors into customers, you know, to make them buy from you, and, then, make them happy about their choice. This is the reason why in Sellvia, we pay particular attention to shipping and all the activities it implies.
We know well how to make your customers happy and inspire them to come back to your store for more purchases.
- Reliable packaging
No more damage! We know that everything can happen to a package while shipping. So our team is glad to pack orders in such a way to let your customers receive them safe and sound!
- Prompt processing
We won’t make your customers have extra waiting! While some suppliers take 14 days and more for processing, it takes us only 1 business day to process your orders and get them ready for fast shipping.
- Lightning-fast shipping
Most Americans expect to receive their orders within 4 days. With Sellvia, this is not a big deal! We’re happy to provide your customers with quick delivery!
- 24/7 after-sale support
Customers are afraid of being left alone with their issues. You need to show them that you value them, and they’ll come back to your store again and again. And we do our best to make it cost nothing for you: our customer support team is looking forward to providing after-sale support regarding each and every order!
Is it possible for entrepreneurs to reduce costs for shipping and ensure amazing ecommerce logistics?
Are you afraid of your profit being at risk because of expensive shipping? No way! We have a solution for it — it’s customized shipping!
Customized shipping is a chance for business owners to provide customer-oriented shipping and cover some shipping expenses.
How does it work? Easy as never before! With Sellvia, you can offer your customers different shipping methods.
The point is, a customer waits for a choice. For example, those who want to receive their orders in the fastest way will enjoy paid express shipping.
You can add express shipping to a product or a product category. So those who want to pay money for the faster delivery can choose express shipping for extra money. This is the way for you to compensate for some shipping expenses.
Meanwhile, you can still offer free shipping. You can point out a 6-day delivery, but set a minimum threshold for it, $50, for example. Accordingly, those who order less will have to pay for express shipping. And they won’t definitely regret it: this is the way for them to receive their packages faster!
NOTE! Customized shipping is all about your internal business processes allowing you to offset the shipping costs. All the products will be delivered by Sellvia anyway in the shortest possible time.
And if they decide to buy several products at once to get so-called free shipping, you’ll benefit from that either — at Sellvia, we’re happy to offer you flexible shipping cost calculation.
If your customers buy several products at once, the shipping will be multiplied based on the size and weight of the items.
Summing it up: amazing ecommerce logistics in your store
For clients, this is the way you treat them that matters. Nowadays, retailers tend to convert many customers, but they’re often not able to provide them with a pleasant shopping experience. And again, and again.
At Sellvia, we’re committed to allowing you to provide your customers with top-class service and make them happy about the shopping experience in your store. This is why we provide prompt order processing, reliable packaging, lightning-fast shipping, and top-level customer support.
Happy customers will always come back to the stores they enjoy buying from. They’ll even recommend their friends to deal with you. And this is great. This is how you can build a large loyal community around your store or even around your brand and grow your business into a top-performing sales machine.
And this looks like a business set up for long-term development with no effort because this way of attracting customers doesn’t require you to spend money on it or do something at all!
So are you eager to provide top-level customer service and allow your business to grow steadily on autopilot? Choose a reliable supplier allowing you to make your customers happy. Due to the amazing ecommerce logistics that Sellvia ensures, this is not a big deal to start and run a successful ecommerce business. Moreover, you can start a business with Sellvia TODAY & FOR FREE! No investments, no skills required, no risks… Will you give it a try?