Shipping fees vary depending on the mail services you use but normally are based on the method of delivery, the weight of the package and the distance it takes to deliver. This gives you an idea for how much it will cost you to send it and then you can set your price. The two most common shipping fees are Flat Rate and Calculated shipping fees.
FLAT RATE shipping fees are where the cost of shipping for your company is the same regardless of the product. This means that you lose some money on larger products but make up that money on smaller products, the aim is to average out the total shipping fees for your company to essentially break even.
CALCULATED shipping fees are used to figure out the specific cost of shipping each individual product and either covering that cost exactly by adding it at the end of the purchase or adding a little extra cost to make a small profit. When looking for a fulfillment partner a seller should look at base costs and shipping fees as well!
Handling fees include the cost of packaging materials (like boxes, bubble wrap and labels), carrier fees (the time it takes to package everything up and drive the package to the mailing service) and the time it takes to design your shirt. But here at Moteefe we believe that the base cost offered on your platform should include handling fees. So we don’t charge you a penny extra for them!
Shipping fees have a big impact on your conversion rate (your ability to turn a window shopper into a big spender). Remembering to watch your conversion rates is really important because...
When comparison shopping, UPS found that shipping fees are almost as important as the price of the product with 23% of consumers looking at shipping costs and 26% looking at product pricing. This is important to think about when looking to gain new customers. Lower shipping fees is very important for attracting new customers, for example...
Keeping customers is key to any business. If you have high shipping and handling fees then you aren't likely to have many return customers. UPS and comScore say that, low or flat rate shipping fees make customers 54% more likely to return. If you want to keep your customers around for longer, then check this out:
How much people buy and spend can change based on the shipping fee, as people are likely to spend more if the shipping cost is lower. However, shipping fees that help you gain customers are more likely to result in smaller purchase orders because people need to warm up to you and your company. When customers shop online, they don't want to have to wait weeks for something to be delivered. If you're offering free shipping that means people will be willing to wait longer, but the higher the cost, the less time people expect to wait, so plan it out!
Hopefully this gives you an idea of how shipping and handling fees might affect you when you’re selling your designs. Whether you're looking to design a shirt or start your own clothing line, here at Moteefe we want to help you as much as we can so we offer low and reliable shipping fees to benefit you and your fans.