In a recent survey on online shopping habits across Europe by Optimizely, they reported that 80% of respondents had put something in their online shopping cart and then not completed the purchase – something call ‘cart abandonment’, a very annoying situation for an online retailer. Half cited ‘unexpected shipping charges’ as the reason. In a different part of the survey 36% cited shipping charges as their reason not to buy online at all.
One of the reasons for is that many other online retailers offer ‘free shipping’.
Wow, how amazing of them!
But of course it’s not true. Shipping costs real money, so those retailers who offer it 'free' simply either hide the cost in the price of the product, or treat it as a general ‘cost of doing business’, and work for nothing.
For expensive designer products like those found on upmarket sites such as Farfetch.com, the cash profit on a sale is generally so high that the shipping cost is a mere trifle in the transaction (it costs the same to ship a £290 Valentino T-Shirt as it does one of our £49 ones), hence their regular ‘free shipping’ offers.
For the average online purchase though the shipping charge is a significant and irreducible amount, and if not passed on would seriously reduce the profitability of the transaction.
At SUPREMEBEING we simply pass on the actual cost the shipper charges us. We could do it a little cheaper but we’ve chosen to use a quality shipper who offers good reliability and order tracking so our customers have full visibility.
In turn our customers get a nicely packaged product delivered to their door, in a reasonable time frame, for a reasonable amount, transparently displayed.
The smart thing to do, especially for an overseas customer, is to order several items, as the shipping cost is per parcel not per item. We like that too!