How to Define your Shipping Strategy for Your eCommerce Business?

Sarah Fedida
Fetchy Digital Manager. Always here to share with you the best infos
September 9, 2020

When opening an eCommerce business, there are a few decisions that someone has to make. What is being sold? What is the target market trying to be reached?  What eCommerce marketplace it should be presented in? On the same playing field concerning important questions to ask would be how to define the shipping strategy. 93% of consumers say shipping options are an important factor in their online shopping experience. Multiple factors should be considered when picking a strategy. Here are some factors that we have discovered that could assist in making this process a lot easier.


The first step to ensure is that the team involved creates a clear set of goals that will be achieved. An example of some goals that can set include increasing conversation, reduce cart abandonment rates and being more cost-effective. Allowing for one to set clear goals for the company can assist with advising future decisions being made. This is also a form of manifestation that can assist in making the goals a reality.


The next step is to decide on the shipping option you would like to do. For most eCommerce stores, there are four main shipping options that they choose to use. A store owner can choose between only using one of these options or combining multiple options to elevate their store even more. They are a free in-store pick-up, (free) same-day delivery(or next-day), free shipping, and live shipping prices.


A pickup point is a cost effective form of delivery. Instead of having a package going straight to the consumers door, the package will go to a nearby post office where the consumers will pick it up. What would need to happen once a consumer heads to checkout, the software should locate the nearest pickup point based off of the postal/zip code that was given. Customers are more likely 

Same day delivery is a popular option for consumers. As the consumers have the experience with the brand fresh on their minds, they would want to get their hands of the product as soon as possible. If a company advertises same day shipping before a certain time, this can also compel a customer into purchasing the product. This would eventually cause the shopping cart abandonment rates to decrease as a result.


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The most suggested and required option between eCommerce entrepreneurs is free shipping. Customers perception of a product changes positively when they view to see that they only really have to pay for the product without paying for any additional costs. Invesp says that 9 out of 10 consumers say free shipping is the topmost incentive to shop online more and orders with free shipping average around 30% higher in value There are three different ways to make your products include free shipping.

  • The first way is to absorb the cost of shipping into the price of the product. The costs will be covered within the price listed to the customer which means that the business would not have any extra expenses coming from purchases.
  • Another way that a company can offer free shipping is by absorbing the costs of shipping through a budget allotted for a specific month. If there is extra money that accumulates after cutting costs from a different sector of the business, they can use this as an option to boost sales for a certain amount of time.
  • The final way that one can consider offering free shipping is by starting a marketing campaign stating that a customer can qualify for free shipping once they reach an allotted amount in their shopping cart. As the average markup on a product is about 50%, a company can use the money going into purchase and use it towards the shipping. 58% of consumers add more items to cart to qualify for free shipping.


Live shipping is when you rely on the current metrics of the shopping cart and provides a distinct price during the checkout process. Live shipping is another format that someone can offer free shipping with as well. By monitoring the live rates, a store owner can charge a fixed rate covers the average price.  A way that a company can receive live shipping prices is to implement Fetchy as a plug-in in the store. Not only does Fetchy provide live shipping prices, but it also has incredibly low shipping prices that would be difficult to obtain on their own. Especially when a store has to ship internationally, it can become incredibly expensive with duties, taxes and the desire to have in a small amount of time.


Keeping all of this in mind, it is also incredibly important to be transparent with the consumers. Consumers appreciate when a brand is honest about their shipping policies. Whether it’s on the main page of the website or underneath a product description, keeping the consumer in the loop is a nice gesture. 22% of merchants feature information about their shipping policy on their homepage.


Defining a shipping strategy for an eCommerce business can be a tricky topic to navigate. But the intent of this article is to be informed and allow for novice eCommerce business owners to have more insight while beginning to develop worthwhile decisions. In whatever option one decides on, ensure to use Fetchy. With no monthly subscription costs or overly inflated shipping prices, Fetchy makes having an eCommerce business easier. 

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