Is Flat Rate Shipping Cheaper For an Online Business Model?

Posted on Sep 5, 2017 7:00:00 AM by Noor Al Abid

is flat rate shipping cheaper It’s no secret that one of the greatest challenges faced by many companies that ship products to customers is choosing the right shipping model to follow. In this article, we ask the question, "Is flat rate shipping cheaper?" and discuss possible solutions for your business to save on shipping.

You may have a great product, but if you are wasting more money and resources than necessary on shipping, your profit margins will suffer. 

This is especially true of online retailers, as every single purchase must be shipped. Since you are continually seeking new ways to trim your shipping costs - while delivering the kind of service your customers expect - you may want to consider flat rate shipping as a solution.

Flat rate shipping can offer a range of benefits, but whether it is cheaper for your online business depends on a few important factors:

Different Sizes Mean Different Prices

If your online business model involves selling some small products, say, the size of a regular hardcover book, and some large products, such as a bar fridge, flat rate shipping is not for you.

Shipping costs increase as the size of the shipment does. So, flat rate shipping rates work best when your products are around the same size. The underlying principle of flat rate shipping is that you do not want to undercharge or overcharge your customers in a dramatic way.

Does One Size Fits All?

Well-marketed flat shipping rates simplify shopping at your eCommerce site. Your customers will shop on your site with the knowledge that no matter how many bottles of perfume or camping accessories they buy, they will pay the same for shipping.

If you have accrued sales data that is attached to another model of shipping fees, such as directly passing on the cost to the customer, you will be able to monitor sales under a new flat-rate shipping offer. You will also be able to calculate whether the increase in sales wipes out any increases in shipping costs.

With 49% of shopping cart abandonment being attributed to shipping costs, simplification of your shipping pricing might make sense. Also, online shoppers identify high shipping costs as the number one contributor for a negative shopping experience online. Next Steps

Should you choose to offer your customers flat rate shipping, you must do your homework. Calculate the average amount you are paying to ship your goods- include months of high and low volume - and choose an attractive rate that is close to your actual cost.

Keeping The Ball Rolling

Being able to simplify as many components of your online business as possible will help you keep things in perspective as you continue to grow. When you utilize the right flat rate shipping model, you can help keep your costs down and simplify the shipping process, enabling you to direct your attention at other important aspects of your business.

At eShipper we understand this, and stand ready to take your shipping woes away, whether you ship out small or large. We expect you to grow, and we are ready.

We know running a business isn’t easy. That’s why eShipper offers solutions that cost less but give you more time to do the work you set out to do. Whether it is flat-rate shipping or shipping in bulk, eShipper can help bring your business to new fronts. Learn more about our shipping solutions and book a demo here. Don’t forget to download our free eBook for more shipping best practices. New Call-to-action

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