Shipping costs are an essential part of managing your sales on The Oblist. Calculating and handling these costs strategically can ensure smooth transactions and prevent financial losses. Here’s how to manage your shipping costs effectively while keeping prices attractive to customers.
1. Understanding Shipping Costs
Shipping costs are influenced by several factors:
Product Dimensions and Weight:
Shipping fees are determined by either the actual weight or the volumetric weight (whichever is greater).
Formula for Volumetric Weight: (Length × Width × Height) ÷ 5000 (in centimeters).
Destination:
Shipping internationally or to remote locations can significantly increase costs.
Carrier Fees:
The Oblist provides access to discounted rates from trusted carriers like FedEx, DHL, and UPS.
Additional Fees:
Include potential customs duties, taxes, and insurance for high-value items.
2. Why Include Shipping Costs in Your Product Price?
Charging high shipping fees at checkout can deter customers, especially for bulky or expensive-to-ship products. Instead, we recommend including part or all of the shipping cost in your product price.
Customer Acceptance:
If a customer sees a €1000 shipping fee, they are likely to refuse the purchase, leading to a refund and dissatisfaction.
However, by including 50–70% of the shipping cost in the product price and asking the customer to pay a reasonable balance, you increase the likelihood of completing the sale.
Example:
Total shipping cost: €1000.
Include €500–€700 in the product price.
The remaining €300–€500 is shown as a shipping fee at checkout, making it more acceptable to the customer.
3. Ensure Pricing Consistency
While incorporating shipping costs into product prices is important, sellers must ensure that:
Prices Remain Competitive:
Overpricing a product compared to similar items on The Oblist can lead to rejection during the approval process.Pricing Aligns with the Catalog:
Use the catalog as a reference to maintain consistency and justify premium pricing with unique product features.
4. Steps to Calculate and Manage Shipping Costs
Log In to Your Dashboard:
Use The Oblist’s shipping calculator to estimate shipping costs based on product dimensions, weight, and destination.
Optimize Packaging:
Reduce volumetric weight by using compact and efficient packaging materials.
Factor in Free Shipping Thresholds:
If a customer qualifies for free shipping (based on The Oblist’s regional thresholds), ensure the cost is covered in your pricing.
Monitor Market Trends:
Review similar items on The Oblist to ensure your final price remains competitive and justified.
5. What Happens If Shipping Costs Are Too High?
If shipping costs are unreasonable and left entirely to the customer, the following can occur:
Refunds: Customers may refuse to pay, leading to automatic refunds.
Reduced Visibility: Repeated refunds or order rejections can result in your products being deprioritized in The Oblist’s algorithm.
6. Best Practices for Managing Shipping Costs
Incorporate Costs Strategically:
Include a percentage of shipping in the product price, ensuring the remainder at checkout is acceptable.
Use Carrier Discounts:
Leverage The Oblist’s partnerships with carriers for up to 93% discounted rates.
Communicate Transparency:
Clearly state in your product description: “Price includes a portion of shipping costs for seamless delivery.”
Other related article: International Shipping: Customs, Duties, and Best Practices
7. Contact The Oblist for Support
If you’re unsure about shipping costs or how to manage them, contact vendors@oblist.com. Our team can provide guidance and help optimize your shipping strategy.