Online sales have changed the face of the retail industry. However, as customers are getting increasingly reliant on online shopping, they are also becoming increasingly accustomed to something that is very difficult to provide—free shipping. The cost of free shipping to companies can be prohibitive, but customers are demanding it. These costs are even more overwhelming for businesses when companies like Amazon are offering same-day and next-day deliveries for little to no cost. What can you do to deal with the expectation of free shipping? Here is what businesses need to know.
Change the Way That You Look at Shipping Costs
For some businesses, managing free shipping expectations is more about an attitude adjustment than a budgeting change. If your company can handle the cost, look at free shipping as a marketing expense, not part of the cost of your supply chain. Offering free shipping is a selling point that builds customer loyalty, so if you can do it, put it in a different place in your budget to change the way you see the investment.
Work with a Delivery Partner
If you build a strategic relationship with a delivery partner, then you could find a shipping arrangement that works for your budget and for your customers. For example, if you send all of your shipments through the same company, you may be able to negotiate a lower, bulk shipping cost or flat fee that you can work into your budget more easily. If free shipping is still out of bounds under this arrangement, you could pass the savings on to your customers with lower shipping rates than your competitors.
Accept Free Returns
One thing that customers hate more than paying for shipping is paying for returns. If you can’t offer free shipping, your customers will be more likely to play along if they know they can send something that isn’t satisfactory back to you without any additional expense.
Contact Xcel Delivery Services to discuss your shipping needs and to find out how we can help you get your products to your customers faster and more affordably. Talk to a delivery team member in Phoenix today by calling (602) 368-1300.
