Categories
Academy Cost Shipping

How To Set Shipping Rates For Your Dropshipping Store?

It is essential to find the right shipping strategy when you start a dropshipping business and open a dropshipping store on ecommerce platforms. Shipping strategy involves shipping timeshipping methods, and shipping cost. Keeping shipping costs down is quite important for both your business and customers. Research your competitors and see what they are offering about shipping price strategy. Even the most loyal of customers can be tempted by potential savings on shipping, so offer something comparable or better. The article will introduce the most commonly used and popular shipping price strategies for dropshippers. Then you can choose a shipping price which increases sales and happy customers so that you can set shipping rates for your dropshipping store.

Shipping Price Strategies

There are four strategies that you can use to handle shipping rates for your dropshipping store.

1. Free Shipping

You may feel pressure to offer free shipping for your dropshipping store. Amazon Prime has trained consumers to not see shipping as a necessary expense when shopping online. In fact, free shipping is not free. It is simply a psychological strategy to make customers feel like they are getting a good deal and encourage customers to buy more. Many dropshippers include shipping costs in their products’ price so there isn’t a loss in profits and still maintaining positive profit margins.

So how to make free shipping a reality? For a small business, it may be difficult to offer unconditional free shipping and returns. But there are three ways that you can refer to create some opportunities for free shipping.

Offer free shipping only during the holidays

In general, there may be a surge of sales during the months of October through December. During this season, you perhaps have high enough profit margins to accommodate the shipping costs. Offer free shipping during the holidays is also a great way to drive sales to your store,  even over your competitors.

Set a minimum shopping cart value

You can set a minimum shopping cart value so that a customer must reach the lowest amount to be eligible for free shipping. Determine the minimum order value that still allows you to make a profit. Many of the biggest online shopping marketplaces, such as Amazon, Walmart, enforce minimum order values for customers to qualify for free shipping.

Make shipping free for customers who subscribe to your email lists

It is also a good way to make shipping free for customers who subscribe to your email lists. Subscribers will receive emails and know about your newest products, sales, and marketing efforts. And your customers will become long-term shopping and contribute to more sales.

2. Flat Rate Shipping

Flat Rate Shipping can be easily implemented and offer a calculated way of managing your costs. You can take the average of the shipping costs of the products you are selling on your dropshipping store to decide on your flat rates. If you sell a wide variety of products with different sizes and weights, offer different flat rates by dividing your products into groups. Separate your products by weight or price range and add in all the associated shipping costs and calculate each groups’ average.

With flat rate shipping, you will definitely pay more or less. And when you start getting steady sales, you can find popular products and adjust your shipping rates accordingly. And there are three ways to deal with your internal shipping costs, for you may pay more with flat rate shipping.

①Take the shipping cost out of your profit margin.

To know your profit margins, you need to know the following elements:

  • Total Orders Received
  • Average Price per Order
  • Average Profit Margin
  • Shipping Fees per Order
  • Shipping Costs per Order

②Increase the price of the product to include some of the shipping cost.

③Pass some of the shipping cost on to your customer as a shipping line item in the order.

For the average store that ships average-sized, normal products, the best choice is to set a flat rate shipping cost for your entire store. The “sweet spot” appears to be $5.00. Once you know the shipping cost of your product, take $5.00 off that price and increase the price of your product by the difference.

3. Actual Shipping Cost

Pass the actual shipping cost to your customer is the simplest strategies to avoid you losing any money. If you are working with a supplier that calculates and reveals shipping costs per product, you can easily add the actual shipping cost to your dropshipping store.

However, the separate shipping cost that they must pay for each product may lead to many abandoned carts. The other big problem with the actual shipping cost is sticker shock. In fact, the actual shipping cost to you is much more than the average person expects. Something small and lightweight like headphones with an average of about $9 to ship by FedEx. If you pass through the entire shipping price for the order to your customers, they will think you charge too much for shipping. So be careful if you use actual shipping cost and be sure that you are monitoring your traffic to see how people are reacting to the shipping costs.

And when is actual shipping cost OK?

There are certain scenarios that may be appropriate to use it.

①If you sell the exact same product as your competitors and you want to compete on product price, take the entire shipping price out of your advertised product price. You may have an edge in this way.

②If you sell very expensive yet lightweight, small, and easy to ship products, pass through the entire shipping cost to the customer may be alright. It is because the shipping price is just a small percentage of the total order.

③If you offer multiple shipping methods such as ground, 2 days, and overnight shipping and you introduce faster but more expensive shipping methods like overnight shipping, customers can generally accept the actual shipping cost.

4. Promotional or Tiered Shipping

Tiered or Promotional Shipping is a combination of all three that introduced above. Only after you have had significant data and analytics to understand what works for each scenario you can use it. It allows you to offer a promotion right when you know it will make the most sense for your business, such as resonate best and end in more sales. And promotional strategies like free shipping on orders over $50, or free shipping on all T-shirts for the month of January.

And if you want to set tiered shipping rates on Shopify, there is an instruct.

Facebook Group Discussion

2 hours ago

CjDropshipping.com

🥳🥳This magnetic creative toy pen can not only be used for writing but also can be used to pass boring leisure time!
🤩ONLY $1.32
Check here 👉 bit.ly/3Gey99f
#CJdropshipping #winningproducts #dropshippingwinningproducts
... See MoreSee Less

View on Facebook

22 hours ago

CjDropshipping.com

Dropshipping Business Earthquake, after one of the dropshipping tools Shopmaster shut down. Oberlo is shutting down too. Dropshippers have to find alternatives.

cjdropship.com/topics/oberlo-is-shutting-down-what-are-the-best-alternatives-to-oberlo/

Oberlo Is Shutting Down – What Are the Best Alternatives to Oberlo?
CJ Dropshipping
May 17, 2022
Oberlo Is Shutting Down – What Are the Best Alternatives to Oberlo?
What should dropshippers do?
What are the best Oberlo alternatives?
1. DSers
2. CJ Dropshipping
3. NicheDropshipping
4. Spocket
5. Printify
Today we got breaking news for dropshippers. Oberlo, one of the most well-known apps on Shopify will officially close its entry on June 15th, 2022.

Oberlo has been a successful dropshipping app. It provides a convenient method for store owners to fulfill orders with AliExpress.

Among all the various dropshipping apps on the market, Orberlo has got a great reputation in the community. It has helped countless people become successful entrepreneurs.

However, the sites will officially shut down on June 15th. For the people who are currently on a paid Oberlo subscription plan, they can cancel it now and get a refund.

What should dropshippers do?
There are many possibilities for Oberlo to make such a decision. And shutting down the Oberlo app doesn’t mean the Oberlo company is going to shut down.

We will talk about this topic in our latest articles and share some insights about the dropshipping industry in the short future.

For now, Oberlo will shut down soon. If you are one of the entrepreneurs who have been using Oberlo, you need to think about what to do next and find a solution for the incoming event as soon as possible.

In this article, we will present some best dropshipping sites as alternatives for Oberlo. If you wish to take this challenge as an opportunity with a new service provider, this is the chance.

If you are not using Oberlo, the event may also lead you to some deep thoughts about the industry. In case your current supplier or service provider got the same situation in the future, preparing in advance is always a good choice.

What are the best Oberlo alternatives?
1. DSers
On the official Oberlo FAQ page, Oberlo has suggested the users migrate to a trusted Shopify partner, DSers.

DSers is a dropshipping app that provides multistore management. You can use it to manage most dropshipping platforms such as Shopify, Wix, and Woocommerce.

Just like Oberlo, DSers allows you to sync orders from your store to AliExpress and then fulfill the orders in a more convenient way.

Also, you can use DSers to source the products on AliExpress. Instead of sourcing products on your own, using DSers will save you a lot of time to locate the specific product you want among the massive category.

In addition, DSers is also available for data transferring from Oberlo. If you wish to migrate your Oberlo account data to DSers, you can do it directly on the Oberlo admin home page.

What makes DSers unique?
Good Chrome extension
Multiple store order manage
Optimizing sourcing time
Allow data migration from Oberlo
Good chrome extension
Still, DSers is not the best choice if you wish to save your budget and justify the cost. This is because if you want to fully use the functions of DSers to manage more than 3 stores, you will need to subscribe to the paid plan first.

2. CJ Dropshipping
CJ Dropshipping is a one-stop dropshipping platform that provides a complete Dropshipping service.

The service of CJ dropshipping covers sourcing, shipping, order management and even filming ad videos.

CJ Dropshipping has both features of Oberlo and AliExpress, you can find products that come from various international suppliers at cheap prices on the site. By using this sourcing feature, you can easily find better suppliers different from AliExpress.

If you need some information about the recent trendy products or best-selling products, you can also explore the trendy products recommendation columns on the CJ Dropshipping site. Every season there will be brand new innovative products for you to choose from.

Besides, the overall shipping time of CJ Dropshipping is faster than AliExpress suppliers. This is because many suppliers on CJ Dropshipping got their own international warehouses.

Also, if your business volume is big, you can actually have your own private inventory in CJ warehouses. Then your orders can be shipped out within 1 to 2 days.

If you are not only looking for a store integration service provider but also suppliers with better prices, CJ Dropshipping will be a good choice for you. Unlike other paid-to-use platforms, most functions on CJ Dropshipping are completely free to use.

What makes CJ Dropshipping unique?
Free sourcing for better suppliers
Trendy products recommendation
Faster shipping time than AliExpress
International warehouses
Bulk order management
Various extended services (POD, Photography)
3. NicheDropshipping
Niche dropshipping is a site that combines sourcing agents and dropshipping suppliers. You can find various product collections on their site just like searching for products on AliExpress.

When you want to search for any products with better quality or price, you can directly consult the agents of NicheDropshipping to find the product you want.

If some products got higher prices than you expected, you can also negotiate with the agents. Agents of Niche dropship are also professional in getting the best quotation from the suppliers.

Besides, Niche Dropshipping got international warehouses in both China and the USA. So if your market is in the US and you wish to optimize the processing time of the products, you can also choose to bulk purchase the products to stock in their USA warehouse. Once products are stocked in the USA, shipping and processing time can be amazingly fast.

In addition, the photography service is available if you wish to see the actual quality of the products. You can also request photos or videos for advertisement usage. But keep in mind this service is paid, the cost will depend on your request content.

What makes NicheDropshipping unique?
Free product sourcing quote
China & USA warehouses
Automated dropshipping service
Photography service
4. Spocket
Spocket is a high-rated dropshipping platform that allows you to connect with suppliers all over the world.

Most of the suppliers on Spocket are from the USA & the EU. This special feature makes it an excellent tool to search for products within the US and the EU.

The best thing about domestic suppliers is the shipping time. If you buy products from domestic suppliers, shipping will only need takes 2-5 days to deliver. This is why international warehouses are also recommended by other dropshipping platforms

Still, the limitation of domestic suppliers is the product variety. If your wish to expand your business, you will need to explore more international supplier platforms.

If your target market is in the US or in the EU, Spocket is a great choice for you to find the supplier you prefer to work with.

What makes Spocket unique?
Available US & EU suppliers
High-quality products with samples
Winning products recommendation
Support multiple platforms (Shopify, Woocommerce, Wix)
5. Printify
POD (Print on demand) is a special major category among all different kinds of products. When we talk about POD products, Printify must be the top to mention. It is also a dropshipping site that specialized in integrating POD suppliers.

On Printify, you can source a wide range of customizable products including hoodies, accessories, T-shirts, and so on.

Wish to see the effect picture? You can simply upload the picture to the platform then the editor will automatically generate an example picture.

Still, not all the products are customizable and some products are only customizable if you have a large order quantity. Many suppliers require MOQ (minimum order quantity) to provide customization services. And of course, it’s not free.

So if you are running a general store with various product categories, Printify may not be the best option.

If you are looking for customizable products or wish to brand your products with store logos, you check out Printify to make your own products.

What makes Printify unique?
Specialized in POD products
Wide range of customizable products collection
No extra charges except product and POD fee
Simple editor for designers
... See MoreSee Less

View on Facebook

🥰Multi-function ingot waist pad/car lumbar support
Care for the waist, relieve stress, and be healthy every day!
🤩ONLY $5.53
Check here 👉 bit.ly/3LqONTT
#CJdropshipping#winningproducts#dropshippingwinningproducts
... See MoreSee Less

View on Facebook

3 days ago

CjDropshipping.com

#CJdropshipping #softslippers #householditems
🥰🥰Good softness and tenacity ensure the slippers comfortably wrap your feet, and the one-third arc bending design makes it perfect to care for your feet.
😍ONLY $3.68
Check here 👉 bit.ly/3LpgBrW
... See MoreSee Less

View on Facebook

3 days ago

CjDropshipping.com

#dropshippingwinningproducts #winningproducts #pet #CJdropshipping
🔥Best 10 Dropshipping Winning Products | Trending Now
Check here 👉 youtu.be/WQ75inPcvzU
... See MoreSee Less

View on Facebook

6 days ago

CjDropshipping.com

#dropshipping2022 #ecommerce #Amazon
How to do Dropshipping Business Easier with CJ Plan 2022?
Check here 👉 youtu.be/W0xdX0JHPL0
... See MoreSee Less

View on Facebook

1 week ago

CjDropshipping.com

😍😍🧃🧃Pour any drink you like, like juice, etc., and squeeze it. In only 2 minutes, you get a smoothie. ONLY $3.73😍
Check here 👉 bit.ly/3yxDYfO
SKU: CJJT1217855
... See MoreSee Less

View on Facebook

1 week ago

CjDropshipping.com

🎉Gold four claw earrings are classic and elegant, nobody will miss them.
😍The classic cuff stud earrings bring sparkle, style, and luxury.
Check here👉https://bit.ly/3L3Jvxv
... See MoreSee Less

View on Facebook

1 week ago

CjDropshipping.com

🧐If you are tired of razor cuts, painful waxing, or expensive lasers? This hair eraser is for you! It exfoliates dead skin and improves your skin tone.
👏👏Using microtechnology to gently remove hair on the surface it comes in contact with, simply by just gliding the magic hair remover surface onto the skin.
Sell it Now 👉 bit.ly/3yqXT01
... See MoreSee Less

View on Facebook

1 week ago

CjDropshipping.com

#dropshippingwinningproducts #winningproducts #camping
🔥Top 10 Hot-selling Outdoor Dropshipping Products | 2022 May
Check here 👉 youtu.be/R_CUIbt-cpQ
... See MoreSee Less

View on Facebook