Merchant Shipping Guide

Shipping Guide

Shipping is among the most important decision points for you to make for your online store at ShopClues.com a big success. Online shoppers want right item, at right time, in right quantity/color/size, in a good quality packaging, low or no cost for shipping, and finally open communication around shipping and delivery statuses etc. So make sure that you think thoroughly while deciding shipping.

Step 1: Basic philosophy for shipping

• Customers price for a product is product price plus shipping charges (in case of paid shipping) and just the product price (in case of free shipping)
• Shipping cost is assumed by customer (in case of paid shipping) or seller (in case of free shipping) and not by ShopClues.com. However, ShopClues.com offers the most competitive shipping pricing and seamless experience to the sellers.

Step 2: Free vs. paid shipping

In our view, Free Shipping works great as long as the profit margins in your business can support it. You do not want to price your item too high and then offer free shipping, because you may loose competitiveness in pricing. But we strongly encourage that you consider offering free shipping.

Step 3: Shipping drivers and components

Drivers for shipping cost: Shipping cost varies based on: weight, destination, dimension, mode of payment (prepaid vs. COD), value of the item, standard vs. expedited, air vs. surface, and any special handling such as gift wrap or fragile etc.

Component of shipping charges: Packaging material, pick from seller location or delivery at dispatch center, pack, ship and optional insurance

Step 4: How you can use shipping to attract more business

As mentioned earlier, free shipping is an effective marketing and promotional tool online for sellers to attract more business and repeat buyers. Here are some examples of how you can offer free shipping or subsidized shipping:

• Free shipping for all products
• Free shipping for certain products
• Free shipping for certain occasions
• Free shipping after a certain price point and paid below that price point e.g. free shipping for item Rs. 500 or above
• Free shipping for some time as promotion or to boost your business
• Free shipping for certain quantity
• Paid shipping but subsidized e.g. charging Rs. 25 for shipping, whereas the total cost for shipping may be Rs. 50 or Rs. 60.

For heavier items and bulky items e.g. more than 2 Kg and more than 2 feet in longest dimension, you can opt for surface shipping option. The benefit is that it is cheaper but downside is that delivery time is longer.