How do you calculate your delivery rates?
Calculating your delivery rates is essential if you have an e-commerce site. Offering a fair price, both for you and your customers, can improve their shopping experience while protecting your margins.
In this article, we'll take you step-by-step through the process of calculating your delivery costs clearly and efficiently.
Two ways to set delivery parameters
Calculate your delivery rates according to geographical area
A simple way to set delivery parameters is to define a fixed price per delivery zone. To do this, simply define the reference weight of a typical parcel and associate a fixed price per delivery zone. For example :
France: €10
Europe: €15
Rest of the world: €20
Here, the cost of your delivery is an estimated "flat rate" based on the weight of your "standard" parcel.
2. Calculate your delivery charges according to the weight of your parcel
If you sell both light and heavy products in the same store, you can't anticipate the weight of your packages. You'll need to consider the exact weight of the order. This means knowing the weight of each of your products, and specifying it in each of your product sheets. This will enable you to estimate the total weight of your customer's order and set your delivery rates accordingly. For example:
Parcels between 0 and 1 kg:
France 5€
Europe 15 €
Rest of the world 20 €.Parcels between 1 and 2 kg:
France 15 €
Europe 25 €
Rest of the world 30 €.
Tips and tricks to read before setting up your delivery
Understanding your real costs
Before setting your rates, start by identifying all the costs associated with delivery:
Carrier charges: check the rates according to weight, dimensions and destination to choose your carrier.
Packaging: cardboard, envelopes, padding and other protective materials.
Additional costs: insurance, parcel tracking, or additional taxes for certain countries.
Be careful not to underestimate these expenses. Even small costs (like labels or tape) can add up and impact your profits!
2. Choosing a pricing strategy
There are several ways to optimize your sales through delivery rates. It's up to you to choose the one that best suits your business:
🎁 Offer free delivery over a certain amount: This option strongly appeals to customers and improves the conversion rate, but it requires you to integrate the charges into the price of your products or absorb them.
📦 Simplify the purchasing process as much as possible with simple pricing: Simple pricing is easier for your customers to understand. To simplify your delivery rates as much as possible, we advise you not to offer too many different options. Maximum one express rate and one standard rate per zone.
🚚 Break down your rates by similar zones: This method involves grouping countries into zones with similar delivery rates. For example:
Zone 1: France and countries close to France with similar delivery rates.
Zone 2 : European countries with low delivery rates
Zone 3: European countries with high delivery costs
Zone 4: Far-off countries such as Canada, Australia, etc.
In this way, your customers pay a price adapted to their location, without you needing to set a price for each country in the world. To find out how much it costs to ship a parcel to different countries around the world, and set up your zones, go to https://www.laposte.fr/tarifs-postaux-colis
3. Competitive analysis
Your rates must be competitive. First, do some market research to understand what your competitors are offering and what works in your sector:
Do they offer free delivery?
Do they charge a single rate or do prices vary by region?
This analysis will help you adjust your own rates to remain attractive while preserving your margins!
4. Test and adjust your rates
Once you've set your prices, monitor their impact on your business:
Your margins: do delivery costs impact your profits?
Your conversions: are your customers hesitating because the fees are too high?
Your customer feedback: do they consider your prices fair?
Don't hesitate to adjust your prices after a few weeks, or even test different approaches to identify the one that works best for your store.
5. Simplify the Customer Experience
To win over your customers, you need transparency and clarity:
To avoid surprises, display the charges on the shopping cart page.
Indicate estimated lead times clearly.
Offer several options (standard, express) to suit different needs.
A well thought-out, unambiguous delivery process boosts customer satisfaction and may even encourage repeat purchases.
Conclusion: find the balance between profitability and customer satisfaction.
Setting your delivery rates means striking a balance between satisfying your customers and protecting your margins. By remaining transparent, flexible and attentive to your market, you'll find a formula that works for you and your customers.
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