I read this in a business site. If you're thinking about offering your customers free shipping and handling, think very carefully before making your final decision.

Offering free shipping can be a good idea for certain businesses, but it really depends on the kind of products you're selling and how much you're charging for them.

Typically, the best way to deal with shipping and handling fees is to charge just enough to break even on your costs. If you overcharge your customers, you'll scare them away. But if you charge too little, you'll end up running your business right into the ground.

Some businesses think that by artificially inflating their shipping and handling costs, they can really boost their profits. But they're seriously mistaken: They might dupe some customers into paying the inflated costs, but they won't fool most people. And they're killing their chances of getting any positive word-of-mouth advertising or repeat business.

The truth is, high shipping fees are traditionally one of the major reasons people decide against purchasing products online. Today's online consumers tend to be a lot savvier about the true costs of shipping and handling than some businesses might think. Most shoppers pay careful attent

ion to these costs, and if they think they're being overcharged, they just won't buy.
When trying to determine whether or not to offer free shipping, consider your products carefully. Ask yourself these questions:

1. How much are you charging for them? 
2. What kind of profit margins do they yield?
3. How big and bulky are they? 
4.  Most importantly, how much do they weigh?

If your business sells lightweight products whose shipping and handling costs are relatively low, then it might be a good idea to offer free shipping and handling?provided that the markup on the products is large enough for you to be able to absorb the shipping costs without losing too much of your profits.

For example, say you sell custom-designed jewelry at a relatively high profit margin. Your shipping and handling fees probably aren't very high, so you can absorb them into the price of the product without doing too much damage to your bottom line.

If, on the other hand, you sell something that's heavy and awkward to ship, such as bark mulch, your shipping and handling fees are going to be significantly higher. If you have an enormous markup on your products, you may still be able to absorb the shipping and handling fees into the products' price. But it would probably make more sense to charge separately for shipping and handling so that customers can see exactly how much they're paying for the product.

Customers generally appreciate being told exactly how much they're paying for all the goods and services they receive when purchasing something online. When you keep the shipping and handling costs separate, they can see you're not overcharging them for these services. This also allows you to highlight the true price of the product you're selling, which is especially effective if one of your marketing strategies is to offer incredibly low prices for the products you sell.

One of the major benefits of keeping your shipping and handling fees separate from the price of your product is that you can offer different delivery options to your customers. This can be a great selling tool. Customers buy products for different reasons. Some don't mind waiting a few weeks until they receive their products. Others want them yesterday! If you offer a range of shipping options, you allow them to choose what delivery method works best for them. Generally, it's a good idea to offer regular surface delivery as well as express delivery (shipping that takes just 2 to 3 days) and overnight delivery.

If you do choose to offer free shipping and handling, don't forget that not all shipping and handling costs are the same! Even if you offer only one shipping option to your customers, costs will vary greatly depending on how far you're shipping the item. If you end up sending your products across the country or to a different continent, your shipping costs will add up quickly and your profit margin will be lost.

Be sure you understand just who your target market is and where the majority of your customers are having their orders shipped before you make any rash decisions.
Also be sure not to over-inflate the cost of your products to compensate for the absorbed shipping and handling fees. Your prices have to remain competitive if you don't want to lose customers to someone who's offering better deals. Also, customers might correctly guess that you've just folded the shipping and handling costs into the price of the product, which might make them feel like they're being manipulated. And customers that don't trust you won't buy your products.

Finally, if you're considering offering free shipping but will have to raise the price of your product to do so, be sure to test both options! Does your market respond better to the lower price point, with shipping factored in separately, or do they find the offer of "free shipping" more appealing? If you let your customers tell you which pricing structure they prefer, you won't go wrong.

Replying to [darkfox133]:

Thank you. Its good to know that other people have the same method of doing business. I feel SO much better, knowing that I am not the only one thinking as such. I give my clients the option of method of shipment AND give them a copy of the quotation so they can see I do not put up any markup on it.

Please write again.

Replying to [darkfox133]: Good article. As I believe, shipment charges i.e. freight and insurance should be charged on an actual basis but seperately. It has two advantages. One, your buyer knows how much is the actual cost of the products (FOB prices) and how much other costs. Secondly, at the time of paying duties and taxes, buyer will be required to pay only on the FOB value and not the shipping and insurances. Some countries charge duties and taxes only on the FOB values of the consignment. This way buyer will be saved from paying anything additional unnecessary.

Replying to [darkfox133]:Good article !You have a clear mind about shipping fees ,you are a good business man !You analysis the point of view from different of view point ! have a nice day !

Replying to [darkfox133]:
good work!!!

Replying to [darkfox133]: Nice reading and helping those who is dealing with finishes consulmer goods.

Replying to [darkfox133]:

Thanks for your valuable article.I am working for a reputable logistics company now and I totally agree with you.Sometimes we even suggest some customers to offer free charge of shipping fees but sometimes we will try our every effort to deduce shipping costs for customers as the shipping rates are relatively high according to their product valua.

hanks for detailed analysis! I sometimes feel puzzled by this problem. besides I wonder how and where we can find good shipping rate

Replying to [darkfox133]well you definetly know your if's and but's.im wondering if you can possibly help me on a slightly different bassis,i have 2 different products i wish to import from india to england.(1)how can i find out about shareing a container.(2)how do i actually begin because my customers are ready.i know nothings free in life apart from advice and wisdom but please please could you help me as you know so much at;inder_chuhan@hotmail.com

Great article!

Replying to [enter]: ask you local forwarder for rates, or you can have the seller quote you CIF price.

Replying to [richardshu]:thanks for your reply,sorry to sound so green but i am just starting in this new field,so how do i get hold of a forwarder is this in england or india.i like to know what i am talking about before saying,so what is cif.are you currently importing or exporting.thank-you