3/29/2006
Shipping as a Percentage of Order Total
In a conversation recently with a new ecommerce site client we were discussing how they planned to charge for shipping their goods. The client postulated charging customers shipping based on order total. This brought to mind a recent shopping experience at Crate and Barrel.
Crate and Barrel has a remarkably clean and easy to use site. Anyone wanting to know how to do an ecommerce site correctly, could learn a lot from their site. My only problem is their method of charging for shipping could be eating into their cart totals.
On my order, I had selected some kitchen toys and a few additional dishes I needed. With one set of refrigerator containers I thought it might be nice to have two sets for those weeks when running the dishwasher might be a stretch. Great! Order total: $54.90. Login to my account, select basic shipping option. Whoa! Shipping is $11.50 on a $50 order! That seemed a little expensive for the handful of small items I was purchasing. Shipping info, click. Ahhh, shipping cost is based on order total value. Less than $51, shipping is $8.50, over it jumps up to $11.50 and continues on up from there.
I hit the handy back button, remove one set of refrigerator dishes from my cart and check again. Shipping is now the quoted $8.50 for an order less than $51. Finalize the order and we are done.
Do you see what just happened? They lost an extra sale based on their shipping quotation and I saved $12. What’s more, a thoroughly great shopping experience was slightly tarnished by the perceived overcharging on the shipping. Twenty-three percent of order total for shipping is a little much.
I know some vendors use inflated shipping and handling to fees to help kick in a little extra for overhead, but I wouldn’t expect that from a tier one site like this. I really doubt this is there intention either. This is just how some decided they would set shipping charges. But, the perception is still there, and online, perception is all you have.
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