Survey: Fixed cost or calculated--which do you prefer?

dccollectibles · Posts: 2761

There's a point, free from the matrix and calculated, we would be able to do that. The irony here is that we had the system set up exactly like this many moons ago--the first time! But we weren't getting combined orders, so went with the matrix and then calculated to accommodate that. The further irony--it made no difference. So waiting on just a little more data and we're probably going to end full circle. I guess the moral here is there is no perfect shipping solution, just priorities. Hopefully this object lesson helps others.

cosmicray · Posts: 7286

I think something needs to be clarified here (w/r/t to what I posted just above) ... There really are only 4 kinds of shipping. Which one you select, and how your target customer perceives it, is the real story.

The 4 shipping pricing methods are ...

1. Fully Subsidized.

2. Partially Subsidized.

3. Not Subsidized.

4. Negative Subsidized.

In Fully subsidized shipping, you are paying the entire cost of shipping out of your pocket (or the gross revenue on the sale, how ever you want to look at it). Shipping is shown as "Free" on the listing.

In Partially Subsidized shipping, you are displaying a shipping cost that is under your cost, but not free. You are making up the rest. Depending on the item, and the rate displayed, you might actually break even or make some money, where the zone rate varies from one destination to another. I also sometimes think of this as a blended rate mode.

In Not Subsidized, you are letting the USPS Calculator display a rate, based on the zone difference between the shipper and the destination, and the class of service(s) offered, and which one the buyer picks. You might actually come out ahead a few pennies, because the customer sees the retail rate, and you're using the electronic rate. For customers in zone 8, they will see substantially high shipping, so beware of adverse customer reaction.

In Negative Shipping, you are making more on the shipping than it costs you to ship (in most cases). You may choose to do this because the price of the item to be sold is abnormally low when compared to the cost of shipping. This is how my LEGO parts store is setup. But the price of shipping is fixed for the first 8 ounces, so as the order size grows, the shipping holds the same (until it trips to the 1-pound level). With larger order, I make my profit on the parts, instead of the shipping.

For each of those 4 methods, you have to determine how you are going to pay for the shipping, and how the customer is going to perceive it. Different customers will look at the same thing and think different thoughts, so beware.

MoonwishesStore · moderator Posts: 17389

tigercreekgifts · Posts: 6293

myoldejunque · Posts: 186

I use the fixed price shipping. As another person stated earlier, I sell items at a variety of weights and sizes, and ship via a variety of methods. When people purchase multiple items and I can combine them in one package, I refund the overage in the amount paid versus the actual shipping cost. I've never had any complaints.

Five-And-Dime · Posts: 159

Matrix is good for me

elpereles · Posts: 3430

I understand the problem dccollectibles is facing. He has items that can fix inside an USPS Small Flat Box to items that need to be send in "custom" boxes.

Until last year. I was using "Fixed Price" because I never took serious time to solve my Shipping Matrix issue. Also lets not forget eCrater ambiguous intention to avoid any update to the shipping system of the site.

I use the Matrix and it is lets headache for S&H and less time spent sending refunds. I made it works very well to a specific point based on shipping supplies (boxes) used to ship.

auntiem · Posts: 29

I like fixed cost. When selling antiques and collectibles, you just estimate the item and insurance. Calculated shipping might work for a store that sells a lot of the same item. Antique sellers usually have an inventory of 'one of a kind's.

thecheapskirt · Posts: 2123

Four of the drawbacks to using calculated shipping on ecrater are:

You can't use Googke Checkout coupon codes (a non-issue after November of this year anyway)

You cannot ship to APO addresses via PayPal (already suggested to be fixed by SheilaDee years ago but never addressed by ecrater).

Shipping cost is not prominently displayed until checkout. (I imagine this is why I have many abandoned orders in my store where all items are over 2lbs.)

You cannot include UPS or FedEx as choices, which are often cheaper for heavier packages.

With that said, I've used it for 4 years in one store (not this one)

cosmicray · Posts: 7286

thecheapskirt · Posts: 2123