Consumers’ appetites for buying furniture online is growing, due in large part to Americans’ increasing comfort with buying oversized items online. At the same time, shipping costs now play a significant part in their decision about when and where to buy.
In the booming furniture and home furnishings market, the importance of setting a shipping price strategy can’t be overstated. It’s critically important to your ability to remain competitive as an online seller of both new and used furniture.
But zeroing in on the right shipping rate approach can be challenging.
For example, a free or low flat-rate shipping price is customer-friendly but may require the seller to cover or subsidize delivery costs, cutting into margins. On the other hand, displaying high product prices with shipping costs baked in can turn off potential buyers.
When it comes down to it, the right delivery pricing approach is not one-size-fits-all. It requires thoughtful consideration of various aspects of your specific business.
Here are four factors that should weigh into your approach to furniture delivery pricing:
· Average sale price — Your customers’ willingness to pay for shipping may depend on the amount they’re spending on their purchase.
· Target buyer — Who is your target demographic? Be sure to think about their general willingness and ability to pay for shipping.
· Product uniqueness — If your products are hard to find or one-of-a-kind high-end antiques, you might price shipping higher than if your product is mass produced and easily purchased elsewhere.
· Business goals — Depending on how you approach delivery pricing, you may be able to move the needle on business performance indicators such as conversion and cart abandonment rates.
As you think about these factors, you may find that one area is more significant for your business than another. You also may find that it makes sense to have more than one pricing strategy depending on the product being purchased.
No matter what approach you take to shipping pricing, keep in mind that your products and your customers’ expectations likely will change over time. Plan to evaluate your strategy often, and be open to changing it as your business evolves.
Learn more tips and tactics for setting a delivery pricing strategy that works for your online furniture business:
Download the paper, Four Shipping Price Strategies for Your Online Furniture Business.
Still not sure which pricing strategy is right for your business? Take our quiz to find out.