How to Design an Effective Shipping Pricing Strategy for Your Business

You have finally opened your online business and ventured into the endless possibilities of eCommerce. The days you spent thinking of the best product to sell, how to market it, and optimize your listing are now in action.

You have already received a couple of orders, but you want to be prepared for the hundreds of new customers you could gain. You’ll need a solid, sustainable, and effective shipping pricing strategy.

This article will highlight some tips to help you ace shipping prices for your growing business. Let’s start!

Tip #1: Know what shipping companies consider when pricing

Package weight and dimensions, value, and destination are among the most common considerations shipping companies consider when determining the shipping rate.

Weight and dimensions: Your shipping pricing should begin as early as the product planning stage. In the product brainstorming process, you should keep in mind the benefits of a product conveniently shipped locally or internationally. After that, ensure that you are packing efficiently. Here are some tips:

  • If you are shipping small products, check if you can ship them within a padded envelope instead of a box.
  • If sending a couple of products, maximize the box space by leaving no empty area.
  • Check different packaging materials like boxes, plastic bags, seals, or paper, and other stuffing materials. Choose materials where you can save and pack your products safely.

Shipping companies check the dimensions of the product versus the dimensions of the packaging. Save the cost by packing in boxes and envelopes that are not significantly bigger than your products.

Value of your shipment: Most shipping companies ask for the shipment value as a form of insurance. Suppose your shipment gets damaged in the shipping process, the shipping company will reimburse you depending on the terms and conditions you signed on.

Destination: Another usual consideration of shipping companies is the destination. The shipping rate is directly proportional to the distance the package must travel. Some companies offer table-rate shipping or charge a fixed rate despite the distance. Having a shipping partner that provides the latter would be best!

Tip #2: Know the shipping options you have

Choose between standard or express shipping when you deliver locally or internationally. A cheaper option is going for standard shipping. Still, you have to be keen on your shipping calendar to ensure that your shipment will reach your customers on time despite the slower delivery.

Express shipping ensures timeliness if you have to ship something in a rush, but it will cost you much more. Indeed, express shipping is not a thrifty sender’s choice.

Suppose you are selling on Amazon, the eCommerce giant. It would be best if you considered Fulfillment by Amazon (FBA), which can positively affect your conversion rate.

Tip #3: Know what your customers want

After looking into your options, it is now time to put yourself in the shoes of your customers. What kind of shipping are they looking for?

According to studies, free shipping is a big hit in all generations of shoppers. Older shoppers demand it at all costs. Meanwhile, younger shoppers are open to being charged for more expensive items, but they also favor free shipping for items lower than US$ 50.

Amazon has a Prime Membership option, which enables buyers to avail free two-day delivery. More than the speed of delivery, the assurance that the delivery will be under Amazon increases the shipping type’s credibility.

In a nutshell, free, fast, and credible delivery options are the top factors checked by buyers. Look into how you can incorporate these within your business model while maintaining profitability.

Tip #4: Have a team of experts

After considering the above for your shipping needs, consider a team of experts to help you set practical and financial goals and enact them.

Advertising and Marketing: The marketing and advertising team will ensure that your customers will see the highlights and benefits you bring with whatever shipping method you choose. Advertisers use many digital marketing tactics to create compelling ads.

Customer Service Team: The cost and delivery efficiency are the primary factors affecting customer decisions when buying your products. However, if you want to turn one-time customers into patrons, provide unparalleled customer service.

Packing experts: The packing experts will ensure that you are within the lowest threshold of the shipping dimensions to have the lowest shipping rate. You can count on this team to be well-versed in the terms and conditions of the shipping company you’ll be partnering with. They will know the workaround to achieve the lowest shipping rate.

Local and international shipping experts:  The terrain is more familiar in local shipping. You will only deal with local tax rates and regulations. However, when you begin shipping internationally, the process becomes more complicated as you’ll need to deal with the country Bureau of Customs. Having the right people can make methods progress faster and smoother.

Many shipping companies offer pick, pack, and send services and handling of Customs and Borders processes. It would be best to look for partner shipping companies who have these kinds of services so that you can delegate the tasks to them.

Tip #5: Do Market Research

The only way you know the best shipping company is via research. To get started, you can look into a shipping guide to the USA from Canada and vice versa. Remember these five things before you sign for a partnership:

  1. Going for the big names in the shipping industry is assuring. Giving sprouting shipping companies offering lower shipping rates or with more service inclusions a try is worth it.
  2. Compare the prices and services being offered. Check which company offers more at a low cost or offers a price equal to the value of their service.
  3. Check the companies that allow you to integrate your online store into their shipping database for continuous and convenient shipping, tracking, and billing.
  4. Be like your customers who check social proofs. Look for reviews and feedback within and outside the shipping company’s website.
  5. Should you look for total convenience, look for organizations that offer packing, picking, and shipping. With this, you can focus on your business and customers and leave all shipping tasks to your partner shipping company.


To design an effective shipping pricing strategy, you need to dig into shipping rate computation details. It would help if you also got to know your customers, so you’ll have a view of what their demands are. You can produce the type of service your customers are looking for, so you can catch their attention.

After these, you can look for the best shipping company that fits your needs. Once you find one, together with a solid team, your eCommerce business is in good hands.

About the Author

Diana leads the growth marketing initiatives at Stallion Express, Canada’s #1 eCommerce shipping company offering the best rates for US, domestic & international shipping. As a personal trainer turned digital marketer, Diana is obsessed with equipping online sellers with everything they need to scale their online businesses.

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