Create a Smart Shipping Strategy that Drives Sales

eCommerce experts agree that the cost of shipping is arguably the biggest factor a shopper considers before hitting the “Buy Now” button.

As an online retailer, working to optimize your shipping strategy and costs should be a top priority.  Low shipping costs to the shopper means more orders for you, so it’s worth taking a little extra time to ensure this experience is as good as it can be.

Here are a few tips for creating a shipping strategy that helps you drive sales on OpenSky.

1) Take advantage of discounted shipping rates via the OpenSky/Fedex Alliance.

Use OpenSky’s exclusive partnership with Fedex to receive up to 30% off your Fedex shipping costs. Include code: VJ8HDM to claim your discount. Learn more about our Fedex partnership here

2) Utilize Tiered Shipping

Tiered shipping is a way for you to provide shipping discounts for every additional item a shopper adds to their shopping cart.

Tiered Shipping is set up when you first create a product, and can be edited at any point via your Merchant Toolkit. Tiered shipping has two elements that you must enter on all listings – a Primary Shipping Cost and an Additional Item Cost.

  • The Primary Shipping Cost is the amount a buyer pays when the item is shipped on it’s own.
  • The Additional Item Cost is the amount added to the cart of a shopper when items are purchased and shipped together.  Additional Item Costs apply when a buyer purchases multiples of the same product or different products from you at the same time.

Here’s an example:

  • Item 1
    • Primary Shipping Cost = $8.00
    • Additional Item Cost = $2.00
  • Item 2:
    • Primary Shipping Cost = $7.00
    • Additional Item Cost = $1.00
  • If Item 1 and Item 2 are purchased together, the total Shipping Cost to the buyer is $10.00. We use the highest primary Shipping Cost and it’s specified Additional Item Cost.
    • Primary Shipping Cost: $8.00 (higher of the two items)
    • Additional Item Cost: $2.00 (specified Additional Item Cost associated with the Primary Item)
  • If three of of Item 2 are purchased together, the total combined shipping cost to the buyer is $9.00. Here’s how it breaks out:
    • Primary Shipping Cost: $7.00
    • Additional Item Cost: $1.00 (2 items ordered) = $2.00
    • Total Shipping Cost: $9.00

Over charging on shipping may help you make quick cash but it will deter more and more fans from becoming buyers. Make it easy and create an incentive for an OpenSky member to buy multiple items from you at one time.

You can set up tiered shipping via the standard Product > Edit functionality in your Merchant Toolkit.

Screen Shot 2014-03-07 at 4.09.00 PM

Read more about tiered shipping here.

3) Bundle products to reduce shipping costs

Some Merchants are able to subsidize shipping on high priced products when they have more margin dollars. (i.e. when it costs $5 to ship an item that sells for $100, Merchants usually offer free shipping). If you have lower priced products, try bundling them together in order to increase the order value. Once the order value is high enough, give the customer a break on shipping by reducing the cost or shipping it for free. Reward a customer for spending more money with your brand. It’ll pay off in the long run.

Read more about bundling products here.

4) Opt-in to OpenSky’s Rewards Free Shipping Program

Visit the Promotions tab in your Merchant Toolkit to opt-in to the Rewards Free Shipping Program. When opted in, you will automatically participate in any sitewide free shipping event that’s planned by OpenSky (these happen only once or twice a month). These free shipping events drive a sizable lift in sales volume, and give more exposure to brands/products that participate in the Free Shipping Rewards program.

Learn more about our Credit and Free Shipping Rewards Programs

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