How to Prepare for Shipping Rates Changes During a Seasonal Rush | MoreCustomersApp

How to Prepare for Shipping Rates Changes During a Seasonal Rush

shipping rate for online store

Every business has a running cost and one should keep a watch on it even for the smallest change in it. Shipping carriers like USPS, FedEx, or UPS review their pricing every year and especially during festive seasons and make adjustments to their shipping rates based on fuel costs or industry standards. Hence, you can too expect some changes to your shipping costs which might affect your shipping and pricing strategy during festive seasons.

We’re here to help you optimize your shipping or courier strategy in light of these changes.

Optimizing your shipping rates largely depends upon your existing shipping strategy like Free, Flat, or Customized, and accordingly, you can take a different action to adjust them.

Free Shipping Options
If you want or offer free shipping here are some suggestions available:

  • No Change Needed – If you want to continue offering free shipping to your customer base, you’ll need to absorb the increased cost of shipping or courier rates from your shipping provider companies once they change the rates. Before you continue this option make sure you are aware of your margins and you are still profitable in the festive season due to an increase in shipping costs.
  • Increase Product Prices –If the first option is not good, you can increase the product prices to keep your profit margin and cover the increased cost of shipping. However, keep in mind your repeat customers would know the increase in price and could impact purchase frequency.
  • Introduce Free Shipping Slabs –This can be considered as a perfect fit between doing nothing or increasing product price. You can charge shipping costs from your customers if they don’t fall in the free shipping slot on their order value. In this way, your profit margins will also not be affected by doing nothing and your customers would be happy to have the same product prices during the festive period.


Flat Rate Shipping Options
If you want to offer a flat rate, here are a few options.

  • No change needed – If you want you can continue to offer the same Flat rate as you were having earlier. Your profit margins will be directly affected by any fluctuation in the shipping costs.
  • Increase Product Price –Like Free Shipping, you can increase product prices in your online store, but it will directly affect to your existing customers as they will notice it and it might impact purchase frequency. Too much fluctuation in product price create a trust issue and directly impact your sales.
  • Flat Rate Shipping Slots on Order Value – You can adjust your Flat shipping rates based on the customer’s order value. This option gives you the flexibility to choose different Flat Shipping Rate Slots. For eg if the order value is less you can keep higher rates and vice versa. This process might offset any fluctuation in changing shipping costs by shipping companies and do not hurt your margins during the festive period.
  • Increase Flat Shipping Rates –Increasing courier charges have similar effects on increasing product prices. If you use this option you need to keep a check on your abandoned checkout cart notifications. Shipping cost is one of the most common reasons for customers to abandon their shopping cart, hence you need to have a strong recovery email or follow-ups for such visitors.


Customized Shipping Rates
If you want you can choose this option for premium products in your Online Store.

  • Last Moment Shopping Deals – There are many visitors who shop at the last moment, and hence need delivery either on the same day, or the next day or fastest possible. In order to cater to such customers who are willing to pay higher rates, you can easily charge them premium shipping rates. It will not affect your profit margins due to increased shipping slabs.
  • Calculated Shipping Rates –Depending upon your business model, you can introduce this option where customers pay depending upon the price of the product they buy or location they want the order to be delivered, or order value. This option will give you the flexibility in handling fluctuation in shipping cost from companies.


If none of the above-discussed suggestions fit your shipping or pricing strategy, your margins and sales rate then it is time to consider a new testing model who offers such options. It is time to move to a service like MoreCustomersApp who takes care of your Online Store during seasonal periods.

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