P&P or not to P&P

[sabus]

Hi all

Im in the process of launching a e-commerce site, stock arrives next week! However I cant decide if I should:

a) Price goods cheaper and add P&P
or
b) Factor P&P into the sale price.

My average product price will be £3-5

Opinions much appreciated.

 

[kulture]

What is your actual postage cost?

What do your competitors do?

 

[David A]

Even with the £3 - £5 product price band, much will depend on margin. Plus considering if customers will be buying single items of multiples.

If the item sold is £1 or less, then including P&P is workable. If your margin is only 20%, then including P&P could break you.

 

[Rhyl Lightworks]

Although our average price is more in the region of £20, iIn an effort to test this, we have 2 websites; one where P&P is included and another where it is an extra £2 on the price. Although some items are cheaper even when P&P is added to the cost on the latter website, the former website invariably does better. There may be other factors involved, but it seems to me that including P&P in the price pays dividends. Some people expect to pay P&P anyway and don't seem to care what it is, but if I am buying from a site, I always find the total cost inc. P&P and for the same product and I buy from the cheapest inc. P&P.

Whatever you decide, make sure you are upfront about it. There is nothing worse in my opinion, than having to go to the checkout to find out what P&P is. Wher P&P is included we always cut and paste the following message on each product:
'There is no delivery charge with this product, in the UK and EU, but please
contactus outside these regions.'

Barrie

 

[SBOnline]

I would agree with the previous posts.

Given that your price point is already low, as a consumer I would expect to pay postage. Maybe you could make postage free for orders over £25.00 or something!

Good luck with the site.

 

[sabus]

I've managed to work out that postage on average will cost me 90p, for launch I think I will go with P&P included and assses on a weekly basis.

 

[derbyo123]

Add it on at the checkout - I have tried both over many years and it works