According to Article 510 of the Civil Code of the Russian Federation, under a supply agreement, the goods are delivered to the buyer by the supplier. The obligation to transfer the goods to the buyer can be considered fulfilled at the moment of placing the valuables at the disposal of the buyer, the person indicated by him or at the time of delivery of the cargo to the carrier (clauses 1, 2 of Article 458 of the Civil Code of the Russian Federation). Let's consider possible options pricing.
The price of the product includes delivery costs to the buyer
Since the contract price of the goods includes the cost of its transportation, in primary documents and invoices the cost transport services not indicated separately. At the same time, the cost of delivery actually increases VAT, because it is paid from the final price of the goods (taking into account its transportation) (Clause 1 of Article 154 of the Tax Code of the Russian Federation).
For profit tax purposes, the supplier’s income recognizes revenue from sales, which is calculated on the basis of all receipts associated with goods sold, excluding VAT (clause 1 of Article 248, clause 2 of Article 249 of the Tax Code of the Russian Federation). Therefore, revenue from the sale of goods includes its full cost, which is formed taking into account the price of delivery. At the same time, the costs of delivering goods to the buyer are taken into account by the supplier when taxing profits as part of expenses associated with production and sales (subclause 1, clause 1, article 253, article 320 of the Tax Code of the Russian Federation).
True, in the opinion (letter dated March 19, 2007 No. 03-03-06/1/157), the costs of delivering goods can be included in material costs only until the transfer of ownership of the goods to the buyer. Therefore, if the supplier delivers the goods to the buyer’s warehouse, the ownership of the goods under the terms of the contract should not pass to the buyer before the date of transfer of this goods to him at the warehouse.
The price of the product does not include the cost of delivery to the buyer
If the seller does not include transport costs in the price of the goods, but uses transport organizations to deliver it to the buyer, then the contract with the buyer must stipulate that the seller, in terms of transport services, is an intermediary between the carrier and the buyer. In this case, the purchase and sale agreement between the seller and the buyer will contain elements agency agreement by type of commission since the seller acts on his own behalf when organizing delivery.
If the amount of remuneration for delivery is specified separately in the contract (in addition to the price of the goods), then for the seller it is income from the sale, just like the proceeds from the sale of goods to the buyer. Other amounts received by the supplier to fulfill obligations to organize delivery are not recognized as income for profit tax purposes (subclause 9, clause 1, article 251 of the Tax Code of the Russian Federation). Moreover, the supplier’s costs for delivering goods are not taken into account for profit tax purposes - they are taken into account by the buyer. Therefore, the supplier, fulfilling its obligations to deliver goods as an agent, is obliged to provide the buyer with documents confirming transportation costs:
- agent’s report (Article 1008 of the Civil Code of the Russian Federation) with copies of documents confirming the agent’s expenses (invoice, consignment note, invoices issued by the carrier);
- a certificate of completion of work and an invoice for the amount of remuneration (if it is provided for in the contract).
The basis for calculating VAT for an agent is only the amount of intermediary remuneration (clause 1 of Article 156 of the Tax Code of the Russian Federation). If the agent’s remuneration is taken into account in the price of the goods (not specified separately in the supply agreement), then only the cost of sales of the goods is subject to VAT.
The supplier records the invoice received from the transport organization in the journal of received invoices. It is not reflected in the supplier's purchase book.
The buyer compensates the costs of delivery of goods to the supplier.
According to the clarifications of the Ministry of Finance of Russia (letter dated March 10, 2005 No. 03-03-01-04/1/103), if, in accordance with the terms of the contract, the costs of the transport organization are reimbursed by the buyer, then these costs are reflected in accounting on account 76 “Settlements with different debtors and creditors." IN in this case the supplier does not provide services for the delivery of goods to the buyer, and therefore he does not have the obligation to charge VAT and present it to the buyer on the cost of transport services (subclause 1, clause 1, article 146 of the Tax Code of the Russian Federation).
If an intermediary agreement has not been concluded between the buyer of goods and the supplier to organize the delivery of goods to the buyer’s warehouse, then the supplier has no reason to issue an invoice to the buyer, which transfers the invoice indicators received from the transport organization. The basis for reimbursement of the costs of transporting goods will be a report from the organization with attached copies of transportation documents issued by the transport organization to the supplier.
Disagreements in this case arise when qualifying income and expenses in tax accounting.
Letters of the Ministry of Finance of Russia dated March 19, 2007 No. 03-03-06/1/157, dated October 3, 2006 No. 03-11-04/2/195 indicate: if the supply agreement states that the buyer compensates in excess of the price transportation costs, then the amount of compensation in tax accounting is considered the supplier’s income. At the same time, payment by the supplier for delivery of the goods will be an expense.
Note that some judges do not recognize such amounts of compensation from buyers for the delivery of goods as income of the supplier for tax purposes. And the amount of costs for the delivery of goods paid to the transport company and subject to reimbursement by the buyer is the supplier’s expense (resolution of the Federal Antimonopoly Service of the Central District dated July 31, 2006 No. A35-6168/04-C3, Federal Antimonopoly Service of the Northwestern District dated February 28, 2005 No. A05-6138/04-12).
Another problem is related to the practice of applying Article 162 of the Tax Code of the Russian Federation, according to which compensation by the buyer for the costs of delivering goods increases the supplier’s VAT taxable base as “other income related to sales.” The supplier must calculate VAT on the amount of such compensation at the estimated rate, issue an invoice in one copy and register it in the sales book. The buyer does not receive the right to deduction.
S. Khvostova,
Deputy - practitioner of LLC AKF “Expert Center “Partners””
Delivery in Moscow and Moscow Region:
- The order is formed within 1-7 working days from the moment the order is confirmed by the manager and/or 100% prepayment for the goods.
- Delivery is carried out within 1-5 working days from the moment the order is placed.
Delivery in Moscow:
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To the entrance of the house* |
Ascent to the apartment** (if there is a freight elevator) |
Manual lifting to the floor |
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Group 1. Total weight of goods up to 10kg, with a volume of no more than 0.1 m3*** (foot courier) |
for free |
for free |
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Group 2. Total weight of goods from 10 to 30 kg, with a volume of no more than 0.6 m3*** |
200 rub. / 1st floor |
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Group 3. Large goods; Product weighing from 30 to 150kg**** |
1,000 rub./100kg |
500 rub./1st floor |
*Delivery to the entrance of the house does not include unloading from vehicle companies in the entrance, hall, front door of an apartment building (cottage).
**Delivery of cargo to an apartment means transporting goods from a vehicle to the hallway of an apartment building. Delivery of goods to apartment rooms and floors of a private house is not included in the cost of the services provided.
***If the specified limits are exceeded, prices for the next product group apply.
****From 150kg for each subsequent 100kg additional payment of 500 rubles.
We also draw your attention to the fact that upon receipt and payment of the order, the buyer, in the presence of the courier, is obliged to check the contents and appearance products for the absence of physical defects (scratches, cracks, chips, etc.) and completeness of the package. After the courier leaves, claims on these issues will not be accepted.
If the buyer refuses the delivered goods, provided that they are of adequate quality, the delivery service is paid.
If the client refuses part of the goods and when returning goods of proper quality with the lifting service arranged, the lowering of the goods is carried out according to the tariffs for loading and unloading operations.
Delivery outside the Moscow Ring Road
Delivery of goods outside the Moscow Ring Road - 40 rubles. / km.
Delivery to regions of the Russian Federation, Belarus, Kazakhstan
- When delivering goods to the regions, you can use the services of any transport company. We cooperate with the company "Business Lines". All delivery payments are made directly with the transport company. You can view delivery rates athttp://www.dellin.ru/.
- Orders are generated and shipped within 3-7 business days after confirmation of the order by the manager, availability of the goods in the warehouse and receipt of 100% prepayment for the goods.
- From the moment the goods are received by the transport company, the selected carrier takes full responsibility for the safety of the goods. All shipments that we process are necessarily insured for the full amount. Upon receipt of the cargo, we ask you to check the goods for the absence of physical defects, damage to the packaging, completeness of the package, and compliance with the shipping documents. If there are shortages and transport damage, do not accept the parcel without drawing up a report with the transport company and initiating the procedure for insurance compensation for damage.
- All shipments we carry are carefully packaged to avoid transport damage. The transport company also provides additional packaging services. The sender reserves the right to provide additional packaging for the goods at the transport company's terminal if the cargo is fragile. This service is agreed upon in advance with the buyer and is carried out at his expense. If you have your own wishes for additional packaging of shipments, please notify our managers in advance.
- After signing the invoice for receiving the goods, the client agrees with the terms of delivery and the quality of the received cargo; further claims regarding the quality of the received shipment are not accepted.
- Upon registration of the shipment at the Business Lines shopping center, we send you by e-mail a documentary confirmation with the dispatch details, after which the client takes full responsibility for tracking the order and further communication with the shopping center.
- Our company does not deliver to TK terminals, including TK Business Lines terminals; all TK orders are independently picked up from our warehouse by self-pickup.
- In a situation where, for some reason, TC "Business Lines" does not suit the final recipient, an option is possible self-registration delivery taking into account the operating regulations of our warehouse. Our managers will provide all the necessary data for registration upon request.
Pickup from our studio in Moscow
Possible after confirmation of the order by the manager.
- Subject to availability in our warehouses, your order can be delivered free of charge to our sorting center within 1-5 business days.
- Pickup is carried out from Monday to Saturday from 12-00 to 19-00.
- On weekends and holidays on request.
Pickup is available only from the studio in Moscow.
HOW TO RECEIVE YOUR PURCHASE
To receive the cargo, the Recipient must have a document confirming his identity if the order is placed for a private person.
If the Buyer is a legal entity, the representative must have the original power of attorney. Without the original power of attorney, the goods can be received by a person registered in the Unified State Register of Legal Entities, as a person who has the right to act on behalf of a legal entity (the head of an organization) without a power of attorney. The right must be confirmed by an order of appointment to a position or an extract from the Unified State Register of Legal Entities. The leader must have a seal with him.
Upon receipt of the cargo, the Buyer receives the following documents:
Packing list,
- warranty card for electrical equipment.
+ Free delivery in Moscow within the Moscow Ring Road for order amounts over 30,000 rubles. and total order weight up to 100 kg
Delivery is carried out on weekdays from 10:00 to 18:00, within one to two working days, or on the day agreed with the Buyer.
+ Paid delivery in Moscow or to shopping malls in Moscow within the Moscow Ring Road for order amounts less than 30,000 rubles. and total order weight up to 100 kg
Delivery cost - 800 rub. Delivery is carried out on weekdays from 10:00 to 18:00, within one to two working days, or on the day agreed with the Buyer.
+ Paid delivery within Moscow or to shopping malls in Moscow within the Moscow Ring Road for total order weight of more than 100 kg
Delivery cost - 1500 rub. Delivery is carried out on weekdays from 10:00 to 18:00, within one to two working days, or on the day agreed with the Buyer.
Outside the Moscow Ring Road, delivery costs are calculated individually.
+ Paid delivery throughout Russia.
Free for orders over 30,000 rubles
800 rubles for orders worth less than 30,000 rubles
The buyer INDEPENDENTLY pays at the selected shopping center the cost of delivery of goods from the shopping center warehouse in Moscow to the shopping center warehouse in the city where the goods are received. We do not calculate the cost of delivery through transport companies due to the variety of conditions of transport companies. You need to independently contact the shopping center you have chosen to request a cost.
As a standard, we ship goods through the following shopping centers:
- Zheldorekspedition,
- Glavdostavka
- Baikal
- Business Line
We are ready to consider your request to send goods through any other shipping company, including Russian Post.
We also DO NOT recommend working through some shopping centers - due to the high risks of cargo safety, as well as our experience of interacting with some shopping centers. Our priority is the timely receipt of safe cargo by our customers.
+ Russian Post.
In case of delivery of goods by Russian Post, you pay product + delivery to the post office in your city.
The cost of sending from Moscow to your city is calculated individually.
Please contact the online store managers.
+ Get it in the office.
It is not possible to pick up your purchases from our office.
+ Pickup.
Pickup service NOT It turns out - for individual clients.
Pickup from the warehouse is possible: for those who have previously worked with us legal entities upon confirmation by the sales manager.
DELIVERY TERMS:
a) Delivery of all goods in Moscow and the Moscow region is carried out by the Company’s own delivery service.
b) Delivery to the regions is carried out using transport companies; dispatch from the TK Moscow terminal to the TK terminal or to the recipient’s door is carried out at TK tariffs.
c) The risk of accidental loss or damage to the product passes to the Buyer from the moment the goods are transferred to the Buyer or the transport company.
d) Delivery of goods in Moscow and the Moscow region is carried out “to the door”.
e) The delivery cost does not include testing and connection of equipment. You can use the services of the Company's Customer Service.
f) The driver delivers the goods according to the number of seats. In the absence of any goods, the Buyer, in the presence of the driver, draws up a Shortage Report.
g) Upon delivery of the order, the driver gives you the following set of documents: warranty card, delivery note.
h) Delivery is a separate service. It is not considered an integral part of the goods purchased by the Buyer.
i) Purchasing goods with delivery does not give the Buyer the right to demand repeated delivery of goods in the event of the need for warranty service or replacement.
j) The purchase of goods with delivery does not imply the possibility of returning the cost of the goods delivery service in the case where the Buyer has the right to a refund for the goods in accordance with the Legislation of the Russian Federation.
k) You can check the delivery date with the manager who placed your order.
m) The consignee of the goods can only be the person who paid for the order. If the consignee differs from the payer, you must fill out the details form and send it to us by e-mail - .
k) If you choose the payment method “cash upon receipt”, if the product does not suit you, the delivery service will be paid in any case.
*The Internet resource is for informational purposes only and is not public offer, determined by the provisions of Art. 437 of the Civil Code of the Russian Federation.
**Equipment is intended for use in entrepreneurial activity or for other purposes not related to personal, family, household or other similar use.
Store information:
LLC "T&T"
TIN 7603031763
OGRN 1057600302517
Actual address 125424 Moscow, Volokolamskoe highway, 88, building 8
www.site
According to research by American marketers, for 59% of online store buyers, the cost of delivery influences the purchasing decision, and 44% refuse to buy anything at all because of the high cost of delivery. Statistics show that most carts are abandoned at the payment stage, when delivery is also added to the cost of the product. Having reached this point, the buyer begins to doubt whether he really needs this product. If delivery is free, then most likely there will be no doubts. But not everyone can afford to deliver goods for free. And although this option is the most attractive for the buyer, even large market players charge money for delivery.
Boris Lepinskikh, director of the online store e96.ru
“The cost of delivery is affected by two important factors. The first is the cost of delivery. We know exactly how much the last mile in each city costs us. Second is the market. We look at how much it costs to deliver similar goods from our main competitors in the category (for example, furniture or large Appliances) and stand “no higher than the market”.
In general, when setting the delivery price, different situations are possible:
a) the cost of delivery in the price and the margin is enough - the coolest situation;
b) the cost of delivery is separate and then it practically covers our cost for delivery - also good;
c) various situations of “last mile subsidies”, when we are forced to reduce the cost of delivery “to the market” in order not to lose sales.”
There are only three delivery cost strategies: free, conditionally free and unconditionally paid. And each has its own pros and cons.
Free shipping
The most favorite option for buyers and the most unprofitable, at first glance, for the seller. But since humanity’s love for freebies is ineradicable, free shipping significantly increases sales.
According to statistics, 84% of online store visitors will choose a platform with free delivery for purchase.
Of course, sometimes it happens that the order cost is lower than the delivery price, but the overall sales volumes allow the company to survive such cases painlessly.
Dmitry Pokataev, head of the online store “Stoletti Kitchens”:
“It all depends on the store’s income; if the margin allows, then there is no need to scare off customers with an additional markup for delivery. Although it sometimes happens that one stool is ordered, it costs more to deliver it to the buyer than the stool itself. Of course, it’s a shame to pay for such an order out of your own pocket, but we have always put up with it.”
A free shipping for all strategy can be beneficial for a company that specializes in selling small and light items and for businesses with big amount repeat sales, for example, groceries, prepared food, water. Since there is no need to spend money on attracting new customers, it can be redistributed to pay for delivery to existing ones.
Conditionally free delivery
Strategy 1: from check
Most often, free delivery has some conditions and restrictions. One of them - minimum order value. As a rule, people strive to get goods up to the required amount in order to receive free shipping. Psychology comes into play here: I will get more goods for the same price. Moreover, the cost of additional goods purchased is most often higher than the delivery price. If minimum price purchases are 1.5 thousand rubles, there are 1 thousand worth of goods in the basket, and delivery costs 250-300 rubles, then the majority will prefer to buy something else for 500 rubles.
Income: 600x30=18,000 rubles
Gross profit: 18000 -(600x0.8x30)=3600
Delivery costs: 150x30=4500
Net profit: 3600-4500= -900 rubles
It turns out that by offering free delivery for purchases of 600 rubles, the company operates at a loss of 900 rubles. Using simple calculations, we find that the company breaks even with an order amount of 750 rubles:
Net profit will be zero with gross profit equal to delivery costs. We calculate income. Income = gross profit x 100/profit from order (4500x100/20=22500)
Order amount = income/number of orders (22500/30=750)
That is, it will be profitable for the company to deliver orders over 750 rubles for free.
Yakov Grinemeyer, online store "GIANT-DOORS.Ru":
“In the GIANT-DOORS.Ru project, we decided to make free delivery for orders over a certain amount. This is a pleasant surprise for clients and one of the markers of our care. Such pleasant little things add up to an overall positive impression of working with us. It is important for us that the buyer is satisfied and shares his pleasant impression with friends, wrote a review. When the order volume does not allow us to provide free delivery with the planned amount of marginal profit, we make delivery chargeable. We base our pricing “on the market” so that our delivery conditions are “normal” and do not scare away the buyer. Often the cost of delivery turns out to be higher than the price for the client, so the marginality of the product should make it possible to compensate for these costs.”
Strategy 2: from product
Free shipping "for selected products" Suitable if you need to get rid of excess stale goods, for example, T-shirts of an unpopular color or shoes of a slow-moving size. You can offer free shipping when purchasing multiple items, this will encourage customers to leave more money in your store. You can limit the promotion with free delivery by time.
Strategy 3: from profit
Another free shipping option: "only for...". Owners of club cards or those who will pay for the purchase in a certain way (only in cash or only with a card from a certain bank). Delivery costs in this case are offset by some benefit for the seller.
When paying online, the online store kills two birds with one stone: it instantly receives “real” money into its account and is insured against non-repurchase of the goods.
Strategy 4: from distance
Many local companies limit free delivery to one city or several areas. This is due to the fact that delivery geography significantly affects its cost. Time, as we know, is money. One courier can deliver several orders in one area in an hour, but it will take half a day to travel to the neighboring city from where the notorious stool was ordered. IN in monetary terms These deliveries will cost very differently.
“There is free delivery, but only when purchasing over a certain amount and only within the city of Chelyabinsk. For intercity delivery, we deliver to the transport company's terminal at our own expense. Initially, we took over the delivery, since this was our competitive advantage then, and now it is a mandatory market requirement.”
5 ways free shipping works for you
Before you offer free shipping to your customers, consider whether it will put you out of business.
7 ways to ruin an online store
- Offer free shipping for large items. If a pizza can be delivered by a courier on a bicycle, then a cabinet or refrigerator needs to be loaded into a truck, taken to the place, and lifted to the apartment. That is, in addition to transportation costs, you will also have to pay for the work of at least two loaders.
- Free delivery by courier service. Professional delivery providers calculate the cost of their services based on distances and the weight or volume of the parcel. If your client buys a chair and needs to ship it to a neighboring city, then free delivery will not only eat up the profit from the order, but will also take the store into the red.
- If the store often returns goods or refuses to redeem the order, then free delivery will only bring losses.
- When trading low-margin goods, it is not profitable to offer free shipping. Online stores selling everyday goods household chemicals, children's products make sense to offer free shipping for a minimum order amount.
- If delivery is more expensive than the product being purchased, the seller will not be able to pay for it.
- Free shipping on limited shipping options. Online stores selling throughout Russia face this. For example, orders can only be sent to remote regions by Russian Post.
- Difficult delivery. If there are 2 or more links in the product delivery chain, then making it free is unprofitable. For example, pick up goods at a warehouse and deliver them to the railway terminal, transport them in a container to another city, and deliver them to their destination.
Paid delivery
There are also several variations in this strategy. All of them are based on average calculations, that is, some buyers pay more than the service actually costs, and some pay less. Sometimes the company pays part of the delivery costs itself.
Ivan Bazdrin, online store of sleep products “Sonata”:
“In our store, the cost of delivery, if it is paid, covers no more than 50% of the costs. We have large-sized goods and delivery to the door is required, and this plus loaders. We pay for their work ourselves.”
Strategy 1: one price
One of the paid delivery options setting a single price. When making calculations, it is necessary to take into account many factors: in addition to the average check, revenue and profit, you need data on geography, the share of returns, prices of courier services if you use third-party resources, or the cost of maintaining your own couriers.
See an example of the formula for calculating a single delivery rate for one order
Wherein optimal price should allow not only to work without a loss, but also not to scare off clients. To calculate the cost of delivery, you will need to equate it either to the weight of the ordered goods or to their quantity.
Most often, companies install fixed prices for delivery depending on the order amount, volumes, geography or some other parameters.
Usually one rule works here: the more the buyer pays for the product, the less he pays for delivery.
Delivery of a toaster costing 500 rubles and an external drive costing 5 thousand rubles (we take goods of approximately the same weight and dimensions) will cost the same, say 150 rubles. But the store’s revenue from these two purchases differs by 10 times. So it’s quite logical to redistribute the delivery cost depending on the price: charge 200 rubles for delivery of a toaster, and 100 rubles for delivery of a disk.
Strategy 2: Real Costs
In each specific case, depending on what they buy, how much they buy and where it all needs to be transported, its own delivery price is formed. Online stores that have chosen this delivery payment option install a special calculator on their website that makes calculations for each order.
Another option is to allow the buyer to choose who will deliver the goods to him. Typically, in this case, a list of enterprises and companies is indicated on the delivery terms page.
Which delivery payment option should I choose?
It is worth offering the buyer several delivery options to choose from, especially since the number of delivery methods also affects sales.
According to the service international delivery Parcel, to increase the number of orders by 10% just add it to the website more options delivery.
The British company Hermes conducted a similar study and found that 25% of purchases did not take place due to a limited choice of delivery methods.
In order not to make a mistake, analyze everything carefully.
- Don't make shipping free just because customers like it. Such a step must be economically justified.
Vera Frolova, online clothing store didriknaurale.ru
We do not offer free shipping. There is no option because we work with the whole country, and the cost of delivery can range from 90 to 900 rubles and even higher.It is not profitable for us to compensate the client even for part of the delivery, and working for the sake of work is also not interesting. There are orders that are easier to refuse than to implement. In addition, we work with a category that, although it has high margins during the season, also has off-season sales, when the margin level simply does not allow us to offer the client free shipping. We have sales on our website all the time.
We are a small business, and the issue of profitability and costs is acute for us - we do not have the opportunity to endlessly invest in the business simply for the sake of turnover and the expectation of profit sometime later. And according to the latest trends, even among major competitors, free delivery has become a promotion and not a mandatory option. At one time we had a pick-up point, we collaborated with Ozone and Boxberry as a pick-up point. And we could estimate the share of free deliveries at the largest stores (most had a paid delivery), and also see the percentage of refusals of orders, we know how many customers do not come to buy the goods. This information allowed us to determine our delivery policy and, after evaluating delivery services, make the choice of our service provider.
The price for delivery is formed simply: we have chosen the best courier service provider in terms of price-quality-speed of delivery. We also offer alternative way delivery - the ubiquitous mail of Russia, it will take you even to Kamchatka. And in some regions delivery by Post is much cheaper. For nearby cities Chelyabinsk, Tyumen, Perm, etc. delivery can happen as early as the next day and people love it. Delivery to Moscow takes on average 2-3 days, which is also very fast. In Yekaterinburg we deliver to SDEK pick-up points or through our own home delivery. When delivery is carried out by Post, we do not use cash on delivery. Firstly, we were repeatedly faced with delivery delays and, as a result, customers refused to receive the order and huge costs for an unsecured service. Once we had a 30-day delay in AIR delivery to Yar-sale. The total cost was equal to the cost of the order, which the customer did not redeem due to the delay. By the way, no one compensated us for anything. Secondly, when paying by cash on delivery, the client is charged a commission. Calculating the cash on delivery amount so that the client does not pay a commission is a difficult process and must be done manually each time. Therefore, now, if a client wants delivery by Russian Post, we offer him to make an advance payment for the order.
- It is worth comparing the profit from the sale of different products and setting delivery rates depending on the profit.
Free shipping. These two words act like a spell on store visitors, inspiring them to buy.
But before you use this method of attracting new customers, consider whether you will incur losses and consider which shipping strategy is best for your business. We will help you sort out all the details.
When can you offer free shipping?
Online stores that offer free shipping are preferred by 84% of shoppers. And 46% of buyers are ready to place an order for a little a large amount if you don't have to pay for delivery. After such statistics, it seems that your store needs to make delivery free. Take your time.
Don't offer free shipping just because customers want it or because you hope to increase sales.
First, carefully calculate everything, taking into account the following factors:
- Profit. If you have a large assortment and you get different profits from different products, do not rush to offer free delivery on everything.
- Product. Delivery costs vary depending on the weight and dimensions of the item. The heavier and larger the item, the more expensive its delivery, which means the more restrictions on delivery you will have to set.
- Average order amount. It is beneficial to offer free delivery only when a certain order amount is reached, which, naturally, is greater than the average order amount in the store. Later in the article we will tell you how to calculate the threshold order amount for free delivery.
- Delivery geography. If you ship internationally, remove free shipping for international buyers, or at least set a minimum order amount for free shipping.
6 free shipping options
Options can be used individually or combined.
Free shipping for any item
This option is suitable if:
- All your products are light and small: costume jewelry, accessories. Their delivery will cost you little, but there will be more customers.
- Typical for your business a large number of repeat sales. Then you can increase conversion in an online store through free shipping and at a loss. If regular customers a lot, then there is no need to spend money on attracting them. In the long run like this, free shipping will be beneficial.
Or you could offer free shipping only to new customers to encourage them to make their first purchase. This can be done using .
Minimum order amount for free delivery
Using this technique, you can increase the average order amount in a store. Let's calculate the minimum order amount for free shipping.
Initial data:
Number of orders - 10
The average order amount is 400 rubles
Profit from order - 25%
The average delivery cost for one order is 100 rubles
Calculation:
It turns out that you will break even if you make free delivery for an order of 400 rubles. For the net profit to be, for example, 1000 rubles, the gross profit must be 2000 rubles. Therefore, the income should be 2000 / 25 x 100 = 8000 rubles, and the minimum order amount is 8000 / 10 = 800 rubles.
Do the same calculation for your business and determine the order amount above which you can offer free shipping.
Free Shipping on Select Items
Use these tactics to encourage customers to buy:
- slow-moving goods, for example, sneakers are not the most popular color. This good way get rid of stale residues.
- most popular product group(delivery of which does not require significant costs). This will attract you and encourage you to buy more. larger number buyers (who will also pay attention to related products). But if there is approximately the same demand for all goods, this option will not work.
You can also offer free shipping when purchasing a combination of items (for example, sneakers + 2 pairs of sports socks), thereby encouraging customers to spend more.
Free delivery to selected destinations
The tactic works well for attracting customers from a region in which you have few sales. You can enter into a partnership with some transport company and send products to regions where your competitors do not deliver goods, thereby filling an empty niche.
You can also offer free delivery only within Russia, for example. Or only to some nearby cities. This will allow you not to raise the minimum delivery amount, but at the same time not work at a loss.
Club program
Customers pay a small fee to join your store's club, and you offer them free shipping and perhaps other special deals.
From time to time, run promotions and give free club memberships to unengaged customers to attract more participants to the program. Once they appreciate the benefits of a special relationship, they will probably no longer want to give it up.
Free shipping is included in the price of goods
Yes, this is not exactly free delivery, but the tactic works: raise prices by 5-10% to compensate for delivery costs. The game is worth the candle, since the “Free Shipping” label will increase the flow of visitors to your store.
This strategy will be effective in a low-competition niche. But even if there are many products on the market similar to yours, it’s worth testing the method. Especially if competitors already offer free shipping.
How to set up in Ecwid store
In your Ecwid store, you can specify several delivery methods depending on the region, order amount, or delivery speed.
To set up free shipping:
To tell customers about free shipping, use the free Free Shipping Icon app. Connect it and the “Free Shipping” picture will appear on the product pages. You can use your own image and customize display conditions. For example, inform about free delivery if the cart contains goods worth more than 1000 rubles.
