Postage and packing costs on when buying on internet?

Question

I've recently set up a company selling items on the internet (relatively low value). I'm not sure how to set my postage and packaging policy and am thinking of adding the cost of P&P to the price of the item as personally I don't like getting 'stung' with a one-off payment when you get to checkout, particularly when I have only bought an inexpensive item. What are your thoughts? Would it put people off, would prospective purchases just see this price and think I wasn't as competitive as others on the net? Am I better doing what everyone else does and add a cost of maybe £4.50 P&P regardless. I would prefer to have an honest policy as 'the price you see is the final price you pay' ........Thoughts please.

Answer 1

As a customer I would rather pay the correct p&p for each item, than pay too much.

If your postage is concealed in the price, punters will think they are being ripped off. Likewise if there is a standard charge for all items regardless of weight.

So show your delivery policy upfront, and let the customer decide.

Answer 2

Selling items on the internet in the UK comes under the distance selling regulations. The DTI have some good advice pages on their site (see below).

You will need to declare, amongst other policies, your post and packing policy and I would recommend you have the site 'vetted' by a third party organisation specifically set up for this purpose. The only scheme approved by the UK Government is the Safe Buy Scheme (link below)

Do you include the price or not? What comes across from all the answers is people want to be told very clearly whether it does or not. Which price option you go for seems to be a matter of personal preference. Remember to cost for a service that provides a receipt service back to you so you are assured that your product has been received. Royal Mail's Special Delivery does this, as well as provide item insurance. As your business grows you can use a courier who would probably be able to undercut their rates.

All the above is about the most crucial success factor in an online store. You'll need to build trust, almost immediately. Apparently most people will rate a site within six seconds.

Good luck

Answer 3

I often use sites like Kelkoo which give the final price after postage has been added on. It is annoying when you're not told about P&P until checkout: it's not too difficult to display it on the item page. Having said that I have never been put off from making a purchase when P&P has been added on. I expect it and it's usually a reasonable fee, unlike ebay listings where £20 is not uncommon, but that's always stated in the listing. Such a level of P&P would put me off buying an item.

Answer 4

Hello Hels,

Having bought many items over the Internet I prefer the cost of the item(s) to be shown with the cost of P&P included in that price. For example: 'Cuckoo Clock - Price £10.99 (ncl P&P).

If you are selling just one item to many potential buyers, or even a few low priced items, my advice is to:

1) Decide which method you are going to use to send the items. ie Royal Mail 1st or 2nd class and find out from the Post Office how much this/these items will cost to send.

2) Decide how much it will cost you to package & process each item.

(3) Advertise the items including the P&P.

I am sure you very often see items advertised offering free postage. I very much doubt that the P&P is actually free, it is included in the selling price they actually set for the item(s) they are selling.

Advertising free P&P is often just a gimmick.

Poseidon

Answer 5

It depends on how your competitor's prices are displayed - if your item is low price, you don't want people to see your competitor's price (excl P&P) and think they're cheaper. By the time they get to the checkout and find out the true cost, they won't be bothered to go back and re-compare.

Customers are simple animals (and I include myself in that) - we want to be able to see at outset how everyone compares, so ensure that in any 1:1 comparison, it is easy to see how both your prices and postage compare to others

All the best

Answer 6

No-one will buy from you with p & p at that level. It's a rip off. No way does it cost you that much.
Also, if you charge that much for postage and packing, and you are registered for VAT, then you have to add VAT to it too. The only way to avoid VAT on postage is to charge what it actually costs you.
Our policy is exactly that. Our customers are happy and so is the VAT man. You can see our shipping policy at http://www.snorestore.co.uk/contents/en-uk/d4_shipping.html - you're welcome to use it.

Answer 7

totally agree with 1st answer.
keep your P& P to a minimum and keep it as a separate charge so customers see they are not getting mugged.
good luck with your venture

Answer 8

i believe the grand total would be the lot. eg product, shipping and postage.