A lot of people believe that the cheapest international shipping is through the US Postal Service. If you are shipping locally in the US, the USPS can offer you the cheapest rate. However, going international exposes you to various options for optimum results.
Top players in international shipping include DHL, UPS, USPS and FedEx. Your ability to compare their prices will help you to determine the one that will meet your expectations. International shipping rates vary depending on weight, destination and delivery time frame.
The USPS has different pricing for various countries, and these countries are properly grouped for administrative convenience. USPS shipping rates can be cheaper but their delivery periods may not be ideal for a business person, especially if you desire next day delivery.
Hence, using the services of express shipping companies like FedEx, UPS and DHL can help your e-commerce business. However, it is advisable to have a business account with them so that you can get rates that will make you stay in business.
How to Determine Product Pricing
The cost of running your business and your competitors’ price will determine the right price for your product. Your running cost includes inventory, salaries, property leases, utilities, among others.
You need to get things straight in this regard before coming up with your final price. If you don’t get these numbers right, you can exhaust your financial resources, and this can lead to the failure of your business.
How Shipping Method Affects Price
Your pricing strategy will determine your shipping method. You need to get the product price right so that you can choose an ideal shipping method.
How to Price Your Products
There are many ways to price your product and some of them are discussed below.
If your product cannot be easily differentiated from those of your competitors, you should use the competitive pricing method. This involves using an established market price for your product. If you fail to follow this model in this circumstance, you may lose a lot of customers to your competitors.
This method involves creating a price after considering your entire overhead cost and profit margin. However, you should be careful with this method, especially in a competitive environment.
Underpricing can make your product look inferior when compared to others. Also, if you price too low, you may not be able to cover costs, and this can lead to business failure. You should avoid underpricing as much as possible so that your business can move to the next level.
This is as bad as underpricing, or even worse. Overpricing can chase your customers away, and if you are not making sales, you may eventually lose out. Take note that customers will compare prices, and if yours is not reasonable, your competitors will be smiling to the bank.
This involves based on the quantity demanded. Usually, a wholesaler pays lower per unit because he is buying in quantity. Demand pricing is a blend of profit and volume, hence you can use it to achieve the best result