Is it more profitable to charge shipping separately
We are currently selling with selpship and offering free shipping. Now our category has very high comission of 15% and GST of 18%. i was wondering if we charge shipping separately will the comission and tax rate decreate because the product price will now be independing of shipping charge
Is it more profitable to charge shipping separately
We are currently selling with selpship and offering free shipping. Now our category has very high comission of 15% and GST of 18%. i was wondering if we charge shipping separately will the comission and tax rate decreate because the product price will now be independing of shipping charge
4 replies
Seller_lFg7VUzl8pJZA
1. GST on shipping will remain at 18 %. There is no saving there.
2. Commission amount maybe be lower as it would be on the product price only.
3. Buyers avoid the words "shipping charges extra" like plague. You may end up losing business due to extra shipping charged.
Seller_sjGJoucrE9HBq
From my experience, for low cost products its better to sell with separate shipping charge.
Customers most of the time, look at the product at low and buy it. When i added shipping along with product nobody was buying the same item.
Seller_lR56vpCz6JktG
There is no difference when it comes to profitability. Amazon charges fee on the entire amount where you charge shipping seperately or include it in the product price. But if you include shipping fee in the product price then make sure it doesn't exceed the MRP printed on the product because the overall price now is a part of the product price only. The shipping fee element will be taken out of the picture.
