Are Shipping Costs to Be Included in the Final Product Prices?

shipping rates in Canada

E-commerce is becoming more popular, especially for large items on pallets. Small distributors and manufacturers in Canada are testing out different pricing models. One pricing model is to add the freight cost to the product price. When you are selling large items that require LTL shipping, the transport cost is a large part of the price of the item. There are pros and cons to including shipping rates in Canada in your overall product price.

Some larger marketplaces try to get sellers to include the purchase price and shipping costs rolled together. But to do this, companies need to be closely linked to a trucking company or logistics provider. They also have to be able to offer competitive shipping.

Higher Volumes of Sale

You might be able to build the shipping rate into the overall price without making the product too expensive. This can be by having a higher sales volume, which can increase the efficiency and productivity of your shop floor. You might be able to connect with clients who live further away. Think of it as a marketing promotional expense. It is just part of doing business with new customers.

Some of your clients may not be open to paying for their items’ shipping costs in Canada because they already have existing relationships and rates with their own carriers. Look at your sales volumes before and after you have made a shipping promotion. If you get more sales during your promotion, then you may find that it is worthwhile. Of course, this is only true if you can fit your shipping rates in Canada to the final product price.

Improve Customer Relationship

Your customers will no longer have constant reminders that they are not ordering locally. If they buy from you and their orders come right to them, they will think it is as easy as dealing with local suppliers. Including the freight costs might help you to simplify the process a bit more.

If the main competitors in the new regions you want to reach offer free shipping, you might have no choice but to do the same. Otherwise, you won’t be competitive. You can look up who they are online and look at any shipping promotions they have.

Save Money on Shipping

When you sell to customers in new regions, working with a reputable logistics provider can help you gain a better understanding of your delivery and freight pricing options, including LTL shipping rates. That will place you in a better position when it comes to selling in new areas. ShipCanada Inc. can help you save on your shipping costs in Canada. Contact us today, so we can help you close more of your sales opportunities.