A Sensible Shipping Strategy for Small Online Shops

Shipping is where many small shops accidentally lose money or lose sales. Charge too much and baskets get abandoned; charge too little and your margin disappears into postage. Getting the balance right matters more than most owners expect.

This guide explains the practical ways to handle delivery as a small online retailer, so it is fair to customers and sustainable for you.

Pick a model that customers understand

The simplest approaches are a flat rate per order or free delivery above a set spend. Both are easy to grasp, which matters because confusing shipping is a classic reason for abandonment. Live carrier rates can work but sometimes spook people with unexpected numbers.

A free-delivery threshold has a useful side effect: it nudges people to add another item to qualify, lifting your average order value. Set the threshold a little above your typical basket to make it work for you.

Cost it out properly

Work out your true cost per parcel including packaging, courier fees and the time to pack and post. Only then can you decide what to charge or whether you can afford “free” delivery built into your prices.

If you offer free delivery, remember it is never really free — you are absorbing it into the product price or your margin. That is fine as long as you have done the maths and the numbers still work.

Set expectations and choose couriers wisely

Tell people clearly when their order will arrive and stick to it. A reliable, slightly slower service that always delivers beats a fast one that lets you down. Tracking and a notification when an order ships both reduce “where is my order?” enquiries.

Compare couriers on price, reliability and the experience they give your customer, not price alone. As you grow, packaging deals and discounted shipping rates become worth chasing.