I was wondering how many sellers here offer Next Day / 1 Day shipping for the continental US, and/or Alaska/Hawaii?
I’m wondering how much business I might be losing - but my biggest competitors don’t offer next day shipping.
For my customizable / personalized products I would have some insulation against returns. And if an item is refused or has a bad address, I may be able to get the shipping cost reimbursed via a Safe-T claim.
My average order value is $49. Next Day air is $55 to $75 (just taking a quick look, could be higher costs for rural routes in the farthest zones).
Is there an e-commerce formula where you should not exceed shipping value that exceeds a certain % of your order, COGS, or other value?
I don’t have an MBA, but I did sleep at a Holiday Inn last night.
Edit: I just want to mention that I don’t offer any customized or handmade items, and I do offer some of my most profitable/highest volume items through FBA, so if someone wants to pay extra for expedited shipping they can, but Amazon deals with it. I am not interested.
Can’t comment on an order value formula, but the last couple of years UPS (and Fed-Ex) Air services have been horrible. They find any excuse for a delay that voids the guarantee promise. Then add weather issues on top of that. Buyers will not accept after paying this premium and you will be eating a lot of NDA cost. Amazon CS will probably side with the buyer and refund on your behalf.
In the past, NDA and even 2DA has been like Murphy’s law for me. More orders go sideways than not.
