Content area
Abstract
Fears about shipping, handling, and returns prevent many prospects from making that first purchase. Just recognizing the risk of disappointment and inconvenience for at-distance consumers doesn't begin to address the angst that S&H triggers. According to the Direct Marketing Association, excessive shipping charges are the top reason consumers abandon their online shopping carts. Even experienced Internet shoppers suffer extraordinary sticker shock during checkout. There's no single formula for calculating S&H correctly; you may want to work with an industry analyst to help you identify and substantiate the relevant costs in your operation. It's generally accepted that anything paid directly to the parcel carriers can be recovered, as well as the cost of all packaging materials and the direct labor expense to get the merchandise from the warehouse to the customer's door.