Shipping costs is a concern for customers and businesses as well. Too high of a shipping price turn customers off, and too low of a price means losing a lot of money. It's important to know that shipping is the last transaction with your customers and a bad impression means most of your customers would not return.

Charge Shipping Costs by Weight
Too many businesses charge shipping by the cost of item purchased and it's a mistake. It makes more sense to charge by weight because that's how shipping companies decide their prices. Charging by cost is much less accurate and most customers see it as a way for companies to profit from shipping. Surprisingly, many companies, big and small, still charge by cost. According to a recent research by Jupiter Web Track Survey, 54 percent of online retailers base shipping charges by cost and 30 percent on weight.

Shipping Service Options
Different customers prefer different services. USPS is cheaper for heavier items. UPS and FedEx offer more convenience. Make sure you have the shipping options your customers prefer available.

Charge How Much It Costs to Ship the Product
Sounds simple, but many companies try to profit from shipping in order to lower the cost of the item. Doing this will give the customers a bad impression on the final minutes of the transaction. Even if the customer buys the product, he or she will probably not return to shop.

Free Shipping
For heavy items such as computer monitors, many customers do not understand the high shipping costs. In these situations the transaction could fall apart over shipping. If the product is in high demand, offer free or low cost shipping. If that is not possible, display the shipping costs next to the price of the item. Doing this might result in less customers putting the item in their shopping carts, but at least they won't have any last minute shock that loses customer loyalty.

For small items such as jewelry or pens, offering free shipping can increase sales. Without losing too much from shipping, it can increase overall profit.

Returns & Exchanges
In the case for returns, most companies do not pay for shipping nor refund the cost of shipping. Some will even charge a repackaging fee. This is, of course, only if the item is not defected. In that case, good customer relations dictates that companies should pick up all the shipping charges when the product shipped is broken. You will lose in shipping, but in the future you will more than make up for it by increasing customer loyalty.

Exchanges can go both ways. By paying for shipping, you will gain customer loyalty, but you will also lose when customers change their mind about an order, regardless of how clear you list your items on your website. Many customers will also ask for an exchange for items that they destroyed. If you cannot decide whether you should pay for shipping or not, consider paying for one of the trip.