Online store shipping: parcel lockers and rates
Shipping is the last step at an online store's checkout before payment, and one of the most common reasons a basket gets abandoned. The customer sees unexpectedly expensive delivery, can't find their parcel locker, or doesn't understand why a heavy item costs the same to ship as a light one. Setting up shipping in an online store isn't complicated, but it has to be thought through before launch. Below is a checklist.
What to base shipping rates on
Most small shops start with one price for everyone. That's simple, but rarely fair. Typical rules:
| Rule | Example |
|---|---|
| Country | One price for Estonia, another for Latvia and Finland |
| Postcode | Local delivery only in your own town or area |
| Weight | Light goods to a parcel locker, heavy goods by courier and at a higher price |
| Order value | Free shipping above a certain amount |
| Customer group | Separate terms for trade customers |
A good shipping setup uses two or three of these, not all at once. The more rules there are, the harder it is for the customer to understand why they're paying exactly that much.
Parcel lockers: the most popular delivery method in Estonia
In Estonia a large share of online shoppers prefer parcel lockers. Three things have to work:
- The list of lockers must be up to date. New lockers are added and old ones are closed. If the list doesn't update itself, sooner or later a customer will choose a locker that no longer exists.
- Choosing must be quick. The customer must find their locker by town or name, not scroll through a hundred rows.
- The shipment must be created from the order. If each order's address has to be retyped into the carrier's system by hand, mistakes creep in and time is wasted.
Free shipping threshold
Free shipping above a certain amount is one of the simplest ways to increase basket size: a customer with €42 in the basket and free shipping from €50 will often add one more product. When setting the threshold, consider:
- Average order. The threshold should be a little higher than that, not twice as high.
- Margin. Work out whether the shipping fits within the margin on that amount.
- Heavy goods. Free shipping may not suit goods that weigh a lot — a weight-based rule is better there.
Besides a permanent threshold, free shipping can also be used as a promotion: for example at the weekend or for buyers of a particular product group.
Checklist before launch
- Do all products whose shipping cost depends on weight have a weight entered?
- Is there at least one shipping method for every country you sell to?
- Does the free shipping threshold work as you intended (before or after discount)?
- Does parcel locker selection work on a phone?
- Can the customer cancel an order until it has been shipped, and do the goods then go back into stock?
- Did a test order go through from start to finish — payment, invoice, shipment?
How it works in NUNDINAE
In the NUNDINAE online store, shipping is set up on one page (Sales › Shipping):
- Shipping methods and rates by country, postcode, customer group, weight and order value.
- Free shipping threshold — for example free shipping above a certain amount, or a separate price for heavy goods.
- SmartPost is built in. SmartPost is one of the main parcel locker networks in Estonia. The list of lockers updates itself and the customer chooses a suitable locker at checkout. You create the shipment straight from the order, without retyping data into another system.
- Other carriers: if you'd like Omniva, DPD or another carrier, I'll add it.
- Local delivery in your own town or area by postcode. I described how this looks for a flower shop in online shop for a florist.
- Promotions: a basket rule can give free shipping instead of a discount, with a validity period and conditions.
You can allow customer cancellations in the settings: the customer can cancel the order on the order page until it has been shipped, and the goods go back into stock. If the order was paid, you get an email saying a refund is needed. I explained how payments and refunds work through Montonio in Montonio payments in an online store.
Why shipping and stock need to be in one place
The customer chooses a shipping method only once the goods are in the basket — but that's only useful if the goods really are in stock. In NUNDINAE the online store and the stock are one application: ordered goods are set aside immediately, a till sale and an online order reduce the same stock level, and you start packing goods that are actually on the shelf, not what the online store thought was there. I described how this looks in an ordinary shop in online store and stock for a retail shop.
Summary
Start simple: parcel lockers, one or two prices and a clear free shipping threshold. Add weight or area rules only when real orders show they're needed. And before launch, put at least one test order through from start to finish.
If you'd like an online store where shipping, payments and stock are already set up together, order NUNDINAE or ask for a demo.
