Should online sellers include shipping cost in the product price?9 min read

Of the many reasons for cart abandonment, the shipping fee is among the biggest. It plays a crucial role in influencing consumers’ online purchasing behavior and decision making. 

The truth is that today’s customers don’t appreciate a separate cost being added to their products at checkout.

In the Amazon era, customers are spoiled for choice by businesses offering free shipping and faster deliveries.

So, should you include the shipping cost in your product price?

The answer actually depends on a few factors.

What does including the shipping cost in the product price entail?

By making the shipping cost part of the product price, you totally blanket your customers from the idea that they are paying an extra amount apart from the product price, and provide the impression they are  getting FREE SHIPPING for purchasing from your brand.

 

And boy is “FREE SHIPPING” a major hook!

 

According to Berman and Wharton marketing professor Barbara Kahn, there’s a certain psychology behind “FREE SHIPPING” that makes it almost mandatory to include shipping cost in overall product price. Kahn calls it the “pain tax.”

 

Pain tax: As humans, we have a tendency to segregate gains and take pleasure individually