Managing your shipping costs and driving sales through Subsidy Management
At Yakit, we believe that our customer’s success is our success. In our continuing efforts to enable our customers to achieve greater success and profitability, we are pleased to announce the availability of the Subsidy Management feature for all our customers, as well as upgrades to this feature for our existing Shopify merchants. Managing your costs and driving sales using the Subsidy Management feature becomes super easy. This feature is designed to provide you a high degree of control over shipping costs and flexibility in presenting quotes to your international customers.
Our Subsidy Management provides you two control levers, mainly :
- Free/flat rate
- Markup/markdown
The settings in this feature can be applied at the Service Type level, as well as by country/region (as required).
Free/Flat rate
Most ecommerce experts recommend subsidizing shipping as a way to increase your customers' purchase rate. We highly recommend using our Free/Flat shipping feature (For Non Shopify users Preferences->Yrate adapter settings, For Shopify users Channels > Free/Flat shipping) to simplify shipping costs for your customers, and to encourage larger purchases.
For eg;
- You can offer free shipping to customers where order value is above $100 by setting Free Threshold = 100 . This will quote the shipping as $0 to your customer, beyond a order value of $100. If the order is below $100, it will just quote the actual shipping cost.
- You can offer a flat shipping rate of 10$ and flat duties of $5 and free shipping beyond 100$.
- If you leave a field empty the rate calculator gives the actual values as existed before.
Markup/Markdown
Due to dimensionality of packages and variations in boxing, there could be differences in quoted costs versus actual costs seen by the shipper. Our automated subsidy management feature which is now enabled takes care of adjusting for these differences over a period of time using heuristics. In addition to this, our customers can chose to use the markup feature and avoid any losses they incur due to packaging variations not yet anticipated by the system or due to wide variation in product/packaging. We also understand that some of our shippers would like to give a discount to their bulk customers. We have enabled this by allowing you to use the markdown feature to give your bulk customers a discount on shipping.
This feature provides an easy way to provide markup or markdown value ( or percentage ) on the shipping cost based on a threshold (minimum or maximum) order value.
Some examples :
- A $5 markup on can be set on all orders by setting the Mark Up/Down value= 5 . The threshold values are optional if you want to apply markup/markdown to all shipments.
- A $5 markup on can be set on orders where order value is less than $10, by setting the Mark Up/Down value= 5 Mark Up Threshold = 10 .
- A 5% markup can be set on orders where order value is less than $10 by setting the Mark Up/Down value (percentage) = 5 , Mark Up Threshold = 10
- A $10 markdown can be set on orders where order value is more than $100 by setting markdown threshold = 100 and markdown value = -10.
- A 10% markdown can be set on orders where order value is more than $100 by setting Mark Up/Down value (percentage) = -10 , Mark Down Threshold = 100
