I get the strategy behind adding shipping fees and taxes to a customers order after they have already started the checkout process, but it's so shady in my opinion.
Here's how the strategy plays out:
A customer knows they will have to pay shipping and taxes, but don't know the exact price. In order to find out, the customer must put in their name, shipping info, email and sometimes a phone number. Only after all of this, you see the extra fees.
The importance of this from the sellers perspective is the fact that if the buyer decides to back out of the purchase, the seller can now retarget the buyer with social media ads and email/sms notification for life! (unless you, the buyer, go out of your way to stop them).
Another reason this strategy is used so often is because of "psychology". Take this scenario, for example:
Let's say the sale price of a product is $17, taxes are about $3 and shipping is $10 ($30 total). What's more appealing: showing a price tag of $17 and a notification saying "shipping and taxes calculated at checkout" or showing a price tag of $30?
The argument is that, once a customer goes through the checkout process, they have almost finished the purchasing process, and that extra $13 in shipping and taxes won't really phase them. But what if they are like "nah, I'm not down" and abandon the checkout? Then we go back to what I mentioned earlier about being able to retarget them with ads and emails/sms notifications to make the purchase later.
I'm not about that. Buyers know that have to pay for taxes and shipping and already expect it, so why play these games? Just give them the total price up front, and if they want it, good. If not, then I'm not going to chase after them.
Trust me, people will think I'm an idiot for saying that, but I see the importance of being transparent with my customers.
Most brands are secretive about their design process, how they source manufacturers, and if they are a small beginner brand being run out of a basement or bedroom out of their parents crib, they go out of their way to prevent from anyone finding out. Hence the phrase "FAKE IT TILL YOU MAKE IT!".
Over the last 3 years, I have approached my business doing the complete opposite strategy and I can confidently say that my current success is because of that.
This clothing brand hit 6 figures in revenues within the first 4 months of 2021, and to this day, I still have a shelf of products and shipping supplies directly in front of my bed, in my bedroom at my parents crib. I literally walk over boxes to get to the bathroom. I used to live stream myself packing 1 order a week on my bedroom floor; now I pack hundreds of orders a day on a table to the right side of my bed! This brand has been just me for the last 3 years, and although I will be bringing people in to take some jobs away from me so I can focus on more important tasks, it currently is still me. As long as this business is a 1 man show, you will never see the term "WE" or "US" on my website.
"WE are working on packing your orders".
"WE are preparing for a restock".
"Follow US on Social Media".
"Thanks for placing an order with US".
I am working on packing your orders.
I am preparing for a restock.
Follow ME on Social Media.
Thanks for placing an order with ME.
There was a point where I had absolutely no idea what I was doing (to an extent, I still don't!), but people still supported my brand because they saw something in me and my brand, that they didn't see else where.Transparency, realness and honesty. This is what has differentiated me from every other brand.
I value TRANSPARENCY, REALNESS and HONESTY. This is why I do not charge extra fees on checkout. THE PRICE YOU SEE IS THE PRICE YOU PAY. All my prices already include shipping and taxes.