Create "value added" products

Updated: 3 days ago

Shipping Boxes Showing Value Added Products by Karen Little Sketch-Views

Before considering your sales niche, study the cost of shipping. Why? Because shipping costs are part of your product costs.

Be aware that Amazon made "free shipping" a standard by hiding its cost of shipping in the fees people pay for Amazon Prime. Most of us can't hide shipping under the guise of paying for something else, so we need to bury it in our product prices in order to provide "free shipping" to customers.

For low-price items, shipping can cost the same or more than the product itself! An $8 print-on-demand mug, for example, costs at least $7 to ship, making its base price $15. Add transaction fees and overhead to that and the base cost goes up significantly.

How to get around this? Instead of thinking "product," think "products," as in bundles of things that don't affect shipping, like combining digital and physical items. This, in turn, increases value and price. Your customers get a better deal, while you increase your profit margin.