I look forward hearing from you

Best Regards

@Benny, You bring up very good points.

You could try the bundled price approach. The big idea of the article was the psychological effect of free shipping, even when the price of the item is higher (similar to how hotels with higher nightly rates but free wifi are more attractive, I can’t seem to locate that study online). So if the “$89.98 incl. shipping and taxes” is a better offer than $79.99 + $9.99 shipping in the customer’s mind, then you can refund only the item price for a refund, and require them to foot the bill for shipping back to you. I’d look at how your competitors are handling it too.

For your second issue, do you have an idea of demand by region? Depending on the volume you do with this product, you could send bulk shipments to more local fulfillment houses (I understand this depends on your fulfillment arrangements and is not that simple and carries extra costs if the demand is mis-estimated).

Another thing you “can” do with targeted selling (which I will mention in our webinar later this month) is show different prices to different users based on geo-location. Geo-location like Quova http://www.quova.com/ can do this. If customer is in X territory, show Y price, for example. That is, if the shipping costs are predictable for these regions.

Setting the actual MSRP is a bit trickier than shipping – are you using shopping comparison engines? You mentioned the product is unique, who else sells it? If there’s a lot of visibility for the product, you’ll need to be more conscious of pricing relative to other seller options.

If there’s a competitor selling on Amazon you might even want to take advantage of Fulfillment by Amazon program and sell through Amazon also. You send them a huge shipment and they will fulfill orders placed through their marketplace for you, leveraging their uber-efficient system. This can be in addition to your own web channel.

Also, I have a dilemma here. I want to sell a product who’s MSRP is $20. It’s a fairly large product and costs are $6 – $12 depends on the location (the 48 states only). How do you go about such situation? The product is unique and new and there’s no set price for it, but we thought the $20 is the right price. Once thing i thought about was setting the MSRP price to $25 or $30 and say free shipping or shipping included. How would you go about it?

But don’t forget to think through how to deal with returns and product swaps as well.