Running an online dessert studio is a popular starting point for many entrepreneurs. However, delivering delicate desserts intact to customers via logistics is a challenging task.
Many novice sellers only calculate the ingredients and the pretty cake box when pricing, only to have their profits eaten up by expensive “cold chain shipping fees” and “protective packaging costs.” How should you account for these hidden online costs?
1. Deconstruct the “Hidden Protection Costs” of Single Shipments
When shipping a frozen cake, your cost is definitely not just the shipping fee on the receipt. You must include the following items in your packaging costs:
- Outer Corrugated Box: Must be sturdy.
- Cooling Supplies: Cooler bags and a sufficient number of ice packs.
- Protective Materials: Bubble wrap, packing peanuts, foam.
- Brand Cards & Invoices.
Conclusion: These auxiliary packaging materials for “safe shipping” usually consume a significant amount of cost. When using MyBakeCalc, be sure to enter this fee into the “Packaging Cost” field.
2. Who Should Absorb the Shipping Fee?
This is a psychological battle. You have three common strategies:
- Strategy A (Pass-through): Sell the product for $50, add $20 for shipping. Suitable for highly renowned brands.
- Strategy B (Shipping hidden in price): Price the product at $70 and promote “Free Shipping.” This significantly increases checkout rates, but makes accounting harder if they buy two.
- Strategy C (Free Shipping Threshold): The most recommended approach. Price the product at $55 (absorbing $5 of shipping), set shipping at $15, and offer “Free shipping on orders over $150.” This effectively raises the Average Order Value (AOV).
3. Test Your Packaging Limits
Before officially taking orders, conduct a “stress test.” Pack your cake, freeze it for 24 hours, and ship it to yourself. Only by experiencing the logistics throwing and temperature changes yourself will you know if your protection is sufficient.