Should shipping costs be built into the product price or charged separately at checkout for D2C sales?

Charge shipping separately at checkout rather than building it into the product price. This approach gives you flexibility to use free or discounted shipping as a marketing tool.

**Practical tactics members use:** - Charge shipping at checkout (e.g. £3–£3.95) but offer **free standard shipping above a threshold** (typically £30–£50 depending on season). This incentivizes larger basket sizes. - Offer tiered shipping options: free standard, premium next-day for a fee (e.g. £3.95). - Use free shipping as a **value exchange** — offer it in exchange for email signups, which builds your list for future campaigns. - Use shipping discounts in **email campaigns and promotions** to drive repeat orders or clear stock.

**Important margin caveat:** Members who've analysed this closely found that free-shipping thresholds can significantly erode margins post-logistics. One business assumed 78% of orders would fall below their £50 threshold but found only 60% did in practice — meaning they're effectively subsidizing 40% of orders' full pick/pack/shipping costs, bringing website margins closer to on/off-trade levels. You may need to set your threshold higher or accept lower margins on D2C to make the model work. Shipping is now "basically a must-have" for D2C, but budget carefully.