Plenty of shops sell well and still end the month with nothing left. Two causes come up again and again: prices set by feel without counting every cost, and delivery fees that don’t cover what shipping really costs. Each order loses a little money, and nobody notices.
This guide works through it step by step, from the cost of one item, to the selling price, to the delivery option that suits your shop.
Start with the full cost of one item
Cost isn’t only what you paid for the product or ingredients. Go through it line by line:
- The product or raw materials
- Packaging: boxes, bubble wrap, tape, stickers, thank-you cards
- Waste: unsold baking, pieces that break during making, averaged out per item
- Running costs, such as your online shop plan, internet, water and electricity, divided by how many items you sell a month
- Your time. Leave it out and the shop looks profitable while you work for free.
An example (made-up numbers): one handmade ceramic mug. Clay and glaze 120 baht, firing 40 baht, box and padding 25 baht, average waste 15 baht. That’s 200 baht in total. Sell it for 450 baht and 250 baht is left per mug to pay for your time and the shop’s costs, and it needs to be enough.
Setting the price: look at it three ways
- Cost plus what you need to keep. This is the lowest price you can sell at without losing money.
- What similar products sell for. You don’t have to be the cheapest, but you should be able to explain your price.
- The value buyers get. Handmade, baked fresh, made to order or great service are all reasons a price can be higher.
Be careful about starting low to win customers. Raising prices later is harder than starting at the right one. And if you sell both in a physical shop and online, matching prices build trust. If your online price differs because of packing costs, say so plainly.
A flat delivery fee: the simplest choice
A flat fee means every order pays the same delivery charge. Buyers see it before they pay, nothing gets added later, and you never have to work it out again.
How to pick the number:
- Look back at your last 10 to 20 parcels and what they really cost to send.
- Use the typical cost, not the cheapest, so you don’t lose money on parcels that are bigger or travel further than usual.
- For unusually large or heavy items, add the extra shipping to that item’s price. Your flat fee then still works for most orders.
- Try it for a month and review whether the fees you collected covered what you actually paid.
In Tellsell, you set one flat delivery fee in the dashboard. The total is always worked out from the prices in the system, so buyers can’t change it, and the PromptPay QR includes the delivery fee in the amount.
Free delivery above an amount
Buyers love free delivery, and many will add one more item to reach it. Orders get bigger and buyers feel they got a good deal.
How to set the amount:
- See where most of your orders fall, then set the free-delivery amount a little above that.
- Check the profit at that amount still covers shipping, because now you’re paying it.
An example (made-up numbers): shipping costs you about 50 baht, and most orders are 300 to 400 baht. Try free delivery from 500 baht, then check that a 500-baht order still leaves a profit after the 50 baht of shipping.
In Tellsell, checkout shows the amount needed for free delivery, counted on the product total. To deliver every order free, simply set the delivery fee to 0.
Pickup at the shop
Pickup suits cafés, bakeries, fresh food, fragile items and regulars nearby. Buyers pay no delivery fee, and you don’t pack a box.
- Add your opening hours and address with a map to your shop info, from the Shop info button in LINE.
- Tell buyers when their order is ready, especially for anything made to order.
In Tellsell, buyers choose “Pick up at the shop” at checkout and aren’t asked for an address. You can offer pickup and delivery together and let buyers choose.
After you ship
When the parcel goes out, tap Shipped in LINE and type the tracking number. Buyers who gave an email get a message with the tracking number, which cuts down a lot of “where’s my order?” questions.
Review your prices regularly
- Recheck your costs every few months. Materials, boxes and shipping go up and down.
- If you need to raise prices, tell your regulars ahead of time with a short reason.
- On tax: income from selling online is taxable like any other income, and whether you need to register for VAT depends on your shop’s revenue. Check the details with an accountant or directly with the Revenue Department.
In short
A good price starts from complete costs, and a good delivery fee is one buyers understand at a glance and that doesn’t lose you money. For most shops, a flat fee, free delivery above an amount and pickup cover almost every situation. To try setting up a shop and delivery for real at no cost, see what the Tellsell Free plan includes.
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