Free Shipping Problem

[DavidAM]

Hi,

We are currently using a weight based shipping option with free shipping over a certain specified value.

Our problem is that we sell both Normal 17.5% VATable and Zero Rated products.

As far as I know we use the approx net value to specify the amount to be spent to qualify for the free postage. Unfortunately this doesn't take into account the fact that our customer could be buying both VATable and Zero VATable products.

Is there a way around this? We are happy to consider moving away from weight based shipping if this will help.

Example:

Current FREE shipping amount is over £100 (including VAT). We have entered the net amount of £85.10 as the amount over which to provide the FREE shipping (as this is the only way we could make it work!).

However if one of our customers buys all Zero VATable products then they only have to spend £85.10 to get the postage for free.

We would prefer the free shipping to be clearly based on the VAT inclusive price paid.

Does anyone have any suggestions on this one?

Thanks


David

[leehack]

However if one of our customers buys all Zero VATable products then they only have to spend £85.10 to get the postage for free.

We would prefer the free shipping to be clearly based on the VAT inclusive price paid.

Does anyone have any suggestions on this one?

I think you are looking at this incorrectly, if i buy zero rated items up to the value of £85.10 or if i buy items up to the value of £100 with vat on, what difference does that make to your pocket? - answer is none, the vat is never yours anyway. I know it may seem like they get away with it, but in real figures, they are not, both transactions are the same to you in profit terms.

[DavidAM]

I think you are looking at this incorrectly, if i buy zero rated items up to the value of £85.10 or if i buy items up to the value of £100 with vat on, what difference does that make to your pocket? - answer is none, the vat is never yours anyway. I know it may seem like they get away with it, but in real figures, they are not, both transactions are the same to you in profit terms.

Fair point well made.

I think that really I just wanted the clarity for customers.

Thanks for altering my perspective.

David

[LesleyN]

Hi David,

Did you manage to overcome this problem with Shipping and VAT. We also offer free delivery if the customer spends over £100 but as we sell both standard and zero rated products we often get complaints that they were charged shipping when their purchase was over £100 - eg £98 plus VAT but as the shipping is only free on the value less VAT then a delivery charge is applied.

Like you I would like it to be clear and consistent for all customers. I don't want to say it's Free on all purchases over £100 before VAT as the retail customers aren't interested in VAT they just want it to be free over £100.

If there's no clear solution do you know if version overcome this problem?

Cheers
Lesley

[DavidAM]

Hi David,

Did you manage to overcome this problem with Shipping and VAT. We also offer free delivery if the customer spends over £100 but as we sell both standard and zero rated products we often get complaints that they were charged shipping when their purchase was over £100 - eg £98 plus VAT but as the shipping is only free on the value less VAT then a delivery charge is applied.

Like you I would like it to be clear and consistent for all customers. I don't want to say it's Free on all purchases over £100 before VAT as the retail customers aren't interested in VAT they just want it to be free over £100.

If there's no clear solution do you know if version overcome this problem?

Cheers
Lesley

Hi Lesley,

No unfortunately I never managed to get a definitive answer to this problem. I've simply set the free amount as a net value instead ie £85.10 would give you the £100 but some customers might get free postage for less than £100 when they buy primarily tax free items. No angry customers but some frustration on my part.

Good luck


David

[LesleyN]

Hi david,

Thanks for getting back so quickly. I think we'll have to do the same as you and offer the Free shipping at the net rate. Most of our range is zero rated so this will affect most of our orders but it will stop the complaining and then having to refund the charges retrospectively.

Anything for an easier life....
many thanks
Lesley