Approach to Solution
We define important data metrics for the stores that will help in determining decision variable. Data points first will be collected for the existing shipping strategy which will act as a basis for all the comparisons. To arrive at most suitable shipping strategy, different shipping cost strategies would be implemented on the store for the duration of 10-14 days for each.
Once the trial period is ended, decision variable will be calculated for each strategy to check which new strategy brings highest 'Net Profit'.
Net Profit = Gross Profit + Shipping & Handling charges earnings – Total Additional shipping cost
Various shipping strategies are Free shipping, Threshold shipping (Free shipping above certain $ order), Fix shipping rate, Weight based shipping.