When you start an eCommerce business, you may think that attracting customers and getting the right inventory are the biggest challenges that you will face. In reality, you are likely to discover that it is shipping. In addition to being one of your biggest expenses, shipping and fulfillment can be extremely complex, especially for someone without experience. Don’t letting shipping issues get in the way of your business’ success. These tips will help.
Start by Knowing Your Shipping Costs
Customers want the best rates on shipping. To get the best idea of what those rates are—and how you can work shipping into your business budget—do your research on different shipping options. Investigate the different shipping rates that are available to you from delivery companies and how those rates change based on things like package size and weight. Weigh as many of your products as you can to get an idea of the true costs of most of your shipments. Don’t forget to factor packaging into your shipping costs. Some shipping companies offer free packaging, but you may prefer to have customized, branded packaging for your business.
Decide How to Apply Those Rates
Some businesses offer shipping rates that change based on the order, in essence passing on the exact shipping costs to the customers. Others charge a flat shipping rate. Flat rates work best if there aren’t huge variations in the weight of the items you’re likely to be shipping. Your flat shipping rate should average out in your favor, even if some packages cost you more to ship. If you want to offer free shipping, you will need to price your products so that they offset the cost of shipping.
Consider Using a Fulfillment Warehouse
Fulfillment warehouses hold your stock and fulfill your orders on your behalf. This setup can be helpful for eCommerce businesses, since it frees up your time and streamlines your costs.
Explore your options for shipping and using a warehouse for fulfillment by calling Xcel Delivery Services. We offer a variety of shipping and distribution services to allow customers to find the strategies that fit their needs. For more information about delivery services in Phoenix, call (602) 368-1300.
