According to the United States Small Business Administration Office of Advocacy, there are 31.7 million small businesses in the country. Because many of these small businesses do not have any employees, it is vital that they learn how to do things efficiently.
Are you
a small business owner that wants to learn more about packing and shipping
products to your customers? Keep reading these 7 tips for small business
shipping!
1. Know What Goes Into Shipping Costs
One of
the most important shipping tips to follow is to learn what goes into shipping
costs. Many people expect free shipping that is fast and efficient. However,
this is simply not an option in many cases. There are many things that can
increase your shipping prices.
First,
you need to consider speed. How fast are you sending your product? Do you
advertise 2-day shipping?
If you are, it is likely that your shipping prices have jumped significantly.
Another
thing you need to consider is where you are shipping products. Obviously, the
farther you are sending your package, the more it will cost to ship it there.
This is why many small businesses only ship within their own country.
Finally,
you need to think about the weight and dimension of your packages. When you
have larger items, they will cost more to ship to your customers. This is why
it is important for you to keep your packaging simple and as minimal as
possible. Dimensional weight is
important to understand, as it can really raise the cost of your package. Determining DIM weight is done by using a
formula supplied by the carrier. UPS for example uses their own formula to determine DIM weights. There may also be additional charges, for example if your box is over a certain
length.
2. Buy Packaging in Bulk
Next,
you should consider buying packaging in bulk. This is one of the best packing
tips for those who have frequent orders and high shipping volume. Your product
packaging can drive up your overhead costs, so buying packaging in bulk can
save you a lot of money!
This
will also help you protect your products. When you are shipping a lot of products,
it is likely that some may be damaged in transit. However, when you have the
proper material and packaging, you can protect your orders and keep them from
getting damaged as they are getting shipped.
Shipping Supplies may include:
- Boxes
- Tape
- Bubble Wrap
- Foam
- Newsprint
- Labels
Getting
the right shipping
products can make a big difference in your product safety!
3. Consider Different Carriers
There
are many shipping carriers that you can work with when you are packing and
shipping your products to customers. The most common carriers are USPS, also
known as the United States Postal Service, FedEx, and UPS. Depending on the
carrier you choose, the pricing, delivery options, and more may vary.
Many of
these carriers also offer programs specifically for small businesses in the
area. For example, FedEx offers a rewards program for small businesses and
startups. The Small Business Program through UPS also allows you to schedule
pickups and deal with customer returns more easily.
Be sure
to contact your carrier to negotiate the best possible rates for your business.
By
considering each different carrier and what they have to offer, you will be
able to ship your products with more confidence.
4. Insurance Options
Something
else you should consider when shipping products to your customers is if you
will offer insurance options. According to a report by the New York
Times, 1.7 million
packages disappear each day. Most customers do not want to pay
for insurance, so perhaps consider including it in the price of your product
and offer it as free insurance.
Rather
than paying the high prices of insurance for your company, you can consider
using a third-party insurance option. It is especially important to have
insurance options if you sell valuable items or electronics to customers.
5. Offer Tracking
Many
people who worry about their packages going missing or getting stolen like to
be able to track their products. When you offer tracking options, you show that
your company is transparent and that you care about your customers.
When
you use larger shipping carriers, they often have tracking information
available. This means your customers can get notified when their package is
shipped, delivered, and more.
While
offering tracking may give you more work as a business owner, it is worth it to
keep your clients happy!
6. Is Fulfillment Worth the Money?
As a
business owner, you may not be able to handle the number of orders that come
your way. If this is the case, you may want to consider whether or not using a
fulfillment center is worth the money!
These
companies can ship your products for you, rather than sending them to you for
packaging and shipping. However, fulfillment centers can be very expensive to
use. If you do not have enough sales to justify the cost, you can easily hire
additional help or continue shipping products by yourself!
Think
about the costs versus the benefits to see whether or not it is worth the
additional money.
7. Offer Free Shipping When You Can
Finally,
it is best to offer free shipping when you can. This is not always an option
and offering it too often may lose you money. However, many companies offer
free shipping when customers spend over a certain amount of money.
This is
a great tactic and may result in more sales. You can use free calculators
online that will help you identify the threshold when you can afford to offer
free shipping. If you always want to offer free shipping, you can include
the cost of shipping your product in the base price.
Get Help With Packing and Shipping Today
Learning
the right strategies for effective packing and shipping can be difficult. However,
when you follow these tips, you will find that it is much easier to deliver
your product to your clients! Do you need help with packing and shipping?
Pack
Secure can help! We offer packaging and shipping supplies that make it easier
and more efficient for you to deliver your products. Contact our team
today to learn more about the products we offer!
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