Ways To Lower Your Shipping Costs
Shipping is not the most interesting part of an ecommerce business
, but can be one of the more challenging aspects. It can depend on the industry that you are in and the products that you ship. What you charge your customer for shipping can directly affect you conversion rate. Whether you are selling on eBay or have a website you could be paying and charging too much for shipping.You will want to identify if you are going to do it yourself or let someone do the shipping for you. If you choose to do it on your own, than you need to start with technology that will be needed. This technology can range from orders being received into shipping software, label and postage printing, tracking, and customer notifications. Any online business needs the correct technology to survive. Implementing effective shipping technology can alleviate overhead costs and make growth much easier to handle.
There is a variety of off the shelf shipping software that can ease the burden of shipping. Depending on your ecommerce platform the software can be easily integrated. Most software will receive the order from your ecommerce site, assign a shipping method based on your specifications, print the shipping label, and email the customer tracking and shipping information. Some may even be able to offer discount shipping or insurance rates.
Pros of Shipping Software:
-Easily integrates into popular ecommerce shopping carts such as eBay, Amazon, Yahoo stores.
-Can offer various shipping options to choose from.
-Automates the shipping process.
-Time Saving
-Typically fairly inexpensive.
Cons of Shipping Software:
-May not be integrated with your shopping cart, especially if it was custom built.
-No room for customization. You have to deal with the software as it is.
-You have to use the shipping companies integrated with the software.
Creating custom shipping software can eliminate the cons of off the shelf shipping software. By creating your own software you are able integrate it perfectly with your shopping cart and according to your business. Creating your own software can be costly in the beginning but can pay for itself over time.
Pros of Custom Shipping Software:
-Integrates perfectly with your shopping cart.
-Customized features to meet your shipping needs.
-Software is customized to meet you business growth.
Cons of Custom Shipping Software:
-May not have discounted shipping rates.
-The upfront cost can be a little daunting.
Not every startup business can spend the money to create custom shipping software. Another possibility could be a discount shipping company. This would require more manual work but can help save you money. Discount shipping companies have created relationships with major shipping companies and have negotiated discounted shipping rates. They can pass on these discounted rates to you. They are basically a reseller for the shipping companies. You will be required to prepare the shipments but usually the shipper will pick up the packages depending on the volume of shipments. This can be a good way to save money as you begin to ship.
Pros of Discount Shipping Companies:
-Discounted shipping rates that can instantly save you money.
-A liaison between you and the shipping company.
-Probably offers better and more personalized customer service than the shipping company.
Cons of Custom Discount Shipping Company:
-Manually preparing the packages to be sent.
-Does not save as much time as software.
Outsourcing can be another shipping possibility. Having another company handle the fulfillment and shipping of orders may be a smart way to go. This can take the headache out of doing it yourself. An outsourcing shipping company would warehouse your product, receive orders, and ship the product. You eliminate the need for overhead and do not have to deal with shipping software. This can be somewhat costly but depending on the volume that you ship could be very worthwhile. One of the downfalls of outsourcing could be the lost of day to day control. You are putting your faith into another company to fulfill the orders promptly. Make sure you do your homework when making your choice.
Pros of Outsourcing Fulfillment:
-No need to create a shipping system.
-Less employee cost and overhead.
-No need to create integrated software.
Cons of Custom Outsourcing Fulfillment:
-May not be realistic if you lack the volume.
-Can be costly.
-You relinquish some control offer fulfillment.
Here are few extra tips when trying to save on shipping.
-Most shipping providers offer volume discounts.
-Some shippers will offer discounts or extras for purchasing shipping online.
-Some shippers will provide free packaging. This can save a substantial amount over the course of a year.
-Discount shipping companies can be great in combination with some integrated shipping software. Create the automation and save with the discount shipping.
-Review all of the pros and cons of each shipping provider. Tracking, insurance, shipping cost, loss percentages, and on time rates can directly affect your business. Choose the best shipper for your customers and products.
There are many different ways to save money when shipping. Whether it is an off the shelf shipping software, custom software, or a discounted shipping company, you now know that the options are out there. Each business is different, so the solutions may vary. The trick is not to settle. As with any business you are trying to get an edge. Always keep a look out on ways to save on shipping.
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