Small Business Shipping: Improving Process Flow

Your business success depends on how you manage your workflow. Aside from a variety of management procedures, shipping plays a huge role in these processes. In most cases, it is a deciding factor whether you’ll make it or break it in the industry.

In this day and age, the pace of consumer demand has never been higher. Customers are raising the bar when it comes to the delivery and receipt of their purchase. Then there’s the fact that customers demand greater supply-chain transparency, forcing fulfillment procedures into the limelight.

Shipping 101

Understanding how shipping processes work is crucial, especially for start-up companies. Before you can finalize shipping services and methods in your business, you must first learn basic knowledge and important considerations.

Service and Speed

Because of our existing industry, the majority of consumers are anticipating faster delivery and shipping options. To add, most of them want these services to be free of charge. Generally speaking, the more expedited the delivery service is, the greater the shipping fee is. While speedy services might reduce your overall cost, they’re not the only thing to consider.

Carrier services vary widely depending on various circumstances; thus, there is no universally applicable answer. That’s why to ship at a reasonable price, it is critical to match the correct service with the right request. Understanding the shipping needs of your items can help you get a better idea of how much shipping will cost.

Dimension and Weight

Product dimension and weight is no exception when it comes to shipping fees. That said, larger and heavier packages cost more to transport. Although carriers and services have various limitations, rating schemes, and criteria, they always use weight and size to compute transportation costs.

If you want to get the best price, always be mindful of your package measurements. You can calculate the dimensional weight of a balikbayan box with a simple equation. Get the product of length, width, and height and divide it by its divisor.

Distance

Another factor that affects shipping costs is the distance between the recipients and the shipper. Many carriers refer to zones for their domestic rates. It might be hard to keep track of each carrier’s zones that apply specifically to your shipping location. In that case, using a multi-carrier pricing calculator can save you more time and effort.

The following are a few points to bear in mind when shipping to outside countries:

Product

Some countries prohibit items from entering their zones. These can vary depending on the destination. For instance, shipping cards to Brazil is against the law. More so, collectible stamps are not acceptable to deliver to France.

Taxes and Documents

Shipping abroad will bring extra taxes and regulations such as Value Added Tax, levies, and customs declarations. These prices apply even if the conditions don’t consider it as carrier fees.

Policy and Pricing

Selling abroad is more expensive, so ensure that you know the required measures to charge and estimate shipping for your international clients.

Managing Your Shipping Process

woman writing on a package

Like you, carriers favor clients that are loyal and use their services frequently. As you start with your business venture, it pays to build a connection with your carrier provider. Doing so will allow you to take advantage of additional perks, such as delivery savings.

To get the greatest carrier, service, and pricing, most online sellers utilize numerous carriers. So, don’t be afraid to look into your alternatives.

Managing Returns

Even the most well-known and highly rated items in the world get minor defects. So, it’s not surprising that some consumers would request a return. The way you handle these returns determines your readiness.

A purchasing choice is a trade-off between the potential for risk and profit. The danger of buying something online is greater since you can’t physically handle or check it before purchasing. By having a return policy, you are assuring your consumers. This way, they will be more inclined to buy from you again.

Shipping Charges

Now that you understand what factors influence shipping costs, you must decide how much you charge your consumers for shipment. Every company strives to save costs while remaining competitive and appealing to customers. The best choice depends on your company’s demands, and you can choose alternative ways for different circumstances.

Wrapping Up

Getting started with an effective shipping strategy for your company has never been easier. You should not consider shipment a cost center in your company’s budget. Consider it a natural extension of your company’s identity and customer experience. If you do it correctly, you might even be able to use shipping as a competitive advantage to help your company expand and scale.

Scroll to Top