Now that you've determined the proper pricing for your products, it's time to figure out how your products will reach your customers. Shipping through delivery services has always been the go-to method for all types of businesses, but how would you know how much you should charge for the shipping? How do you know if you're choosing the right carrier and which price is the best?
If you are a beginner in the e-commerce industry needing answers to these questions, we're here to help you. The variables to be considered are sometimes different for a large company and a small to medium enterprise or SME. Here is a guide on how to determine the best logistics company to partner with.
You can start checking and comparing the services of popular shipping carriers online, but before you decide on which delivery service to get, you'll want to consider the following questions first:
It is important to know the frequency of your shipping needs. The number will determine how much this business aspect will cost you in the long run. Moreover, shipping carriers have different business plans entrepreneurs can choose from. Using these packaged plans can help you save more instead of sticking to the individual shipments. You'll see the value clearly if you compare packages using your projected number of shipments for the month.
Weight is another factor you should consider. The pricing for product shipping also changes depending on product weight. Some shipping companies provide a chart on their site, featuring the weight and the equivalent cost for shipping, but for some, you'll need to ask for a quote.
To have an idea, weigh your products and list them out. We recommend you invest in a postal scale for your business. If not, you can always go to the nearest shipping center and ask them to weigh your items for you.
You can also consider signing up for the shipping company's flat rate box. In this service, if your product fits in their box, they'll ship it at the same price. Some carriers offer free flat rate boxes for specific delivery zones. Check if the shipping company you're eyeing offers this kind of service so you can run the numbers to see if getting this option can help you save money.
Is your product only available for shipping within the state? All around the US? Or are you also shipping internationally? The location you will ship the product to can affect the total cost of your shipping fee. If you're planning for a business with international shipping, factor this in.
Some carriers also need to know the shipping location first before they can give you a quotation. If you have no specific address in mind, ask them if they have a domestic zone chart. It contains the grouping of geographical areas that the carriers cater to. The map can help you measure the distance your package will have to travel. Use this as a guide, determine a zone, and ask for a ballpark estimate for a delivery service to your chosen destination.
The answer here will depend on the product you're selling. Some products need to be shipped ASAP or first-class. Again, you can refer to the zoning map and see how quickly your product can reach a certain destination to determine the type of priority you should get.
As mentioned earlier, you can get the flat rate box option of some carriers. However, if you want to customize and use your packaging, you can do so. Check which of the two options will cost you less.
Having the answers to these five questions will help you in your search for the perfect shipping provider. Aside from the mentioned factors in this article, make sure to check the credibility and reviews of the shipping company you're leaning towards.
We're a Miami-based logistics company ready to help you deliver your packages around town, across the country, or around the world. Contact us today to learn more about our custom delivery services!