6% shipping and 4% for operations related to warehousing and fulfillment… are pretty typical.
If you are running much higher than that look into it… of course every business is different.
Showing posts with label Order Fulfillment. Show all posts
Showing posts with label Order Fulfillment. Show all posts
Sunday, December 16, 2012
Saturday, December 15, 2012
What is the latest you can ship a package to still arrive by Christmas?
What is the latest you can ship a package to still arrive by Christmas? Here are some guidelines...
____________________
Click here for a Delivery Dashboard to keep track of your small package deliveries.
____________________
Click here for a Delivery Dashboard to keep track of your small package deliveries.
Friday, November 30, 2012
How to find the best order fulfillment vendor for your online store
Perhaps the most important thing to look at when evaluating ecommerce order fulfillment centers is to find one that has experience working with online retailers that sell products like yours.
Here are some reasons why:
- the fulfillment center will know how to package the products for shipping in a way to minimize damages and minimize the amount of packing materials needed
- they'll already have boxes in that size which will help keep costs down because they can buy them in greater volumes
- their shelving and racks will be set up to accommodate the size and shapes of your products which makes their operation more efficient and lowers their cost to store your products
Here are some reasons why:
- the fulfillment center will know how to package the products for shipping in a way to minimize damages and minimize the amount of packing materials needed
- they'll already have boxes in that size which will help keep costs down because they can buy them in greater volumes
- their shelving and racks will be set up to accommodate the size and shapes of your products which makes their operation more efficient and lowers their cost to store your products
Monday, May 9, 2011
Thinking of using offsite storage services?
If you are a manufacturer, or any business that has a need to warehouse and storage products then you may have considered outsourcing as an alternative to keeping the product in your own building. So, what are the costs that go into using a 3rd party warehouse for this service that you should be aware of.
Storage Costs (of course), which are typically charged by the month and on a per pallet or square foot basis.
In/ Out Charges are the handling charges for physically unloading the product off the trucks and putting them away in the warehouse, and then loading them on trucks again when they leave the facility.
Paperwork Fees are the cost for preparing shipping paperwork like the Bill of Lading Form.
Pallet Preparation Fees can include the cost of adding shrink wrap, re-palletizing boxes, or other labor costs involved in getting pallets ready to ship out of the warehouse.
_________________________________________
Ken Kowal is Director of New Business Development for Landis Logistics and FillShip.com, serving online retailers and manufacturers with order fulfillment and warehousing services in the PA, NJ, and NY area.
Storage Costs (of course), which are typically charged by the month and on a per pallet or square foot basis.
In/ Out Charges are the handling charges for physically unloading the product off the trucks and putting them away in the warehouse, and then loading them on trucks again when they leave the facility.
Paperwork Fees are the cost for preparing shipping paperwork like the Bill of Lading Form.
Pallet Preparation Fees can include the cost of adding shrink wrap, re-palletizing boxes, or other labor costs involved in getting pallets ready to ship out of the warehouse.
_________________________________________
Ken Kowal is Director of New Business Development for Landis Logistics and FillShip.com, serving online retailers and manufacturers with order fulfillment and warehousing services in the PA, NJ, and NY area.
Sunday, April 3, 2011
Wednesday, March 30, 2011
Leveraging Technology for Your Order Fulfillment Operation
Technology is the cornerstone of a well-running order fulfillment operation, whether it’s helping to manage orders, control inventory and warehouse operations, manage freight, or support real-time reporting requirements. It’s through technology that guess-work is eliminated from the order fulfillment pick and pack process, human error is reduced, and products and content go to market faster and at lower cost.
When it comes to fulfillment-related technology and systems, there are no absolute solutions. One size does not fit all or even most companies. Moreover, implementing a technology infrastructure to support your fulfillment operations is not only about hardware and software systems. Savvy companies and marketers use technology as an enabler to gain process efficiencies, access mission-critical information, and run their businesses better.
Here’s a quick litmus test. Take a quick look at your existing order fulfillment services operations: is the technology you rely on flexible, giving you room to grow and adapt to change? Does it support the flow of information seamlessly through the entire order fulfillment process - from order entry through to shipment? Can you access data and generate reports in real time to support critical decision-making? Are you making technology investments in the processes that need them most? Whether you are utilizing the expertise of a third party fulfillment provider or managing your logistics and operations internally, all of these are important considerations whether you are a startup order fulfillment operation or large multi-location operation.
As you assess your technology strategy to support new business initiatives or enhance your existing infrastructure, here are some insights that will put you on the right path:
Start With Strong People
The foundation of a strong fulfillment infrastructure is having expert, knowledgeable information technology (IT) professionals supporting your program - either in-house or through your outsourced fulfillment partner. IT professionals who understand technology and are experienced in the business side of fulfillment can provide your company with important, big-picture expertise. Additionally, in the outsourcing model, if your fulfillment provider does not offer value-added technology related services as a core competency (i.e., e-commerce site development) they should have partnerships in place to provide the support you need in a seamless manner.
Ensure Flexibility on the Front End
A flexible fulfillment technology infrastructure starts on the front end with the intake of order data. Your fulfillment partner should have the capability in their order management system to accept orders from various ordering mechanisms: e-commerce, call center, electronic data interchange, file transfer protocol (flat file, text file, XML, etc), and others. Order management systems built on flexible technologies such as enterprise resource planning (ERP) can be easily adapted to support your changing requirements.
Keep Data Flowing Through the System
Customer order information should move seamlessly from the front end to the warehouse/inventory management platform and ultimately through to final shipping. By automating the flow of information through the fulfillment environment, technology can facilitate faster, high quality order processing and shipment. Moreover, your fulfillment provider should offer you the ability to view critical customer order data at all points in the process. Real time data access will help you make more informed decisions related to production requirements, inventory levels, and customer buying patterns, while providing visibility into areas where costs could be reduced.
Use Technology to Improve Process Control and Fulfillment Accuracy
In the picking and packing of orders, technology can be an important enabler to further speed up the order fulfillment process and maximize quality. Technologies such as radio frequency identification (RFID) and bar coding can facilitate “system directed picking” helping the fulfillment provider’s employees to pick and pack high volume, complex orders where there is little margin for error.
Invest in the Processes that Need it Most
Simply put, some fulfillment processes don’t require technologies like RFID or bar coding to get the job done. The critical determining factors are speed and quality. For example, some fulfillment programs, like literature distribution, are less technology-dependent. Here, a manually driven pick and pack process can still meet time to market goals.
Lower Costs in Transportation Management
In the transportation management area, technology can be a further enabler to reduce the costs of your fulfillment program. Leveraging rate shopping programs, your order fulfillment pick and pack partner can work to compare carriers and select the most effective options for each shipment. This can help reduce overall freights costs while continuing to ensure prompt customer delivery.
Maintaining Your Lifeline to the Customer
Since information is the lifeblood of your decision making process, you need data on all facets of your fulfillment program. including inventory, orders and more and you need it in a real time manner. Leveraging technology, your partner should offer you the capability to extract data from the fulfillment infrastructure and generate real time reports in the format you require. Access should be easy and at your convenience online 24 hours a day giving you an instant, on-demand snapshot of your critical business activity.
_____________
Ken Kowal is Director of Sales and Marketing for Landis Logistics, which specializes in ecommerce order fulfillment for startup and online retailers.
When it comes to fulfillment-related technology and systems, there are no absolute solutions. One size does not fit all or even most companies. Moreover, implementing a technology infrastructure to support your fulfillment operations is not only about hardware and software systems. Savvy companies and marketers use technology as an enabler to gain process efficiencies, access mission-critical information, and run their businesses better.
Here’s a quick litmus test. Take a quick look at your existing order fulfillment services operations: is the technology you rely on flexible, giving you room to grow and adapt to change? Does it support the flow of information seamlessly through the entire order fulfillment process - from order entry through to shipment? Can you access data and generate reports in real time to support critical decision-making? Are you making technology investments in the processes that need them most? Whether you are utilizing the expertise of a third party fulfillment provider or managing your logistics and operations internally, all of these are important considerations whether you are a startup order fulfillment operation or large multi-location operation.
As you assess your technology strategy to support new business initiatives or enhance your existing infrastructure, here are some insights that will put you on the right path:
Start With Strong People
The foundation of a strong fulfillment infrastructure is having expert, knowledgeable information technology (IT) professionals supporting your program - either in-house or through your outsourced fulfillment partner. IT professionals who understand technology and are experienced in the business side of fulfillment can provide your company with important, big-picture expertise. Additionally, in the outsourcing model, if your fulfillment provider does not offer value-added technology related services as a core competency (i.e., e-commerce site development) they should have partnerships in place to provide the support you need in a seamless manner.
Ensure Flexibility on the Front End
A flexible fulfillment technology infrastructure starts on the front end with the intake of order data. Your fulfillment partner should have the capability in their order management system to accept orders from various ordering mechanisms: e-commerce, call center, electronic data interchange, file transfer protocol (flat file, text file, XML, etc), and others. Order management systems built on flexible technologies such as enterprise resource planning (ERP) can be easily adapted to support your changing requirements.
Keep Data Flowing Through the System
Customer order information should move seamlessly from the front end to the warehouse/inventory management platform and ultimately through to final shipping. By automating the flow of information through the fulfillment environment, technology can facilitate faster, high quality order processing and shipment. Moreover, your fulfillment provider should offer you the ability to view critical customer order data at all points in the process. Real time data access will help you make more informed decisions related to production requirements, inventory levels, and customer buying patterns, while providing visibility into areas where costs could be reduced.
Use Technology to Improve Process Control and Fulfillment Accuracy
In the picking and packing of orders, technology can be an important enabler to further speed up the order fulfillment process and maximize quality. Technologies such as radio frequency identification (RFID) and bar coding can facilitate “system directed picking” helping the fulfillment provider’s employees to pick and pack high volume, complex orders where there is little margin for error.
Invest in the Processes that Need it Most
Simply put, some fulfillment processes don’t require technologies like RFID or bar coding to get the job done. The critical determining factors are speed and quality. For example, some fulfillment programs, like literature distribution, are less technology-dependent. Here, a manually driven pick and pack process can still meet time to market goals.
Lower Costs in Transportation Management
In the transportation management area, technology can be a further enabler to reduce the costs of your fulfillment program. Leveraging rate shopping programs, your order fulfillment pick and pack partner can work to compare carriers and select the most effective options for each shipment. This can help reduce overall freights costs while continuing to ensure prompt customer delivery.
Maintaining Your Lifeline to the Customer
Since information is the lifeblood of your decision making process, you need data on all facets of your fulfillment program. including inventory, orders and more and you need it in a real time manner. Leveraging technology, your partner should offer you the capability to extract data from the fulfillment infrastructure and generate real time reports in the format you require. Access should be easy and at your convenience online 24 hours a day giving you an instant, on-demand snapshot of your critical business activity.
_____________
Ken Kowal is Director of Sales and Marketing for Landis Logistics, which specializes in ecommerce order fulfillment for startup and online retailers.
Selling online and thinking of outsourcing your shipping and order fulfillment?
If you have an online store and are finding it tough to keep up with packing and shipping your customer orders, it may be time to think about working with a 3rd party order fulfillment center. But like all the other difficult business decisions a growing company has to make, it is important to understand all the costs associated with outsourcing your shipping operation to an outside company. The following is a breakdown of the general areas of cost a typical business will face when bringing on an order fulfillment service resource. Each company's needs and situation are different, but understanding these costs is vital to making the best business decision possible to position your company for maximum future growth.
Storage Costs: Fulfillment centers will charge storage or "rent" for the space a retailer’s products take up in the warehouse. This is generally done on a per square foot basis or by the pallet.
Inventory Inspection and Receipt: Since most online retailers are having their suppliers ship the products directly to an order fulfillment warehouse, the online retailer is not able to inspect the shipments to make sure the products are the correct quantity and in good condition. A fulfillment center becomes that extra check to make sure the supplier is sending the right products and will report any discrepancies to the client.
Order Charges: Packing orders is the main part of the whole order fulfillment service, although not necessarily the largest cost. These are the labor costs for preparing and boxing up orders. The rates are generally based on a flat per order fee, plus a cost for each additional item included in the order. The more orders a retailer ships with a fulfillment company the lower the per order cost will be for the most part. The order cost is intended to cover the systems and time to receive the order, prep the pick ticket and other paperwork, as well as the time to physically build the carton, locate and pick the items on the order.
Material Costs: Simply stated, material costs include the cost of cartons and packing materials. Most fulfillment centers are buying boxes in bulk so this is one area a 3rd party fulfillment center can help reduce costs.
Shipping Costs: These costs will make up the majority of the expense of getting products to customers. Here's a link to reference useful information on calculating costs for shipping small packages. Many fulfillment operations will allow their customers to ship on their account numbers with FedEx and UPS, thus providing better shipping rates than most customers could negotiate on their own.
Returns: As some products are inevitably returned from a retailer’s customers, the fulfillment center can help inspect items and report to the retailer details on the returns.
Initial Move: There is often an initial inventory move of products from the online retailer to the fulfillment warehouse. This means there are potential costs for the shipping and receipt of the products as they are brought into the fulfillment center.
System Integration: The process for integrating an online retailer’s ecommerce shopping cart software may require some customized programming expense. How orders get communicated to the fulfillment warehouse can happen in a variety of ways (EDI, API, Email, or even fax).
Some fulfillment centers will offer bundled pricing that includes a certain amount of storage space and a certain number of orders shipped in a period of time. Or, the fulfillment charges may be calculated as a percentage of sales. There is nothing wrong with either method of pricing, just be certain the rates accurately reflect your true activity levels.
_________________________________
Kenneth Kowal ecommerce order fulfillment.
Storage Costs: Fulfillment centers will charge storage or "rent" for the space a retailer’s products take up in the warehouse. This is generally done on a per square foot basis or by the pallet.
Inventory Inspection and Receipt: Since most online retailers are having their suppliers ship the products directly to an order fulfillment warehouse, the online retailer is not able to inspect the shipments to make sure the products are the correct quantity and in good condition. A fulfillment center becomes that extra check to make sure the supplier is sending the right products and will report any discrepancies to the client.
Order Charges: Packing orders is the main part of the whole order fulfillment service, although not necessarily the largest cost. These are the labor costs for preparing and boxing up orders. The rates are generally based on a flat per order fee, plus a cost for each additional item included in the order. The more orders a retailer ships with a fulfillment company the lower the per order cost will be for the most part. The order cost is intended to cover the systems and time to receive the order, prep the pick ticket and other paperwork, as well as the time to physically build the carton, locate and pick the items on the order.
Material Costs: Simply stated, material costs include the cost of cartons and packing materials. Most fulfillment centers are buying boxes in bulk so this is one area a 3rd party fulfillment center can help reduce costs.
Shipping Costs: These costs will make up the majority of the expense of getting products to customers. Here's a link to reference useful information on calculating costs for shipping small packages. Many fulfillment operations will allow their customers to ship on their account numbers with FedEx and UPS, thus providing better shipping rates than most customers could negotiate on their own.
Returns: As some products are inevitably returned from a retailer’s customers, the fulfillment center can help inspect items and report to the retailer details on the returns.
Initial Move: There is often an initial inventory move of products from the online retailer to the fulfillment warehouse. This means there are potential costs for the shipping and receipt of the products as they are brought into the fulfillment center.
System Integration: The process for integrating an online retailer’s ecommerce shopping cart software may require some customized programming expense. How orders get communicated to the fulfillment warehouse can happen in a variety of ways (EDI, API, Email, or even fax).
Some fulfillment centers will offer bundled pricing that includes a certain amount of storage space and a certain number of orders shipped in a period of time. Or, the fulfillment charges may be calculated as a percentage of sales. There is nothing wrong with either method of pricing, just be certain the rates accurately reflect your true activity levels.
_________________________________
Kenneth Kowal ecommerce order fulfillment.
Tuesday, June 29, 2010
Eco-Friendly Packing Materials For Ecommerce Order Fulfillment
The most ubiquitous packaging materials at ecommerce order fulfillment operations are of course bubble wrap and peanuts. The pros and cons of both are well documented, but the most important thing to know is they are typically made from plastics (as in oil) and are not bio-degradable. With the amount of bubble wrap and peanuts used around the world each day the problem is pretty self evident.
These products are made from some pretty nasty stuff Polyethylene, Polystyrene and Polyurethane (which consists of all sorts of harsh chemicals including acetone, methylene chloride and fluorocarbons).
Aside from the toxic chemicals used with most plastic based packing materials and the huge energy resources that going into creating them; the amount of landfill taken up after they are discarded is significant.
Here are some ideas for alternative packaging options to consider using when preparing your customer orders for shipment.
Soy based expandable foam products are a more eco-friendly option. Derived from soy, and therefore renewable and biodegradable, this product conforms precisely to the shape of your products. This maximizes protection by minimizing movement on the inside of the carton. The product is also very light weight, reducing the additional shipping expense of heavier materials. Realistically expandable foam is best for larger operations due to the space the specialized equipment and process will require.
Consider using old newspapers as they can also be a good option as well. Shredded or balled up newspaper has decent cushioning ability. My opinion is that shredded paper has a neat look in the box and adds some “eco-cred” to your products. Aaesthetically the balled up news print leave a little to be desired, and there is no efficient way to “ball up” enough paper to keep up with a high volume fulfillment operation. Shredded paper, although requiring an extra step (to shred) does led itself to a higher volume set up.
Again, it’s not as pretty, but old cardboard boxes can be cut into strips and then rolled tightly. Place the rolls vertically into the packing box around the item in the box, the rolls will then expand providing a cushion. Similar to newsprint, if some care is taken up front to cut or prepare the boxes neatly the end product could work in a way that looks good to your customers.
Reusing something like paper or cardboard for packaging is always preferable to recycling, and of course, MUCH better than throwing those items away. Cushion packaging is sold that is made from one hundred percent post consumer waste paper – give that a try if you don’t like the look of used newspapers.
Biodegradable packing peanuts are available, made from grain sorghum and corn starch. For environmentally friendly soft foam in rolls, starch-based products such as GreenCell have the added bonus of being anti-static which is great for cushioning computer parts and electronic equipment.
For wrapping and packaging inside the box, use or reuse something. And the same goes for the cartons you are using - go for boxes made from recycled cardboard. The options these days for recycled corrugated boxes are very diverse and any place selling boxes will likely provide these product options as well .
Ken is a 15 year veteran of logistics and supply chain operations. He has founded companies in the ecommerce order fulfillment and transportation management system markets.
These products are made from some pretty nasty stuff Polyethylene, Polystyrene and Polyurethane (which consists of all sorts of harsh chemicals including acetone, methylene chloride and fluorocarbons).
Aside from the toxic chemicals used with most plastic based packing materials and the huge energy resources that going into creating them; the amount of landfill taken up after they are discarded is significant.
Here are some ideas for alternative packaging options to consider using when preparing your customer orders for shipment.
Soy based expandable foam products are a more eco-friendly option. Derived from soy, and therefore renewable and biodegradable, this product conforms precisely to the shape of your products. This maximizes protection by minimizing movement on the inside of the carton. The product is also very light weight, reducing the additional shipping expense of heavier materials. Realistically expandable foam is best for larger operations due to the space the specialized equipment and process will require.
Consider using old newspapers as they can also be a good option as well. Shredded or balled up newspaper has decent cushioning ability. My opinion is that shredded paper has a neat look in the box and adds some “eco-cred” to your products. Aaesthetically the balled up news print leave a little to be desired, and there is no efficient way to “ball up” enough paper to keep up with a high volume fulfillment operation. Shredded paper, although requiring an extra step (to shred) does led itself to a higher volume set up.
Again, it’s not as pretty, but old cardboard boxes can be cut into strips and then rolled tightly. Place the rolls vertically into the packing box around the item in the box, the rolls will then expand providing a cushion. Similar to newsprint, if some care is taken up front to cut or prepare the boxes neatly the end product could work in a way that looks good to your customers.
Reusing something like paper or cardboard for packaging is always preferable to recycling, and of course, MUCH better than throwing those items away. Cushion packaging is sold that is made from one hundred percent post consumer waste paper – give that a try if you don’t like the look of used newspapers.
Biodegradable packing peanuts are available, made from grain sorghum and corn starch. For environmentally friendly soft foam in rolls, starch-based products such as GreenCell have the added bonus of being anti-static which is great for cushioning computer parts and electronic equipment.
For wrapping and packaging inside the box, use or reuse something. And the same goes for the cartons you are using - go for boxes made from recycled cardboard. The options these days for recycled corrugated boxes are very diverse and any place selling boxes will likely provide these product options as well .
Ken is a 15 year veteran of logistics and supply chain operations. He has founded companies in the ecommerce order fulfillment and transportation management system markets.
Monday, June 7, 2010
New website for ecommerce retailers is Live! Fillship.com
We are proud to announce that the new FillShip.com website is live.
FillShip operates its ecommerce order fulfillment operation from a state of the art 600,000 sq ft food grade storage facility in eastern PA. The fulfillment customer portfolio ranges across a variety of customers, from frozen food to consumer electronics.
The FillShip value proposition:
Fillship.com is your shipping assistant. Focus on growing your business, and Fillship will take care of storing and shipping your product. Simply send us your merchandise to store – and when a customer places an order we take care of packing and shipping the order. Our east coast location promises you the quickest delivery and lowest shipping costs to the majority of the US population. Simple set up with professional program management.
Inquiries: customerservice@fillship.com or call 717.889.8509 or http://www.fillship.com/.
Thanks to Rob Tompkins at Landis Logistics for his support.
Fillship is an affiliate of TMS provider, eRoutingGuide.
FillShip operates its ecommerce order fulfillment operation from a state of the art 600,000 sq ft food grade storage facility in eastern PA. The fulfillment customer portfolio ranges across a variety of customers, from frozen food to consumer electronics.
The FillShip value proposition:
Fillship.com is your shipping assistant. Focus on growing your business, and Fillship will take care of storing and shipping your product. Simply send us your merchandise to store – and when a customer places an order we take care of packing and shipping the order. Our east coast location promises you the quickest delivery and lowest shipping costs to the majority of the US population. Simple set up with professional program management.
Inquiries: customerservice@fillship.com or call 717.889.8509 or http://www.fillship.com/.
Thanks to Rob Tompkins at Landis Logistics for his support.
Fillship is an affiliate of TMS provider, eRoutingGuide.
Wednesday, June 2, 2010
Press Release - ShipStarter.com: Turnkey Order Fulfillment Services for Online Retailers
Press Release:
May 24, 2010 - Lancaster, Penn.
ShipStarter.com announces new turnkey order fulfillment services catering to small and medium size ecommerce businesses.
ShipStarter operates its ecommerce order fulfillment operation from a state of the art 200,000 sq ft food grade storage facility in eastern PA (serving New York and New Jersey and clients nationally). The fulfillment customer portfolio ranges across a variety of customers, from frozen food to consumer electronics.
The Order Fulfillment value proposition:
ShipStarter.com is your shipping assistant. Focus on growing your business, and Fillship will take care of storing and shipping your product. Simply send us your merchandise to store – and when a customer places an order we take care of packing and shipping the order. Our east coast location promises you the quickest delivery and lowest shipping costs to the majority of the US population. Simple set up with professional program management.
Fillship is an affiliate of eRoutingGuide, Transportation Management System.
Logistics Fuel Surcharges
May 24, 2010 - Lancaster, Penn.
ShipStarter.com announces new turnkey order fulfillment services catering to small and medium size ecommerce businesses.
ShipStarter operates its ecommerce order fulfillment operation from a state of the art 200,000 sq ft food grade storage facility in eastern PA (serving New York and New Jersey and clients nationally). The fulfillment customer portfolio ranges across a variety of customers, from frozen food to consumer electronics.
The Order Fulfillment value proposition:
ShipStarter.com is your shipping assistant. Focus on growing your business, and Fillship will take care of storing and shipping your product. Simply send us your merchandise to store – and when a customer places an order we take care of packing and shipping the order. Our east coast location promises you the quickest delivery and lowest shipping costs to the majority of the US population. Simple set up with professional program management.
Fillship is an affiliate of eRoutingGuide, Transportation Management System.
Logistics Fuel Surcharges
Friday, May 21, 2010
Shipping Considerations for Online Ecommerce Retailers
A significant expense for any online retailer is the order fulfillment process which includes the storing, packaging, and shipping of a customer’s orders. This is beyond the cost of sourcing the merchandise, regardless of what the business sells, plus marketing and other cost of sales expenses. Taken in total, all these costs have to be managed effectively for a business to maintain profit margins. A positive margin is obviously vital to the success for any online retailer. The good news is making the right decisions regarding the storing, packaging, and shipping components could possibly be the easiest to influence on that list with the most substantial impact for the betterment of your business.
The following are three main cost considerations for start up online retailers when it comes to shipping.
1 – Supplies. These include the packaging material (or dunnage) to fill around and protect the merchandise as well as the carton itself.
2 – Direct Shipping Costs. Your selection of who ships the order (USPS, UPS, Fed Ex?) and at what service level (Ground, Next Day Air, etc.) impact costs tremendously.
3 – Your Time. Is packing boxes, dealing with storage, and printing shipping labels the best use of your time? As a small business owner you should be asking yourself constantly throughout the day – Is what I am doing right now helping to make my business more successful?
Supplies – Basic shipping cartons in a limited range of sizes are free from the USPS, Fed Ex, and UPS. That’s a good option if what you are shipping fits and is not either too big or too small. Shipping a lot of empty space in every box with your merchandise is not efficient and many businesses prefer to exert more control over the customer experience with custom or specialized packaging for shipping orders. The packing material used to protect the merchandise comes in a lot of options – with some even being eco-friendly (such as styrofoam “popcorn” and expandable foam made from soy). The additional expense of customized packing materials and cartons has to be considered.
Direct Shipping Costs – The 3 main options for shipping small packages in the US are the USPS, UPS, and Fed Ex. All three offer a form of Ground (slowest and cheapest service) as well as several expedited (overnight, 2 day, etc.) delivery services. Volume speaks when you ship with UPS and Fed Ex so talk to your rep about volume discounts that will kick in once you hit certain volume thresholds. Watch out for residential delivery charges with UPS and Fed Ex. USPS pricing is generally lower – but service time are also generally slower and there are less shipment tracking options for the order as well. There is a hybrid solution in which a company (could be UPS, or DHL Globalmail, or several others) acts as a “mail integrator”. These companies pick up on their own trucks but then take the packages to the USPS who takes care of the final delivery. This set up works best in a business to consumer model and requires a minimum daily quantity of packages (usually about 250 per day).
Your Time – Again, is printing shipping labels the best use of your time? The excitement and desire to grow a business is what motivates most online business owners. Focus on helping customers fill their shopping carts.
The following are three main cost considerations for start up online retailers when it comes to shipping.
1 – Supplies. These include the packaging material (or dunnage) to fill around and protect the merchandise as well as the carton itself.
2 – Direct Shipping Costs. Your selection of who ships the order (USPS, UPS, Fed Ex?) and at what service level (Ground, Next Day Air, etc.) impact costs tremendously.
3 – Your Time. Is packing boxes, dealing with storage, and printing shipping labels the best use of your time? As a small business owner you should be asking yourself constantly throughout the day – Is what I am doing right now helping to make my business more successful?
Supplies – Basic shipping cartons in a limited range of sizes are free from the USPS, Fed Ex, and UPS. That’s a good option if what you are shipping fits and is not either too big or too small. Shipping a lot of empty space in every box with your merchandise is not efficient and many businesses prefer to exert more control over the customer experience with custom or specialized packaging for shipping orders. The packing material used to protect the merchandise comes in a lot of options – with some even being eco-friendly (such as styrofoam “popcorn” and expandable foam made from soy). The additional expense of customized packing materials and cartons has to be considered.
Direct Shipping Costs – The 3 main options for shipping small packages in the US are the USPS, UPS, and Fed Ex. All three offer a form of Ground (slowest and cheapest service) as well as several expedited (overnight, 2 day, etc.) delivery services. Volume speaks when you ship with UPS and Fed Ex so talk to your rep about volume discounts that will kick in once you hit certain volume thresholds. Watch out for residential delivery charges with UPS and Fed Ex. USPS pricing is generally lower – but service time are also generally slower and there are less shipment tracking options for the order as well. There is a hybrid solution in which a company (could be UPS, or DHL Globalmail, or several others) acts as a “mail integrator”. These companies pick up on their own trucks but then take the packages to the USPS who takes care of the final delivery. This set up works best in a business to consumer model and requires a minimum daily quantity of packages (usually about 250 per day).
Your Time – Again, is printing shipping labels the best use of your time? The excitement and desire to grow a business is what motivates most online business owners. Focus on helping customers fill their shopping carts.
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