Shipping 101: Tips and Tricks for Small Businesses

There is nothing more exciting than starting a new business. However, there are a few initial challenges that beset new business owners. Annoying bottlenecks and limitations start to rear their ugly heads and this is where most companies either fail or thrive. One of the biggest problems that nearly all companies face is shipping. Improper shipping management can disrupt your entire supply chain, create negative customer experiences and throw your cash flow out of balance. That is why it is important to learn about the key ways around optimizing your shipping. This will allow your small business to break through common plateaus while starting out and get you on the right path. Here is everything there is to know about optimizing your shipping process. 

Develop a solid strategy

Before making any important decisions, it is worth considering how a well-developed overarching plan for shipping could help you. Not every business is going to follow the same models and use the same systems. There are different target markets and needs to be considered. This is an opportunity to identify where your business falls into the picture regarding shipping. There are several things to include in your strategy. Firstly, consider where you are going to be selling the most. Initially, you might be selling locally out of your own center. However, as you scale up your business you might want to consider expanding your market and sell using different channels such as Amazon, eBay or even Walmart. Notice that each of these providers is going to have specific requirements and policies. In addition, consider who is going to do the shipping for you. For optimal results consider using custom-tailored shipping solutions. This will let you professionally handle all shipping challenges and eliminate common bottlenecks at every scale. 

Identify your expenses

Another big part of solving your shipping problems is going to include assessing the costs. Expenses associated with shipping can vary and it is important to identify all of the relevant factors that are going to affect your total cash flow. Make sure to check your carrier’s shipping policy and assess the most important points. Firstly, consider the speed as a major factor. Your customers will expect fast deliveries and, in most cases, they will expect free shipping. These factors will rack up your costs so it is important to consider how they fit into your overall plan. Some specific products might require more time to ship by default. In addition, consider the costs of any additional services such as insurance, packaging, shipment tracking and signature confirmation. Some of these costs might not be worth it to you depending on your situation. Moreover, the physical features of your products are also going to impact your shipping. Bigger and heavier products will cost more to ship. There is also the dimensional weight (DIM) to consider, which is the amount of space the package will take relative to the product’s weight. Lastly, consider the destination and the shipping volume as well. Your destination is going to include different shipping zones to consider. Whereas, volume will allow you to negotiate good rates with your carriers. 

Include free shipping

Once you have enough information about your average shipping costs it is going to be much easier to propose the so-called free shipping deals. This is a common practice done by most businesses where the actual shipping cost is included in the price of the product. However, without good estimates it can be tricky to offer “free” shipping, because you do not want to make drastic price jumps. In return you will be able to reap all the amazing benefits. A customer’s final decision when ordering your products is largely going to depend on whether the shipping is free or not. One of the ways in which businesses lose clients for good is when the customer notices extra shipping costs which ruin the overall perception of the deal.  

Refine your packaging protocols

One often overlooked aspect of shipping is packaging. This is because you are not only shipping the product itself but also all the necessary added packaging as well. Some products will require special packaging simply because the product might be very fragile. Factors like these are also going to determine the total cost of your shipping. Luckily, there are a few tricks that you can use to make the most out of your shipping. For instance, you can save a lot of time and money by reusing packaging. In your supply chain you will have plenty of supplies that are shipped to you in boxes. You can simply use these to repackage the products that you want to send. Not only will you be saving money, but your business will become much more sustainable as well. 

Buy in bulk

Some shipping carries will offer you good deals on packaging if you buy in bulk. However, you will need to be certain that the packaging will be used. Also, make sure that you have enough storage. If you monitor these factors, you will be able to save money consistently. 

Shipping products is an integral part of any business. How you manage your shipping will have a big impact on your overall cash flow. You can optimize your outcomes if you: develop a good strategy, identify the costs, offer free shipping, improve your packaging and buy it in bulk.