Managing Shipping Costs

This is a broad subject with a lot of possible recommendations so, for the purposes of this newsletter, we’ll simply highlight a checklist of what small businesses can do to maintain profitability and provide good value to customers.

1.    Research shipping options – Look at different carriers, services, and pricing options. Compare rates, delivery times, and reliability

2.    Negotiate rates – Possible if you have a consistent, regular volume of shipments

3.    Accurately weigh and measure – Ensure your packages have the correct dimensions and weights to avoid higher shipping costs

4.    Packaging efficiency – Minimize excess space and weight by using packaging appropriately specified for your products

5.    Zone optimization – Understand how shipping zones work including zone-skipping options

6.    Multiple options – If free shipping isn’t included, give customers a choice between a flat rate or expedited delivery if speed is an issue

7.    Subscriptions – Frequent shipping to the same addresses can provide predictable costs and savings for both shipper and customer

8.    Shipping software – Integrate with different carriers to automate processes, compare rates, and increase efficiencies

9.    Bulk shipping – Multiple orders can be batched together for the same destination

10. Insurance – Evaluate the need based on the product's value and the risk of loss

If you have sufficient weekly volume, you can always outsource your shipping to a well-qualified 3PL as they are well-versed in optimizing shipping efficiencies and costs for their clients.
Managing Order Growth

Whether it's due to a lack of warehouse space, a shortage of labor, or customer demand for faster and less expensive (or often “free”) deliveries, many e-commerce companies are struggling to manage their own order fulfillment.
 
Retailers' and e-commerce sellers' decisions on whether or not to take on their own fulfillment can be a make-or-break strategy, as poor execution will affect every part of their business.
 
Outsourcing the fulfillment process is often not warranted for small startups due to low and irregular shipping volume, and inconsistent or insufficient cash flow. As the business grows, it reaches a tipping point where efficient order fulfillment and customer service become a strategic imperative.
 
Common challenges as business volumes increase include improperly filled orders, inventory management, time-consuming order processing, and inefficient packaging. If the business growth warrants an expansion of staff and space, it’s either time to hire a dedicated in-house logistics team and lease/build a warehouse or outsource the entire function to an experienced 3PL. Doing so will ensure leadership has the time and energy to make sound strategic decisions without being consumed by the minutiae of daily logistics.
ABOUT US
ShipRight is dedicated to providing the highest level of customer service to its clients. We listen to and partner with our clients, work hard to exceed their expectations through every interaction, and always stand behind our promises. Our experienced and committed team takes great pride in what they do and our goal is your success.

We offer a broad array of services including order fulfillment, contact center and final mile delivery. These can be utilized as stand-alone services or fully integrated to meet your needs. 

Benefit by leveraging our investment, infrastructure and experience so you can focus on the growth of your business. Contact us today and see how we can help you save time, money and stress.
Let's Talk
Contact Todd Flaherty, Partner to discuss your business needs.
Todd Flaherty | (207) 610-7748 | tflaherty@shipright.biz
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