As a business owner or operator, you are always looking for ways to lower costs without sacrificing quality and service to your customers. Shipping and fulfillment are areas of a business where the right information can help you save money and streamline services. In this article we will be providing you with the answer to one of the most common questions we receive, what do I need to know about shipping costs?
1. Shipping Point
Shipping point is the location where ownership of your product is transferred from the seller to the buyer. This is generally where your product will be loaded onto a truck, plane, or ship headed towards its final delivery destination. Your shipping point is important to consider when working with 3pl fulfillment partners because it can affect your shipping costs. Shipping point is just one of many important factors to consider when working with a 3pl provider, but it’s an important one to keep in mind when trying to calculate your total business costs. Shipping point can also be referred to as place of receipt, place of shipment, or transfer of ownership point.
2. Origin of Shipping
Often fulfillment companies will dazzle clients with their multiple warehouse locations and promise cheaper costs due to the warehouses being closer to an end destination that the shipping cost will be cheaper. However, that is not always true! Be aware of when someone states your shipping costs will be cheaper if the warehouse location is close to the end delivery point. Place of shipment should also be taken into consideration to get an accurate estimate of shipping costs. To find affordable solutions, look to work with 3pl fulfillment companies that offer flat rate shipping options as this could save you money and also help with future shipping cost projections.
3. Package Weight
The weight of a package is a key factor in determining shipping costs. When determining the weight of your package, it is important to consider the amount of additional packaging materials it will take to properly secure your package in a box or bubble mailer. To ensure the lowest shipping cost possible, make sure your packages contain the exact amount of packaging material to protect your product and to ensure lower shipping costs.
4. Packaging Dimensions
When shipping products, it is important to consider the package dimensions and ensure that the product is properly sized for the package. If the product is too small for the package, it can result in excess packaging material, which can increase shipping costs. By right sizing the packaging for your product, you can help reduce packaging and shipping costs.
What is Rightsizing?
Rightsizing is the practice of ensuring your product packaging does not include excess packaging materials such as cardboard, packaging peanuts and packaging paper. It can lower your shipping cost and is also an eco-friendly packaging solution.
5. Expected Delivery Times
In ecommerce and retail fulfillment, delivery times can be a major source of frustration. By partnering with a trusted 3PL fulfillment provider that incorporates ecommerce platform integrations, it will greatly enhance your companies shipping times due to the real time communication between the two applications. With 54% of online consumers saying that delivery times define who they shop with, using a 3pl that can fulfill your orders efficiently and adjust quickly to order changes will positively impact your bottom line.
The above are the key factors when trying to determine your shipping costs and where you can save money in the order fulfillment process. If you need 3pl fulfillment services or help determining your shipping costs, give us a call today! Our dedicated support staff is here to provide you with the level of support you deserve.
Additional Helpful Resources
To help you better manage shipping costs and understand their various components, check out these valuable resources from Badger Fulfillment Group:
- Understanding DIM Weight and Its Impact on Shipping Costs-Learn how dimensional weight (DIM) plays a crucial role in calculating shipping costs and how to optimize for it.
- The Smart Ecommerce Owner’s Guide to Reducing Shipping Costs in 2023-Dive into hidden costs and strategies for better managing your shipping expenses.
- Order Fulfillment Services-Discover how Badger Fulfillment Group’s services can help streamline your fulfillment processes and reduce costs.
- Shipping and Logistics: Behind the Scenes of a Small E-Commerce Brand-Forbes explores the intricate shipping and logistics challenges that small e-commerce businesses face, highlighting the strategies they use to efficiently manage costs, streamline fulfillment, and compete with larger companies.
These resources offer deeper insights into shipping costs and how to control them effectively.
