Business owners, or those working in a managerial position, will know all too well of the importance of distribution. Sending off packages to various destinations can be a costly affair, and can be cumbersome to manage if done incorrectly. Thankfully, it doesn’t have to be, as there are numerous aspects that should be considered prior to shipping.
Shipping factors will always fluctuate, as business and industry trends vary on a day-to-day basis. Determine your finances first and foremost, before ultimately establishing what shipping areas need the most attention. There are courier services that can help your business ship packages, both quickly and affordably.
Since transparency in supply chain management is of the utmost importance, you need to ensure that key areas are properly examined. The process may be long-winded initially, but becomes easier as you become more familiar with them overtime.
Keep these eight business tips in mind on how to ship packages for a business:
1. Know Your Shipping Recipients
If you work in or run a small business, you probably have already established your primary demographic of consumers. However, it is always a good idea to refamiliarize yourself with your market, to see where costs can be cut. Some small businesses have a customer base in international areas, which may influence shipping costs greatly.
That is why it is vital to know where your existing customers are, and where new ones may potentially come from. Not only does this assist in your overall strategies for growth in your market, but will inevitably positively affect your shipping costs as well. The more you know, the better!
2. Establish A Pricing Strategy
Pricing is so important when you ship packages for a business. This aspect is an area that many business owners may modify accordingly at a later time. For maximum efficiency, you’ll want to ensure that it is established somewhere in the beginning of your operations. Once this is done, it allows you to find efficiency, in terms of your personalized shipping costs.
For example, if you set your shipping costs at a fairly high rate, conversion rates may be negatively impacted. Setting your shipping costs too low might impact your margins per order for the worse, even if your conversion rates improve. Stay in the know regarding industry trends related to your business, and you’ll find an adequate pricing strategy for shipping.
3. Keep Communication Clear
The supply chain, in today’s local and global market for commerce, has never been more transparent. Not only does this keep things clear on your end, but greatly benefits your customers as well. You don’t want to risk losing consumers, just because they couldn’t find clarity in your shipping policies.
Transparency, above all else, is key, in maintaining good business relationships with your customer base. Make sure that you keep all shipping information regarding a product or item easy to find. That way, customers will know about any and all additional shipping costs upfront, if they are unsatisfied before ordering.
4. Volume of Shipping
All small businesses will vary, in terms of shipping. Whether or not your company distributes a large amount of items each week, or very few, it is critical to know about the extent of your shipping. This becomes even more important, once you anticipate your shipping expenditures to increase in the future. Determine your shipping volume, so you can find a suitable plan!
5. Shipping Weight
Of course, no two products will weigh the same. If items belonging to your business differ in terms of mass, this will end up affecting your shipping costs. While some items can be relatively inexpensive to distribute as a result of their low weight, heavier ones may drive your shipping costs up. Like the area of volume before it, ensure you know your inventory’s mass accordingly.
6. Shipping Distance
Figuring out the distance of your product’s intended destination may also be a factor, in terms of shipping costs. Areas that are further away from your base of operations will be more expensive, than areas that are more local. Since many carriers and courier services are based on relevant zones, finding one akin to your ship-from location can be tricky.
When you ship packages for a business, it’s important to determine a few factors prior to shipping. This can range from the actual product shipping capacity, to determining what other taxes or duties that are applicable. Many courier services offer premium servicing for these circumstances, so contact one should you require assistance.
7. Business Packaging
Even though many courier services and carriers will provide you with packaging, you may want to consider this area further. For example, if the products you intend to ship are delicate, keep in mind added costs that you will need for extra insulation, such as cushioning. This may affect your finances, but may be worth it, for effective shipping overall.
8. Charging Customers
Finally, this area is ultimately dependant on your business needs. Some companies offer free shipping, while others give a flat rate. Even though you should aim to mitigate costs, you don’t want to risk losing your valuable customers, so decide on what is best for you!