A new entrepreneur seldom thinks of shipping as an important part of his initial research aspect. If you are looking at a new venture idea that involves a significant amount of shipping, you need to give shipping a second, third and a lot of subsequent thought before zeroing in on a shipping plan.
What are the components of a small business shipping plans?
A Freight carrier account
Think FedEx/UPS. You cannot run to the Post Office or freight carrier office every time you have a shipment to be sent across. So, sign up for an account and strike a deal with a reputed carrier service. Shipping vendors generally have representatives who can come to visit in person and meet with business owners to review their specific requirements needs and to explain suitable options. So, ask for a representative to come and meet you. Before he turns up, research from various small business forums on what deal prices other similar business people sign up for. This gives you a good leveraging platform.
Do not undermine yourself
Yes, you are a new entrepreneur, you are a small business owner. But that doesn’t translate to a handicap when it comes to negotiating rates with shipping partners. While you engage in a conversation with the representative, don’t limit conversation to expense alone. Ask for various services, time of pick up, amount of paper work involved with every shipment, tracking measures and such. Decide on a vendor based on his answers to these questions. Typically, it makes sense to choose a vendor who would come to collect the shipments rather than one who would expect you to bring the shipments to his place. FedEx and UPS offer such personalized services. Experts suggest businesses sign up for one express service and one normal service product. This gives options when in need. Experts also offer a lot of practical tips. For example, heavier items sent via USPS work out cheaper. But USPS does not offer the convenience of a pickup from your doorstep.
Price Points
Shipping costs are built into your product price if you offer free shipping. So, a small business would like to minimize shipping costs as much as possible. The plus side is that if you run an online store, there is no rent. Shipping costs are only a fraction of the rent one incurs in a brick and mortar store. So, an online retailer can afford to take the extra charges. Experts observe that retailers who look to make money with their shipping charges tend to lose their customer base, in the long term.
If you offer multiple items on your site, try to strike a balance- offer free shipping on high margin, light items. The mantra here that you need to keep in mind is that customers love free shipping.
Shipping as Promotion
To promote your small business, it makes sense to offer free shipping for a limited period to market your site and gain visibility. Periodically, several small businesses offer free shipping on certain fast moving items. You can also incentivize the customer with a free shipping offer.
Shipping refunds
Most importantly, don’t lose the money you are eligible to receive, when a shipment is delivered later than the promised time. You can automate this process with www.lateshipment.com and never miss a refund. This optimizes your overall shipping costs.
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