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Small Business- Shipping

Posted on 12/13/19 at 10:08 am
Posted by sodcutterjones
Member since May 2018
1243 posts
Posted on 12/13/19 at 10:08 am
I need help on how to lower cost on shipping. Last week I shipped one item weighing 1 lb and it cost 11 dollars. I bought their foam envelope and took on a surcharge. That is through UPS. Shipping will be a regular occurrence so any tips would be appreciative.

Is it normal to pass on an 11 dollar shipping cost to the consumer? This is really going to eat into my profit margin.
Posted by WhiskeyThrottle
Weatherford Tx
Member since Nov 2017
5397 posts
Posted on 12/13/19 at 10:23 am to
Have a family member that sales gaming cockpit apparatuses. He has to build a lot of his shipping into his price and still charge a shipping rate. Costs something like $200 a unit to ship. But people get pissed off when they go to check out and see a $200 extra expense they aren’t expecting. He builds about 75% of the shipping into the items price then tacks the rest on at the time of purchase.
I think you get a mild discount if you set up an account with ups or whoever but can’t swear by that.
Posted by baldona
Florida
Member since Feb 2016
20620 posts
Posted on 12/13/19 at 11:21 am to
As long as you aren't selling $5 items with $11 shipping, customers expect the expense. Customers care about the total cost, if you can't deliver the total cost for a competitive rate then you don't have a business unfortunately. Total cost is price for the item plus delivery.

I price shop all the time. Ebay is very common place to do this. If someone else has an item with a lower price but the total cost including shipping is more, I'll buy the item that has a lower total cost 100% of the time. I mean its common sense.

If the total cost is most then I can buy it for locally, I determine how much my time is worth and how fast I need it.
Posted by nobigdeal69
baton rouge
Member since Nov 2009
2183 posts
Posted on 12/13/19 at 3:02 pm to
Priority mail at 1 pound should get you around $7-8, and it's relatively quick. 2 days in a lot of places that UPS would take 4. UPS would be more reliable though. If something happens with you USPS package, it's gone forever.

If you're less than a pound, you can do first class mail, which will cut the price to around $3-5.

ETA: If you're selling on eBay or Amazon, I'd just use the shipping they offer. It's normally pretty cheap.
This post was edited on 12/13/19 at 3:05 pm
Posted by Doctor Strangelove
Member since Feb 2018
2971 posts
Posted on 12/17/19 at 7:32 am to
Get an account at UPS, Fed Ex and DHL. Talk to their sales rep and they can set your rate at a lower price based on volume. They will provide your boxes and packing material at no cost. USPS is cheapest but unreliable. If small volume shipped, then reduce costs by using your own boxes, envelopes and using drop off service at UPS Stores or Fed Ex.
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