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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
5319 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 sodcutterjones
Member since May 2018
1243 posts
Posted on 12/13/19 at 10:33 am to
Yeah I'll find out if having an account helps any. I understand shipping aint cheap but I tend to think customers will turn their nose up if the price is too high.
Posted by baldona
Florida
Member since Feb 2016
20461 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 sodcutterjones
Member since May 2018
1243 posts
Posted on 12/13/19 at 2:01 pm to
Here's my specifics: 20 dollar item and to ship it was 10.53.

would you be ok with that? I wouldn't.

That's sticker shock when you get to the checkout portion. I mean, i guess i could provide my own envelope and cut 2 dollars, but still. But I'm here to gather opinions.
Posted by nobigdeal69
baton rouge
Member since Nov 2009
2174 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 eng08
Member since Jan 2013
5997 posts
Posted on 12/13/19 at 7:04 pm to
USPS has those flat rate boxes.

I shipped a 25lb chunk of lead to Florida for like $8
Posted by LSUlove
Louisiana
Member since Oct 2003
518 posts
Posted on 12/13/19 at 7:35 pm to
How much are you shipping a week? Is it just one item here and there, or numerous items a week?
Posted by baldona
Florida
Member since Feb 2016
20461 posts
Posted on 12/14/19 at 6:57 am to
quote:

Here's my specifics: 20 dollar item and to ship it was 10.53.


Yes that’s high, as said by others there are cheaper methods. How much do others charge for the item plus shipping?
Posted by sodcutterjones
Member since May 2018
1243 posts
Posted on 12/14/19 at 7:53 am to
quote:

How much are you shipping a week? Is it just one item here and there, or numerous items a week?


Right now a a few times; but this thing could get rolling and I’d be heading to the mail center quite a bit. Trying to prep for the future.



Posted by Doctor Strangelove
Member since Feb 2018
2963 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.
Posted by nolanola
Member since Nov 2010
7581 posts
Posted on 12/18/19 at 7:14 am to
quote:

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.


Lots of mixed info here.

DHL doesn’t do ground in the US. They do have some sort of cross agreement with USPS but I know no one using it. DHL is great for international however.

USPS does provide envelopes and boxes for free. UPS and FedEx only do this for Express.

FedEx has started a service called OneRate. It sounds like you need to look into this ASAP. It is cheap Express and they provide envelopes. Be sure to check the volume of your shipment tho.

It will be nearly impossible to get a UPS, FedEx or USPS rep with no volume. Especially UPS. With that being said reach out to Unishippers. They are a 3rd party UPS partner and will be aggressive to speak to someone regardless of volume.
Posted by book32
Member since Dec 2019
7 posts
Posted on 12/19/19 at 8:31 am to
Yeah, that`s really nice tip!
Posted by WhiskeyThrottle
Weatherford Tx
Member since Nov 2017
5319 posts
Posted on 12/20/19 at 7:22 am to
The shipping to price ratio is a deal killer for me in most cases. Not sure what you're selling but psychologically, it's easier for a shopper to stomach a $25 item for $5.53 in shipping rather than $20/$10.53. Bump your item by $5 and reduce shipping by $5. Just my opinion.

You can cut a face to face deal if you have actual live customers at times.
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