Order fulfillment is a crucial part of any business that deals with physical products. Given the almost unimaginable range of products available to the consumer today, many items come with their own specific challenges due to a host of factors such as fragility, volume, loose parts, and weight. There are ways around these challenges, however, and today we’ll take a look at five reasons to outsource fulfillment.
Creating and maintaining a complex logistics system to overcome these challenges is an intimidating prospect due to the massive amount of time and resources that may be required. However, the good news is that you don’t have to perform this heavy lift alone.
Now, let’s dive in and discuss the top 5 reasons to outsource fulfillment.
Focus on core business functions
One of the primary reasons to outsource shipping fulfillment is to allow businesses to focus on their core competencies. Shipping and logistics can be time-consuming and complex, requiring a significant investment in resources and infrastructure. Due to this, outsourcing shipping fulfillment has become a popular trend among businesses in recent years, with more and more companies opting to outsource their logistics operations. These businesses have found that when outsourcing fulfillment, they can free up valuable time and direct their team to focus on other essential functions, such as sales, marketing, product development, and customer service, which can now be intentionally aimed at increasing their bottom line.
Reduce costs
Fulfillment can be an expensive process, especially if you’re handling it in-house. Outsourcing shipping fulfillment can help businesses reduce costs in several ways. First, outsourcing eliminates the need for businesses to invest in their own shipping infrastructure, including warehouses, distribution centers, and transportation fleets. This can result in significant cost savings, particularly for smaller businesses that may not have the resources to invest in these areas. A good fulfillment partner will have the technology and expertise to help you manage your inventory levels and ensure you always have the right amount of stock on hand. Additionally, outsourcing can provide economies of scale, allowing businesses to take advantage of the expertise and resources of larger logistics providers and achieve lower shipping rates.
Increase efficiency and scalability
Outsourcing shipping fulfillment can also increase efficiency and scalability. Logistics providers have the expertise and resources to optimize shipping and warehousing operations, reducing transit times, minimizing errors, and improving overall efficiency. Fulfillment providers have the technology and expertise to optimize the process, from receiving and storing inventory to picking, packing, and shipping orders. As your orders ramp up, outsourced fulfillment can scale with you quickly and easily. Seasoned fulfillment providers can easily accommodate changes in order volume, seasonal fluctuations, and new product launches.
Improve customer experience
Outsourcing shipping fulfillment can also improve the customer experience. Partnering with a reliable logistics provider who understands the critical nature of the shipping experience can help businesses offer faster and more reliable shipping, tracking, and delivery options to their customers. This can help improve customer satisfaction and loyalty, as well as increase sales and revenue.
Access to expertise and technology
Finally, outsourcing shipping fulfillment provides businesses with access to the expertise and technology of logistics providers. Shipping and logistics can be complex and constantly evolving, requiring specialized knowledge and technology to optimize operations. By partnering with a logistics provider, businesses can tap into the expertise and resources of professionals who have experience in managing logistics operations and access to the latest technology and tools, such as artificial intelligence, automation, and robotics, in order to improve efficiency and accuracy.
To learn more about what to look for in a 3PL partner, see our detailed guide HERE.
In conclusion, outsourcing shipping fulfillment can provide significant benefits to businesses, including allowing them to focus on core business functions, reducing costs, increasing efficiency and scalability, improving the customer experience, and accessing expertise and technology. Those looking to optimize their shipping and logistics operations should consider the benefits of outsourcing and explore their options with reliable logistics providers.
Introduction
The United States Postal Service (USPS) is a popular choice for shipping, both domestically and internationally. However, if you’re dealing with hazardous materials (HAZMAT), it’s crucial to stay informed about the USPS’s upcoming changes regarding the handling, documentation, and labeling of these materials. By understanding and complying with these changes, you can avoid potential accidents and legal complications.
Understanding HAZMAT and Its Common Examples
Before diving into the USPS changes, let’s clarify what qualifies as a hazardous material. While you might picture dramatic scenarios like cartoon barrels of acid or radioactive substances, the reality is that many everyday items are considered potentially dangerous. Batteries, battery-containing products, aerosols, certain household chemicals, and even some cosmetics fall under this category. HAZMAT can also include chemicals, explosives, and radioactive materials, which, if mishandled, pose serious risks such as leakage, fires, explosions, and contamination of the environment.
Enhanced Regulations for Fire and Explosion Risks
Certain hazardous materials, particularly flammable liquids, gases, and solids, require even stricter rules. These materials must be shipped via ground services due to safety concerns, making commercial air travel unsuitable. The transportation of hazardous materials adheres to rigorous regulations to ensure safe handling, packaging, and transport, minimizing the risk of fire or explosion.
Ensuring Safe Transport
Companies and individuals involved in shipping HAZMAT must take necessary precautions and follow strict guidelines to ensure the safe transport of these materials. Mistaken or improper shipping of hazardous materials can have severe safety consequences. It’s essential to prioritize safety and partner with fulfillment centers experienced in HAZMAT shipping. These centers can help you understand shipment classifications, packaging requirements, and individual shipment regulations, ensuring compliance and peace of mind.
Identifying HAZMAT Materials
With the upcoming USPS changes, it becomes crucial to identify the types of hazardous materials in your packages. Accurate identification allows your technology provider to generate carrier-compliant shipping labels and manifests. The USPS supports and requires 22 different material classifications for manifests, depending on the shipment’s contents. These classifications include everyday objects like first aid kits, printing inks, and thermometers. A detailed list of USPS Hazmat and Changes can be found on the official USPS website HERE.
Staying Informed and USPS Changes
To stay up-to-date with the USPS’s revised guidelines for Hazardous, Restricted, and Perishable Mail, refer to Publication 52. It contains valuable information specific to the USPS, including classification and identification details for HAZMAT. Additionally, the Department of Transportation (DOT) provides high-level information on HAZMAT regulations and compliant labels. Familiarize yourself with these resources to ensure compliance with shipping requirements.
What Changes to Expect
The USPS is revising Publication 52 to include updated guidelines for hazardous materials. These requirements will mandate carefully separating hazardous materials requiring hazard-warning marks or labels from other mail. Mailers will also need to place these materials in distinguishable containers. Furthermore, the USPS will enforce the use of ground transportation and specific labels for used, broken, or flawed electronic gadgets containing lithium batteries, with some exceptions.
Enhancing Safety and Preventing Incidents
These changes aim to enhance safety for employees and recipients of packages containing hazardous materials. The USPS has shared examples of packages spontaneously combusting and improperly identified packages containing spilled chemicals, highlighting the need for stricter regulations. By implementing these changes, the USPS seeks to reduce incidents involving hazardous materials during the shipping process.
Fulfillment Centers for Hassle-Free Shipping
Partnering with a carrier-compliant 3PL fulfillment center can save you time, resources, and potential legal complications as the USPS implements these changes. This applies not only to regular HAZMAT shippers but also to anyone using USPS for Shipping HAZMAT, regardless of frequency, which requires attention to detail. Just as you check your stove before leaving home or your tire pressure before a road trip, ensuring your HAZMAT shipments comply with regulations adds peace of mind and eliminates potential stress from the process.
Partnering with a fulfillment center experienced in shipping hazardous materials can significantly benefit your e-commerce business. These centers understand the complexities involved and can efficiently handle HAZMAT-classified items. By leveraging their expertise, you can redirect your time and resources back into your core business operations.
If you’re looking for a fulfillment partner specializing in HAZMAT, contact our Fulfillment Consultants. They can connect you with a vetted fulfillment center that meets your specific needs and requirements.
Conclusion
The USPS is implementing changes to improve the safety and accuracy of HAZMAT shipments. Staying informed about these upcoming changes is essential for individuals and businesses involved in shipping hazardous materials. By understanding the regulations, identifying HAZMAT materials accurately, and partnering with carrier-compliant fulfillment centers, you can navigate the shifting landscape of HAZMAT shipping with confidence and ensure the safety of everyone involved in the process.
In a recent QuickTake Panel with eHub partner LOGIWA, co-hosted by eHub, four experienced and sustainability-driven guest panelists discuss the topic of “How 3PLs Win Through Sustainable Fulfillment Operations” through 3 specific topics:
What it means to become a sustainable fulfillment operator
How sustainability can drive growth for 3PLs
Steps to take to create sustainable operations
Sustainability – What Does it Mean for Companies?
Sustainability in business aims to reduce the environmental impact companies cause through their operations. For 3PLs, companies, brands, and consumers and customers alike, sustainability is an inevitable and driving factor in the future decisions for what businesses will be supported, and how businesses will conduct their operations, including through 3PLs and fulfillment. Logiwa’s quicktake panel goes over how sustainability has been achieved by their companies, how it can be achieved by others, and the ultimate impact and advantage sustainability can provide to 3PLs and businesses wanting to take that journey. Here are some of the highlights from the panel’s answers to the topics:
TOPIC 1: WHAT IT MEANS TO BECOME A SUSTAINABLE FULFILLMENT OPERATOR
Jamie: For a 3PL business owner, some of Logiwa’s customer’s sustainability is operating in a manner that’s going to minimize the negative impact on environment, society, economy, but will also maximize the positive impacts.
Reid: [Sustainability] applies to a lot of different facets for the customer itself. How do you go above and beyond for the customer and show them that you’re considering things that they might not have even thought of themselves that apply into the sustainability bucket.
George: Sustainability is a journey. It’s a journey for your business,…where you as a business owner or a member of a team decide to pick up the banner and go on that journey…and include as a stakeholder and a decision-making process; are [you] factoring in the environmental impact of these decisions? Obviously we all want to build successful businesses…but in addition to that are we taking into account what effect this has on the planet, on the environment, on the communities that we operate and live in.
Sustainability takes into account not only doing good business, but how we are rooting for the planet, for the community, for the people that we care about and who we’re gonna leave the world to.
TOPIC 2: HOW SUSTAINABILITY CAN DRIVE GROWTH FOR 3PLs
Wayne: From a pure business perspective, why would a 3pl or a brand managing their own fulfillment for that matter consider making this investment in sustainability?
Reid: I’d say the biggest thing is this no longer a niche play, or it should no longer be a niche play If you make money, great, but if you’re not putting it to good use or to good focus then I’d say nobody effectively wins.
George: The bottom line is customers are demanding it. Customers are demanding. Consumers are demanding it. So, as much as it is the right thing to do it is also a very pragmatic business decision. The shift towards sustainability is inevitable. Are you going to be forced to do it down the road, or are you going to do it now and really put your stamp in that space as one of the early thought leaders, early companies that adapted these principles in sustainability as a north star. From a branding perspective, it makes so much sense as well…[because] it’s very rare that I come across a 3PL that is able to confidently assert that sustainability is one of their top values. So from the fact that it’s a small saturation of 3pls that are practicing sustainability as a high priority right now, is an immediate competitive advantage
Jamie: sustainability has…transitioned…[in that] it’s going to become a competitive neutralizer, if you’re not doing it you’re behind the curve. There’s a lot of ways that we can impact that. Particularly things like smart routing of orders, or if we’re recommending the proper package types, or trying to run an order to a particular location where there’s gonna be the least amount of transport.
George: The branding of sustainability catches a niche audience. I’ve had customers over the last year and a half that…[say] “just because you do what you do and you do it in a way that is sustainable you have my business” Just by the virtue of your value, you’re attracting [an] audience. [Another] thing that’s important is for you to share your data with your customers. Having a partner that knows how and represents the data back to them is super important in terms of customer loyalty…[it creates] a really virtuous chain reaction of data and action
Adam: There’s this thought that sustainable fulfillment is more expensive, and I think there’s a lot of misconceptions…because reducing waste can absolutely be a very economical and cost effective thing to be doing. One example we had was a 3PL [that was] working through the prospecting stages of bringing on a merchant…[Their] primary focus…was cost savings. One of the things that we discovered [was] we could help right-size package some of their high-volume products, eliminating waste, and the projected savings on that was 40,000 dollars
Reid: [With less packaging] You’re can also save your operations team from creating the box, closing the box and going from there which eventually plays into an efficiency aspect because [when you’re] looking at the bottom line, it not only makes sense for the customer, but it’s also saving the operations team allowing them to process more orders. So really it’s a win win.
George: Utilizing sustainable materials and sustainable supplies [is] super important. The only thing more sustainable than that is using less of it…[at Manifest] we work with each client to find the optimal packaging. Bottom line is…customer loyalty. We all know the upfront customer acquisitions costs in this business aren’t easy to swallow. So being able to retain those clients and have their loyalty and have them super happy with the service you provide and very proud to be working with you and them seeing you as your true supply chain partner just creates a longer, more prosperous relationship in the long run.
TOPIC 3: STEPS TO TAKE TO CREATE SUSTAINABLE OPERATIONS
Wayne: Is [creating sustainability] incremental, or is it a more wholesale way to…move your operations into a…sustainable mode of operating?
George: Part of the problem [is] everybody wants to be sustainable and build sustainable businesses. There are very small things that you can start off with and start to make a difference and compound into realistic and formidable progress, and don’t be afraid to lean on what others are doing. Copy us, copy other ideas, and then that’s the easiest path. You don’t need to put pressure on yourself and your team to reinvent the wheel or invent the wheel for sustainability for your fulfillment operations, there are small things that are happening every day all around you that you can start to implement For example, one of the first things that we decided to do was offset the carbon footprint on all of our shipments. Something as simple as walking around your warehouse and deciding [if you’re using] the right LED lights that save power,…[implementing] movement track lighting. And then recycling…the amount of trash that gets picked up, the amount of cardboard…that nobody wants to pick up…so figuring out ways what to do with all that excess waste and trash. All those are steps that compound into really meaningful differences.
Jamie: One of the key factors in the momentum behind sustainability is that there’s so many different avenues to go start. The more of these opportunities to build your brand and business that you can take advantage of, the more these levers that you can pull, the more advantageous you’re going to be. LED bulbs, motion sensors, or usage of natural light. Sometimes it’s just as simple as painting your roof white, and minimizing your cooling costs.
WRAP-UP
Adam: There’s a lot of partners, there’s a lot of people out there that can help you, and so I would just say work with those around you, join whatever community partnership you want to in order to take the first steps. Leverage the community we have in order to make progress on those initiatives.
Reid: Let’s continue to…share [these things]. Let’s continue to make them even better because if we go out there and just hold onto them, that’s not going to be good for anyone. That’s not even a sustainable concept. The sustainability…is truly in the networking side and also in the delivery side.
George: The market is driving us. The shift towards sustainability is inevitable, so as a business owner you need to have it on your map. This is a journey, and small steps are ok. They will compound into more and more progress and…implementation. Adapting that into your roadmap…thinking and…decision making for you and your team is the best way to get started and you’ll be surprised how much progress you can make really quickly just by making decisions and thinking about your business in environmentally friendly and sustainable ways.
Learn what Priority Mail is, what it does best, and who can save the most by using it for shipping.
Finding the lowest prices, fastest delivery times and best service for your customer shipments can be complicated—especially when carriers offer multiple service options.
Shipping services can be challenging to sort through to find a good fit, and USPS Priority Mail is no different. It includes multiple distinct shipping methods with optimal uses and cost structures.
But if used strategically, USPS Priority Mail offerings can provide you with a competitive edge. Here’s how.
What Is USPS Priority Mail?
Priority Mail is the USPS’s top-tier shipping service. It offers faster delivery (one to three business days), along with a host of other benefits, including:
Free Package Pickup or Pickup on Demand
Up to $50 of insurance coverage for free
Free package tracking
No additional fees for fuel, residential/rural deliveries, or deliveries on Saturday
Priority Mail can ship packages to international destinations and overseas US military post offices. Best of all, using Priority Mail doesn’t have to be time-consuming or costly; by using eHub’s API and native integrations, it’s possible to save time and reduce shipping costs.
The Priority Mail category breaks down into several distinct shipping methods, each with its own advantages, pricing structure, and specific requirements that have to be met to use:
Standard Priority Mail
Priority Mail Flat Rate
Priority Mail Cubic
Priority Mail Regional
Priority Mail Express
Standard Priority Mail
This primary option functions similarly to standard shipping but with the added perks of Priority. You bring your own box, and shipping costs are based on package weight and delivery distance. Despite the similarities, however, there are additional requirements to get the service upgrade:
No package larger than 108” in combined length and girth (the length of the longest side, plus the distance around its thickest part)
No package weighing more than 70 pounds
Finally, some large, lightweight packages shipped via standard Priority Mail may be subject to additional “dim” charges.
This standard method, though, is the most negligible advantageous way to use the program. It’s a better service, but it’s also a cost increase. One of the following shipping methods is usually a better fit.
What Is USPS Priority Mail Flat Rate?
Flat Rate is built around specially marked packaging of various types and sizes, each with a prest “flat-rate” cost. If it fits in the box, and the total weight is at most 70 pounds, it ships for the cost of the packaging, regardless of actual weight or distance.
PACKAGE REQUIREMENTS
Use the USPS-provided packaging
The box can be closed properly
70-pound maximum
PROS
Boxes are provided
Easy-to-calculate shipping costs
Heavier packages cost the same
CONS
Cannot use branded packaging
No savings for lighter packages
Limited packaging options
Special Considerations
The USPS provides a variety of flat-rate containers to choose from, allowing you to pick the packaging that fits the shipment and pay accordingly.
Package rates range from about $7 to $20, depending on the container used
“Prepaid Forever” Flat Rate containers function like forever stamps; purchase the box in advance and never worry about a flat rate price increase.
Optimum Use Cases
Shippers save the most using flat rates when shipping heavier items that fit the box, especially if the package needs to travel a great distance. For smaller items, especially those weighing less than 20 pounds, a flat rate may not be an optimal choice.
What Is USPS Priority Mail Cubic?
Cubic offers reduced prices for small packages that weigh less than 20 pounds. Costs are based on package volume and delivery distance, benefiting small-yet-hefty shipments.
50K annual shipment minimum (but see below for a way around this)
PROS
Heavier packages save up to 50%
Branded packaging can be used
CONS
Packaging not provided
Volume calculations required for price
Requires high shipping volume (or the right partner)
Special Considerations
Priority Mail is the USPS’s top-tier shipping service. It offers faster delivery (one to three business days), along with a host of other benefits, including:
Cubic works best for packages that are roughly shoebox-sized
Like Flat-Rate, save more shipping envelopes, bags, and sacks with Cubic Softpack
Partnering with a shipping aggregator allows low-volume shippers to qualify
Optimum Use Cases
Priority Mail Cubic is exceptionally cost-effective for small, heavy packages, especially when traveling a shorter distance.
Most SMBs aware of the program think they can’t reach the 50k shipment minimum. With eHub as a partner, however, you can use cubic since your shipments are combined with the batch we send their way, qualifying them for the program.
Learn how we’ve helped our customers streamline and optimize their shipping programs.
What Is USPS Priority Mail Regional?
According to USPS, Priority Mail Regional “combines the speed and convenience of Priority Mail shipping with zone pricing to reduce costs.” Like flat rate, it uses designated USPS boxes, but prices are based on distance, resulting in discounts for closer destinations.
PACKAGE REQUIREMENTS
Use provided packaging
Doesn’t exceed max weight (15 lbs. for Box A, 20 lbs. for Box B)
PROS
Closer deliveries = better rates
Packaging provided
CONS
Online-only program
Cannot use branded packaging
Less useful for longer distances
Fewer package size options
Special Considerations
Only four box sizes (two each of Box A and Box B)
Boxes must be ordered online
No soft pack option
using Priority Mail doesn’t have to be time-consuming or costly
Optimum Use Cases
Since prices are based solely on distance, regional works best for shipments with higher weights and similar dimensions to cubic, but don’t need to travel far—fewer benefits for smaller, lighter, or further-traveling packages.
What Is USPS Priority Mail Express?
Express is the USPS’s domestic overnight and second-day service, delivering to most US addresses 365 days a year.
PACKAGE REQUIREMENTS
Use official Priority Mail Express packaging
70-pound maximum)
Combined length and girth don’t exceed 108”
PROS
Packaging provided
Next-day and second-day delivery guaranteed
Delivers even on Sundays and federal holidays
Signature delivery confirmation included
CONS
Most expensive option
Cannot use branded packaging
Special Considerations
As an extension of standard Priority Mail, it comes with many of the same requirements and is subject to dim charges when applicable.
Optimum Use Case
Express is best for time-sensitive deliveries, where the importance of speed outweighs cost. That said, the lighter the shipment and shorter the distance, the less expensive it will be.
This April, the USPS is changing the costs of shipping larger packages. Specifically, they’re adding what is colloquially referred to in the industry as “dims” (short for “dimensional fees”). These dims are added fees based on package dimensions, and depending on what your brand ships each day, some, all, or none of your parcels may be affected.
What’s Happening
Starting Sunday, Apr 3, 2022, the USPS will charge additional fees for specific shipments. These “non-standard package fees” and “non-compliance fees” will affect—and be enforced on—parcels shipped via the following services:
First-Class Package Service
Retail Ground
Parcel Select Ground
Priority Mail
Priority Mail Express
So, if you use any of these services when shipping your products, look for the fees described below.
The “Non-Standard Package Fees”
These fees are based on the size of the package you are sending. Not the internal measurements of the product or items in the package but the amount of space the whole thing will take up in a mail truck. They base these fees on two measurements: the length and the cubic volume.
The “Length Fee” affects all packages over 22” in length:
For packages over 22” in length but not over 30”, the fee is $4
For packages over 30” in length, the fee is $15
The “Cube Fee” affects all packages over two cubic feet in volume, regardless of other measurements. This fee is $15 for any package that exceeds the limit.
Now, unless you’re familiar with the USPS Priority Mail Cubic service, you might not be used to calculating the cubic volume of a package you’re using, so here’s how you can get that figure:
Measure the Length (L), Height (H), and Width (W) of the package in inches
Multiply L x H x W to get your cubic volume in inches
Divide that figure by 1728 (which is 12 inches cubed, i.e., one cubic foot)
The final result is your package’s volume in cubic feet
If that final number is more significant than 2, the $15 cube fee applies.
One final note on non-standard package fees: they’re additive. In other words, if your package is over 22” long and more than two cubic feet in volume, the fee total will be $19. If it’s longer than 30” and more than two cu. Ft., the total is $30.
The “Dimension Non-Compliance Fee”
There’s one other fee to watch for. If you hand off your package without properly labeling it with accurate dimension measurements (and thus, paying for the appropriate fees as part of the postage), you’ll also get hit with a non-compliance fee. This $1.50 fee applies to any package that’s:
Longer than 22” in length or
Greater than one cubic foot in volume
But the fee only applies if you fail to provide dimensions or if the measurements you provide are inaccurate (such as listing the measurements of the product inside or the internal measurements of the box it’s in). It’s important to note that most shipping boxes list their internal dimensions, not their external ones, so be sure to double-check those figures.
Does This Affect Your Shipping Costs?
While few (if any) brands sell products that use identical shipping packages across the board, not all brands sell products that require boxes big enough to incur these fees. In other words, any package you ship more minuscule than the above dimensions won’t be affected, and you won’t see any price increase.
You might also have noticed that several other USPS offerings weren’t included in the list of those affected by the fees, such as:
Priority Mail Flat Rate
Priority Mail Cubic
Priority Mail Regional
That’s because the requirements to ship via these programs are already under the abovementioned limits: flat rate and regional both use boxes provided by the USPS, and cubic limits every measurement to 18” or less. So if you primarily use these services, you’re in the clear.
If you find that your packages fall into these additional fees, reach out to us to see if there’s a way to ship your products for less.
For the pleasure that you bring when you make that doorbell ring, no trip will be too far.
It’s the most wonderful time of the year for e-commerce retailers.
Whether your store sells perfume for Singles Day (China’s version of Black Friday), dreidels for Hanukkah, candles for Kwanzaa, or giant, blow-up Rudolph lawn ornaments for Christmas, holiday spending accounts for as much as 35% of retailers annual sales.
Here at eHub, the holidays are our championship playoff. We train year-round to help our e-commerce clients meet the increased demands of the season. Keep reading to see what our top-notch team of shipping elves says about how you can use your shipping program to capture more of the projected $910B consumers will spend online this holiday season.
1. Google is making a list. Check it twice. Taking advantage of Google’s new shipping annotations is one of the best ways to promote your online store this holiday season. Available for both free and paid listings, Google Shopping has added the following annotations to their existing “free” and “fast” tags:
Free delivery by Fri, Dec 24
Get it by Dec 24
Free X-day (this is for shipping promotions like Free 2-day or 3-day shipping)
Free returns by X
2. Holidays are plural—prep for all of them. Christmas is not the only holiday people are shopping for. Neither is Hanukkah or Kwanzaa. Black Friday, Small Business Saturday, Cyber Monday, and even Giving Tuesday are all opportunities for you to boost sales and capture new customers.
3. Take a bus, take a train, go and hop an airplane (Offer multiple shipping speeds). It’s no secret that supply chains and shipping channels are a mess right now. The combination of COVID-related labor shortages, exponential increases in online shopping, and totally random events like boats getting stuck in the Suez Canal have caused unprecedented slowdowns in global commerce. And consumers know it, so they are shopping earlier than usual for the holidays. If you are not already offering free shipping, give your customers multiple options and prices for getting their packages delivered.
4. Mele Kalikimaka (Shipping outside the lower 48)If you have many customers who don’t live on the US mainland, having a reliable shipping partner will ensure your success this holiday season. Ehub’s customizable API and status as a premier shipping aggregator means we have the knowledge, relationships, and experience your company needs to find the best, most affordable shipping options for you and your customers.
5. Make sure your customers are watching your countdown We aren’t discussing the New Year’s Eve ball drop countdown. Instead, you must ensure you promote and display ordering deadlines to guarantee delivery before whatever holiday your customers celebrate, especially since that drop-dead date will probably be earlier this year than usual.
6. Optimize for mobile You can expect most customers to have digital wish lists this year, so your site needs to be optimized for desktop and mobile users. Do user experience testing to ensure your checkout process is streamlined and simple. UX testing doesn’t have to be expensive or fancy—you can even have your employees try to buy something on your site in a staff meeting—but you can’t fix a glitchy, clunky, or slow checkout if you don’t know it’s there.
7. Wear out your (digital) mailing list No one likes an inbox full of spammy sale offers and promotions, but innovative retargeting campaigns that reach out to customers with abandoned carts or a purchase history and offer shipping discounts to quickly and easily boost sales.
8. Keep your workshop in order (Manage your inventory) Your store is likely impacted by the same shipping slowdowns affecting your customers. This means it’s more important than ever to stay on top of your inventory so you don’t inadvertently add backorder delays to the potential shipping delays.
9. Be good for goodness sake (Improve your customer service) Shipping and supply delays make it likely your customer service department will field more calls than a normal holiday season. Make sure your team has the training they need to stay on the nice list when customers call to cry and pout.
10. What are you doing on New Year’s Eve? (Simplify your post-holiday return process)Offering free returns is a great way to help consumers avoid purchase anxiety, but it’s not the only way to have a customer-friendly return process. One-click and no-hassle returns, extended return periods, and return purchase incentives can give your buyers confidence in you and your business.
If you have many customers who don’t live on the US mainland, having a reliable shipping partner will ensure your success this holiday season
Whether you need help negotiating with carriers, navigating international shipping laws, pricing out branded packaging, or finding the best rates, EHub can help. Give yourself the gift of a shipping expert this year and contact us for a quote.
If you own an e-commerce business, you’ve probably had someone tell you Priority Mail flat-rate shipping is the only way.
You’ve also probably had people tell you flat rate shipping is a scam.
Here’s the honest truth straight from our shipping experts: there is not a universally “right” way to ship a package. The right solution will vary by box size, package weight, and final destination.
What is flat-rate shipping?
Most people who talk about flat rate shipping are talking about Priority Mail Flat Rate, but that is only one type of USPS flat rate shipping USPS (the other two are Priority Mail Regional Rate and Priority Mail Cubic).
Each of these “flat” rate services uses the same network to provide the same services (tracking, insurance, guaranteed delivery window, etc.), but the pricing structure varies based on package weight, size, and destination.
Priority Mail Flat Rate—designed to simplify shipping large, heavy packages that need to travel long distances, Priority Mail Flat Rate charges a flat fee for any package under 70 pounds that can fit into a free flat rate box.
Priority Mail Regional Rate—similar to Priority Mail Flat Rate, Priority Mail Regional Rate is perfect for medium-sized packages between 15–20 pounds that don’t have to travel too far to reach their final destination.
Priority Mail Cubic Rate—best for small, heavy packages, Priority Mail Cubic charges a flat shipping rate, calculated by delivery zone, for packages that weigh less than 20 pounds and have dimensions smaller than 18” for the longest side (basically the size of a shoebox).
Priority Mail Flat Rate
Priority Mail Regional Rate
Priority Mail Cubic Rate
Package Size
Whatever can fits into a flat rate box
Medium-sized but still what fits into a flat rate box
Small packages no bigger than .5 cubic feet
Package Weight
Up to 70 pounds
15–20 pounds
Up to 20 pounds
Package Destination
Long distances
Short-range shipping
Rates change by zone
For the purposes of this article, we are going to lump Priority Mail Flat Rate and Priority Mail Regional Rate together and compare them against USPS Priority Mail Cubic.
USPS Priority Mail flat rate vs. USPS Priority Mail Cubic
One of the most significant advantages of USPS flat-rate shipping is that shippers don’t need to weigh their packages or buy their own boxes. For e-commerce companies that self-fulfill orders, those two benefits alone deliver much-needed time savings.
USPS Priority Mail Flat rate also has three boxes ranging from small to large, which gives merchants affordable options for multiple package sizes. The standard pricing model of Priority Mail flat rate allows e-commerce businesses to estimate their monthly or quarterly shipping costs accurately.
The problem is that even if your shipping estimates are accurate, if you aren’t careful, Priority Mail flat rate will cost you more than you need to pay. If you aren’t filling that flat rate box to the brim, or if you’re not shipping something all the way across the country, regional or cubic rates could save you anywhere from $1–$4 a package.
Depending on where you’re shipping, Priority Cubic can save you anywhere from $7–$123 per package
Which means those free boxes aren’t really free at all.
USPS Priority Cubic doesn’t provide free boxes, but it does deliver significantly better rates than Priority Mail flat rate for small, heavy packages.
Priority Cubic is a hidden secret in the shipping world, partially because this program is only available to companies that ship over 50,000 packages a year (small and mid-sized e-commerce companies can get around this requirement by using a shipping aggregator like eHub).
Depending on where you’re shipping, Priority Cubic can save you anywhere from $7–$123 per package over Priority Mail flat rate prices for small, heavy items. With savings like that, it doesn’t matter that Priority Cubic doesn’t provide free boxes. You can design and produce fantastic packaging branded with your company logo and still save money on shipping.
So, how do I know which program to use when?
That’s the magic question, isn’t it?
Most business owners don’t have the time or energy to figure out the most cost-effective shipping option for every single package they send—that’s why Priority Mail flat rate is so popular in the first place!
Shipping is EHub’s business, but it’s also our passion. Our shipping API fully integrates with over 200 e-commerce and shipping websites and gives you side-by-side rate comparisons, which makes finding the right shipping solution for every shipment fast and easy.
Even better? Our status as a significant shipping aggregator means you’ll have access to pre-negotiated discount rates lower than you could get working directly with carriers. If you’re curious about what Ehub can do for you, let’s talk.
Flat rate FAQs
Still have questions about Priority Mail flat rate and Priority Cubic? Check out our FAQ below.
How much are USPS Priority Mail flat-rate shipping boxes?
Zero. Zilch. Zip. Nada. Nothing. But remember, using free boxes doesn’t necessarily mean you are saving money.
How long does USPS Priority Mail flat rate shipping take?
While it has no money-back guarantee, all three USPS Priority shipping options promise delivery within 1–3 business days.
How much is flat-rate shipping?
Flat Rate Envelopes
$7.75
Legal Flat Rate Envelopes
$8.05
Padded Flat Rate Envelopes
$8.45
Small Flat Rate Box
$8.25
Medium Flat Rate Box
$14.25
Large Flat Rate Box
$19.20
APO/FPO/DPO Large Flat Rate Box
$17.70
Does USPS Priority Mail flat rate ship to Hawaii, Alaska, Puerto Rico, Canada, and Mexico?
Hawaii, Alaska, and Puerto Rico? Yes. (Side note: Guam, American Samoa, and the US Virgin Islands qualify too!)
Canada and Mexico? No.
Even though Canada and Mexico are closer to the mainland US than Alaska or Guam, Priority Mail flat rates aren’t based on proximity alone. Packages destined for Canada and Mexico must cross international borders, so they are subject to customs agreements and additional taxes/inspections.
The good news is that there is a Priority Mail International program that delivers packages to our North American neighbors in 6–10 business days.
Can I use my branded boxes for USPS Priority Mail flat rate?
Both USPS Priority Mail flat rate and Regional flat rate require the use of USPS Priority Mail boxes. If you want to use your own packaging or boxes marked with your company brand, you can still pay similar rates using USPS Priority Mail Cubic.
Nearly every parent has experienced abandoning a shopping cart filled to the brim with ice cream, frozen waffles, and fruit snacks as they drag a screaming, flailing toddler out of a grocery store at least once.
Luckily for the store stockers, the parent, and the toddler, that doesn’t happen often.
But if your online store were an actual, physical place, you’d probably have more abandoned carts littering your aisles than products on your shelves.
What is shopping cart abandonment?
Shopping cart abandonment, when online shoppers start to checkout but quit before clicking “complete order,” is a natural and expected part of e-commerce. The virtual version of telling a salesperson, “I’m just looking, thanks,” consumers hit “add to cart” because they want to:
Keep an item they are interested in easily accessible
Compare items and prices
Estimate the cost of shipping and taxes
Experience the rush of retail therapy without breaking the bank
Test a coupon code
Even though it’s just part of doing business, shopping cart abandonment is an $18-billion-dollar problem for retailers annually.
The average documented shopping cart abandonment rate across all industries is a whopping 69.57%. For mobile users, rates jump up to 85.65%.
That’s a lot of money left on the virtual table. Essential Hub wants to help you get it back.
Top 5 reasons for online shopping cart abandonment
The top 5 reasons consumers give for checkout abandonment are:
Extra costs (shipping, taxes, fees) are unexpected or too high (49%)
The site will not allow checkout without creating an account (24%)
Shipping and delivery timelines were too long (19%)
The checkout process was too long or confusing (18%)
The checkout portal did not appear to be secure (17%)
It’s a tough pill to swallow, but the truth is that Amazon’s Prime program has dramatically impacted consumers’ online shopping and shipping experience.
According to the statistics above, a whopping 68% of online shopping carts are explicitly abandoned because businesses don’t meet consumer shipping expectations. Even more strikingly, 28% of shoppers will abandon their carts if shipping costs show up as an unexpected “gotcha” during the checkout process.
When you combine the expectation of free and fast shipping with increased consumer privacy rights, those top reasons for shopping cart abandonment make a lot of sense.
EHub’s shopping cart abandonment solutions
You’ll never be able to eliminate shopping cart abandonment completely, but there are things you can do to reduce it significantly:
Offer free shipping.
If you don’t have free shipping, be upfront about all extra costs, like shipping, taxes, and fees, from the first click.
Simplify and secure your checkout process to improve page load times and reduce confusion.
Free shipping According to AlixPartners, 72% of US consumers said that including free shipping “greatly impacts” their online purchasing decisions. There are multiple use cases from businesses that have seen their orders increase by as much as 90% after implementing free shipping.
You must be thoughtful about adding free shipping to your customer service arsenal if you want to stay in the black. Setting up simple reports to track product pricing, profit, and shipping expenses can give you the data to adjust your market pricing strategy effectively.
At EHub, we help you crunch the numbers to determine which of our streamlined shipping solutions will meet your needs. Because we aggregate shipping costs across all our customers, EHub can offer cheaper solutions than you’d get working directly with the shipping company.
Basically, we make offering free shipping more accessible, cheaper, and faster than you thought possible.
Be upfront about shipping costs If free shipping isn’t feasible, shipping costs must be clearly visible throughout the entire shopping process. Customers will abandon carts with lightning speed if they are hit with an unexpected shipping charge, even if it’s only $15.
EHub’s proprietary API can seamlessly integrate with your checkout processes to make sure your customers know exactly what kinds of shipping costs to expect (which, as we mentioned, are among the industry’s lowest if you use EHub).
Additionally, EHub can deliver faster, provide tracking, and give you detailed reporting and analytics capabilities that will take shipping from your biggest headache to a walk in the park.
It’s a tough pill to swallow, but the truth is that Amazon’s Prime program has dramatically impacted consumers’ online shopping and shipping experience
Simplify and secure your checkout processes Checkout optimizations can improve your conversion rates by 35.26%, which translates to significant profit growth for a small business. Offering guest checkout, optimizing images for faster page loads, adding a progress tracker, and using HTTPS connections are all steps we can take to help you streamline your checkout process and decrease your shopping cart abandonment rates.
Get those carts to the registers
EHub is here to help you optimize your checkout processes and offer shipping solutions to keep your customers digitally pushing their carts to the “complete purchase” button. Contact us today to see what we can do for you.
How eHub’s API can turn your clunky shoe of a shipping process into a sleek glass slipper that won’t disappear at midnight
What is a shipping API?
An API (application programming interface) is a software program that enables communication between separate apps. Any time you use Facebook Messenger, search for a hotel on Travelocity, or use PayPal to purchase something from a website, you’re using an API.
Shipping APIs are magic wands that let e-commerce businesses automate and uncomplicate their shipping processes by allowing their website or shopping platform to interface directly with shipping carriers’ systems. Properly installed, shipping APIs can:
Validate customer addresses
Generate shipping labels for multiple carriers
Shop for the best carrier rates/support features for each package
Track shipments with real-time updates
If you’re looking at those bullet points and thinking, “I spend so much time on those things,” then eHub is ready to be your fairy godmother.
As a premier shipping aggregator, we have a proven track record as domestic and international e-commerce shipping experts committed to providing our customers with transparent, easy-to-understand shipping management services.
Keep reading to discover how our API is the magic bean you need to grow your business.
Alakazam vs. Presto Chango: the differences between a shipping API and a shipping software platform
Businesses that haven’t fully automated their shipping processes often use the terms “shipping API” and “shipping software platforms” interchangeably, but they aren’t quite the same thing.
A shipping API comprises unique code that exists solely to connect existing software platforms. Because APIs work behind the scenes to move information between your selling channels and your preferred carriers, there isn’t a portal or user interface where users do their work.
By contrast, shipping software platforms must be opened to access their features.
Here’s a non-shipping example of the difference between the two:
Say you live in Chicago, but you need to go to Dallas for a convention in two months. Here are two possible ways you could end up booking your flight:
OPTION 1 Using Google Flights, you type in your travel dates, select your preferred airports, and choose departure and arrival times. Almost instantly, Google Flights will show you flight options on Delta, United, American, and Southwest. You pick the outbound and inbound flights that work best for you (they’re both on Delta) and book them without leaving Google Flights.
OPTION 2 You have a Delta voucher from a flight you had to cancel a few months ago. If you use the voucher, your flight won’t cost you anything, but you must book directly through Delta’s website. After searching their site for options, you log in to your Delta account and book the ticket directly with them.
This example is a little oversimplified, but it gives you a good idea of the principles underlying APIs and platforms.
In this scenario, the first option (Google Flights) is an example of an API. Google Flights’ API searches multiple travel websites for selections that match your parameters and brings all the information back to you on the same page. After you book the ticket, the API sends your personal and payment information to Delta to complete the booking process.
The second option, booking directly with Delta, is an example of a software platform. You might end up on the same flight as you would have if you’d used Google Flights, but all your information stays within Delta’s system the whole time.
Knowing which option—a shipping API or a shipping software platform—is suitable for your e-commerce business depends on multiple factors, including the size of your company, the number of packages you ship, whether you ship internationally, your budget, and how much time you have to get your system up and running.
The following chart can help you make your decision:
SHIPPING APIs
SHIPPING SOFTWARE
Works best for mid-size to large shippers (but can absolutely help small businesses)
Any size business
Work completed in existing workflows
Work completed inside the program
Developer-led installations
Quick, easy installations
Immediately functional
Requires extensive employee training
Making it work—integrating a shipping API
To be fully functional, shipping APIs have to be installed by a software developer. They have the spells er, and technical skills needed to successfully connect platforms that may be built using different programming languages.
EHub’s shipping API has over 200 existing integrations, including for major carriers such as UPS, FedEx, USPS, and DHL, as well as shopping platforms like WooCommerce, Shopify, and Magento.
You can find our complete list of integrations here but know that if we don’t have an integration for your platforms, our talented developers can build one in a snap.
Whether you work on a platform we support or need a custom integration, EHub’s expert team takes pride in guiding you through the entire implementation process so that your processes are as efficient as possible.
Don’t believe us? Check out what our client Sean Clark, CEO of Black Label CBD, says about our implementation process:
Ingredients in the potion: shipping API features
APIs aren’t “programs” like Microsoft Word. They are more like the spell check, word count, and design settings within Word itself.
When you are looking at shipping APIs, you should be looking for a company whose API enables multiple features, including:
Discounted rates for domestic and international shipping
Order aggregation
Rate comparison capabilities
Multicarrier support
Address verification
Label generation
Package tracking
Returns management
Inventory management
Analytics reporting
Options for insurance
EHub’s shipping API offers all the features above, and then some. We’ve negotiated global discount rates with all major carriers (USPS, UPS, FedEx, DHL, etc.) that are lower than their published discounts. We can help you track and insure your packages or use your performance data to drive new efficiencies.
But the most significant difference between EHub and our competitors is the personal touch we’ve made our calling card. Instead of relying on automated chatbots or outdated FAQ pages on a website, our customers know they can call our in-house support team or reach out to their sales representative before, during, or after implementing EHub.
Not to brag or anything, but we’re basically a crystal ball that can answer all your questions.
Mastery is its own form of magic
Okay, this may surprise you a little, but EHub isn’t actually magic.
But we are a company of shipping experts and developer pros who are so good at our jobs that we make it look like magic. If your shipping management program is ready for a bit of abracadabra, let’s talk.
Thanks to Amazon Prime and other large retailers, 75% of consumers expect free delivery on e-commerce orders, even for orders less than $50. When you contrast that statistic with the fact that non-Amazon US retailers sell over $82.5 billion internationally, it’s easy to see the challenges and the opportunities facing small businesses considering going international. So, let’s answer the question: Why is international shipping expensive?
Why is international shipping so expensive?
The expense of international shipping often scares small business owners, but that’s because they don’t know the intelligent shipper savings tips that can save them money and make the expansion they’ve dreamed of possible.
Formulating international shipping rates is complicated, but there are five areas where you can cut costs: package dimensions, fuel surcharges, minimum package charges, value-added services/accessorials, and customs.
Package dimensions
Shipping companies use the square footage and weight capacity (or similar metric) of their transport vehicles in their rate calculations, which means larger, heavier boxes cost more than smaller, lighter ones.
Smart shipper savings tip: Small businesses looking to expand into international markets can reduce their initial costs by selecting a few products with similar dimensions that can be packed in standard boxes. This will allow you to buy your packaging in bulk and accurately forecast your international shipping costs.
Fuel surcharges
You pay fuel surcharges for domestic and international (aka cross-border) shipping, but since international shipping involves longer distances with sometimes dramatic differences in fuel prices between countries, international fuel surcharges are substantially higher.
Fuel surcharges are the average, not the actual, fuel cost your carrier pays to deliver your products. Your carrier agreement likely has terms setting a base fuel rate and a base fuel mileage as part of its terms. When the fuel price exceeds your agreed-upon base fuel rate, the surcharge kicks in.
Small business savings tip: Fuel surcharges aren’t set in stone, and they don’t have to be a mystery. A reputable carrier will be upfront about how they calculate their fuel surcharge. It’s also often possible to negotiate a lower fuel surcharge with your carrier(s).
Formulating international shipping rates is complicated, but there are five areas where you can cut costs
Minimum package charges
One of the primary methods carriers use to protect their profits is minimum package charges, meaning the lowest price a carrier will accept to deliver a package. If you aren’t careful, this fee can cost you a lot of money.
Say your minimum package charge is $7, and your carrier service agreement has a 50% discount on packages shipped to London. You have a package that would typically cost $10 to send across the pond, which, with your discount, should cost $5. But that minimum package charge means you’ll pay $7, and the 50% discount you had budgeted for is now only a 30% discount.
The same thing goes if you are sending a tiny package of earrings to a shop in Notting Hill. Instead of paying the $4.25 it actually costs, that sneaky $7 minimum will cost you an additional $2.75.
Smart shipper savings tip: Like fuel surcharges, minimum package charges can be negotiated. Start tracking how many of your shipments are affected by the minimum package clause in your agreement. If you’re regularly paying more than you should or not getting the total discount in your contract, ask to renegotiate your minimum package charge.
Value-added services & accessorial fees
Many of the features consumers take for granted are actually value-added services (VAS) or accessorial fees that you, as the shipper, have to pay for. Examples of these fees include:
COD
Delivery confirmation
Return services
Declared value
Residential delivery/pickup (yes, you can be charged more for having customers in residential neighborhoods)
Special-handling (documentation, hazardous materials certifications, medical equipment, etc.)
Delivery issues (liftgate delivery, unsafe delivery locations, or improper equipment for shipment receipt)
Non-delivery due to business closure, no recipient present, or security delays
Small business savings tip: Small businesses, especially e-commerce businesses, ship internationally are much more likely to be adversely affected by these fees. As with minimum package charges, data is your friend when negotiating these fees (which you can do).
First things first, you need to keep track of which charges show up the most often, which accessorials are the most expensive, and what packages/locations are most likely to trigger those charges. Then, examine your operations. Can you pack your products in smaller boxes? Can you use more than one carrier? Can you verify addresses before releasing packages for shipment?
After you’ve lowered your expenses as much as possible on your end, you can negotiate which fees you are assessed and how much you are charged with your carrier.
Customs/duties/taxes
This is one area you have to budget for. Customs and duties are taxes charged at both ends (export/import) of international shipping, and you can’t avoid them.
Small business savings tip: An international e-commerce shipping software can help you build an accurate estimate of what your customs costs will be so you aren’t ever surprised.
Level up with international shipping solutions for your business
If you want to save money on your international shipping, optimize your packaging, understand your carrier agreement, and negotiate your fees. Click here to find out more about how eHub’s e-commerce shipping software can help you do all of that and more so you can capitalize on opportunities for international trade.