Suppose it seems like UPS peak season surcharges are not only higher but lasting longer, too; you’re right. Since March 2020, UPS has had to adapt to the significant changes in e-commerce and the global supply chain. In a nutshell, people were buying more online… a lot more. Thanks to this increased demand, most shipping carriers had to adapt, UPS included.

One adaptation included changes to peak season surcharges. Typically, peak season is just around the 4th quarter, the busiest time of the year for retail. Since the logistics industry hasn’t quite recovered from 2020 (have any of us?), we’re seeing peak season stretch beyond 4th quarter.

It’s already here. Not only that, we’re seeing it split into what resembles a tier system. If you thought surcharges were expensive, well, I have some not-great news for you.

Peak Season Surcharges: Tier 1

July 4 — October 2, 2021 Fees:
The following applies to all US domestic, import, and export shipments, qualifying customers who have shipped >1,000 total packages or more than ten that required Additional Handling during any week following February 2020.

Peak Season Surcharges: Tier 2

October 2, 2021 — January 15, 2022 Fees:
The following applies to all US domestic, import, and export shipments, qualifying customers who have shipped >1,000 total packages or more than ten packages that required Additional Handling during any week following February 2020.

The Over Maximum Limits peak surcharge will be $250.00 per package

Handle your shipping costs and communication to customers accordingly, and have a plan for when things go sideways

Bonus Round of Surcharges for High-Volume Shippers

October 31, 2021 — January 15, 2022 Volume-Based Fee:
The following applies to certain UPS Air Residential, UPS Ground Residential, and UPS SurePost, who have shipped more than 25,000 packages during any week following February 2020.

October 31, 2021 – January 15, 2022

UPS SurePost

110% to 200% of February 2020 volume$1.15 per package
> 200% to 300% of February 2020 volume$2.15 per package
> 300% to 400% of February 2020 volume$3.15 per package
> 400% to 500% of February 2020 volume$4.15 per package
> 500% of February 2020 volume$5.15 per package

UPS Ground Residential

110% to 200% of February 2020 volume$1.15 per package
> 200% to 300% of February 2020 volume$2.15 per package
> 300% to 400% of February 2020 volume$3.15 per package
> 400% to 500% of February 2020 volume$4.15 per package
> 500% of February 2020 volume$5.15 per package

UPS Next Day Air Residential

110% to 200% of February 2020 volume$2.15 per package
> 200% to 300% of February 2020 volume$3.15 per package
> 300% to 400% of February 2020 volume$4.15 per package
> 400% to 500% of February 2020 volume$5.15 per package
> 500% of February 2020 volume$6.15 per package

All Other UPS Air Residential

110% to 200% of February 2020 volume$2.15 per package
> 200% to 300% of February 2020 volume$3.15 per package
> 300% to 400% of February 2020 volume$4.15 per package
> 400% to 500% of February 2020 volume$5.15 per package
> 500% of February 2020 volume$6.15 per package

Current Service Levels With UPS Service Guarantee:

The following applies to certain UPS Air Residential, UPS Ground Residential, and UPS SurePost, who have shipped more than 25,000 packages during any week following February 2020.

How Does This Affect Your Peak Season?

I think the most important thing to remember is that the peak season results in a lot more shipments, which can mean increased waiting times for customers, delays, and maybe increased charges. Handle your shipping costs and communication to customers accordingly, and have a plan for when things go sideways.

It could also be worth taking a look to make sure you’re getting the best rates on your business shipping. Our shipping specialists can perform an analysis that tells you where you’re already shipping most efficiently and exactly where you could be saving more. Contact us to get started on a custom analysis for your business.

While the technologies used to manage and ship products have changed dramatically over the last century, the business model for shipping companies looks almost the same. For decades, shipping companies have offered small businesses a single pricing formula based on weight and distance.

Think of it this way: a 40” smart TV weighs 20 pounds. So does a 20-pound dumbbell.

But the box the TV comes in is 43”x23”x5”, and the dumbbell can fit in a giant shoebox. With traditional shipping models, you’d pay the same amount to ship both a 40” smart TV and a single dumbbell to your store in Duluth even though the TV box will take up more space in the truck.

The United States Postal Service (USPS) has developed an innovative program to meet the modern needs of many small businesses by changing shipping prices for small packages.

Welcome to USPS Priority Cubic.

What is USPS Cubic mail?

Under Cubic, businesses are charged based on the package’s dimensions instead of the package’s weight. This means it costs less to ship small, heavy packages with Cubic than with traditional methods.  

And Cubic doesn’t just offer lower prices. It includes USPS priority mail delivery within 1 to 3 business days and free package tracking.

It’s a great deal if your business regularly ships things like clothing, candles, food, small home goods, books, subscription boxes, etc.

 

If it’s so great, why isn’t everyone using Cubic?

Cubic is a very specific program with strict rules that make it an excellent solution for some businesses but not others. 

If you want an in-depth overview of Cubic, check this out, but here are the basics:

  1. USPS Cubic mail is only available to businesses that ship at least 50,000 packages annually.
  2. Packages shipped with priority Cubic shipping have to weigh less than 20 pounds.
  3. USPS Cubic box, soft package, or priority mail poly bag dimensions must be .5 cubic feet or less with sides less than 18” (about the size of a shoebox).

What’s the Cubic formula?

USPS Cubic pricing is based solely on the size of your package. Here’s how to calculate your Cubic shipping price (sorry for the math):

1. Measure your package’s length, width, and height with each dimension rounded to the nearest quarter inch. For example, say that shoebox with your 20-pound dumbbell measures 14 x 8 x 5”

2. Multiply the dimensions (height x width x length) and then divide that number by 1728 (the number of cubic inches in one cubic foot). For your shoebox, it looks like this:

14 x 8  x 5 = 560

560/1728 = .3240

3. Round the decimal to the next tenth, meaning the .3240 of your shoebox rounds up to .4 cubic feet. (Note: you always round up, never down, with USPS Cubic).

4. Congratulations! Your package qualifies for USPS Priority Mail Cubic. 

Is Cubic right for your business?

We know that what you really want to know is, “How much will this save me?” Check out this chart:

 Zone 1–2Zone 3–4Zone 5–6Zone 7–8Zone 9
Priority Mail$23.20$29.20–$35.85$49.80–$59.75$69.35–$80.50$140.35
USPS Priority Cubic$7.32$7.32$7.32$7.32$7.32

A 20-pound Zone 1 package (something shipped 1–50 miles) costs $23.20 to ship with USPS Priority Mail, and the price increases as the distance to the destination increases.

But that same 20-pound package shipped with USPS Priority Cubic starts at only $7.32 to ship.

But here’s the deal—that $7.32 is the commercially listed starting price USPS offers.

EHub has negotiated low rates for our customers.

This means that you’ll still be saving money even after you pay for our API. But you’ll also get easy-to-print labels, order tracking history, address verification services, and insurance options.

At EHub, we know that shipping is essential, but overpaying isn’t. Drop us a line today to see how we can simplify your shipping and save you money.

In part one of this two-part blog series, we reviewed some basics of the major carriers available for international e-commerce shipping needs. From USPS to several others, you have a few options for international shipping – and which you choose will depend on a few different variables.

At eHub, we’re happy to offer international shipping e-commerce solutions as just one piece of our comprehensive shipping API services. From helping you navigate paperwork and customs documentation to negotiating non-US shipping deals, managing returns, and more, we’re here to help with every area of international commerce for our clients. While much of part one of our series evaluated your options for international shipping, today’s part two will dig into the factors you should consider while selecting your carrier.

Landed Cost

Within the shipping world, the term “landed cost” is commonly used to describe the final, all-in-one price. It includes not only shipping costs but also duties, taxes, and fees, plus potential add-ons like insurance.

Before any customer completes an international purchase of your products, you should lay out their landed cost. In many cases, this information will include details on who is responsible for any additional fees that might be present.

Full Details

In addition to the landed cost of standard shipping needs, you must know what’s included in a shipping carrier’s program. For instance, does the carrier include insurance for all orders, for only orders with a specific minimum price, or not? If it’s not offered at all, you may have to offer some of your own. Also, inquire about areas like whether there’s a charge for proof of delivery, how tracking will work, and more.

Customs Forms

While customs forms will be pretty similar or even identical between carriers, they’re essential to think about. This is actually an area where working with our team of shipping professionals is just as important as finding a great carrier – we’ll help you with things like value per unit, international currency, harmonized tariff codes, and others, though we require a partnership with a robust carrier in several of these areas.

Trade Regulations

Another area where it’s essential to have both a suitable carrier and the expertise of pros like ours is within trade regulations, which vary between countries you may be shipping to or from. For instance, Austria does not allow the shipment of any alcoholic beverages or medicine, among other things; China doesn’t allow the import of toy guns. Knowledge of these regulations is vital for limiting overhead and maintaining your company’s reputation.

If you’re like most business owners, this photo of someone being literally boxed in by shipping containers probably feels familiar.

Ask yourself:

If you nodded your head emphatically to any (or all) of these questions, we can help. 

EHub is an integrated platform that simplifies shipping by connecting your eCommerce systems. We have agreements with major carriers that allow us to get you more competitive rates without sacrificing customer service.

We’ve also perfected the art of international shipping. Let us teach you our ways.

 

What is international shipping, anyway?

Domestic shipping involves shipping goods or documents from and to locations within a single country’s borders.

By contrast, international shipping (also known as cross-border or global shipping) is precisely what it sounds like: importing and exporting goods across national borders by land, air, or sea. 

While the definition is simple, the application tends to trip people up. 

If you are ready to start shipping outside the United States, there are a few things you need to know right off the bat:

  1. International shipping will take longer and cost more. Don’t waste time fighting it. Embrace it and find the best solution for your company.
  2. Customs and duties, both in the originating country and the receiving country, are all forms of import/export taxes you can’t avoid.
  3. Because every country has unique import/export requirements, it’s easiest if you start shipping to a country that is part of a strong US trade agreement.  Mexico and Canada are the easiest since the US-Mexico-Canada Agreement (USMCA) simplified taxes and other requirements, but 20 other countries also have free trade agreements with the US.

 

Domestic vs. international shipping

As long as you aren’t shipping something liquid, fragile, perishable, or potentially hazardous, all you need to ship a package domestically is a shipping label.

International shipping is more complicated, with restrictions on the types of goods that can be shipped and more documentation requirements. 

Navigating all these regulatory requirements can be confusing and overwhelming, but if you’re ready to take your business to the next level by expanding to a global customer base, keep reading.

 

What qualifies as international shipping?

Shipping from the US to Canada is considered international shipping, even though they share a border because two sovereign nations are involved. On the other hand, if you want to send a package to Hawaii, 2,285 miles from the US mainland, you have multiple domestic shipping options.

But is shipping to Puerto Rico or Guam considered international shipping? They aren’t sovereign nations, but they aren’t states either. Do you need to fill out forms and pay duty taxes?

Here’s a basic rule of thumb:

LOCATIONINTERNATIONAL SHIPPING?
Any one of the 50 US statesNope (all carriers)
Puerto Rico & US Virgin Islands(US territories in the Caribbean)USPS: Nope (no customs forms or duty tax)Fedex/UPS/DHL: Yep (regular customs forms)
American Samoa, Guam, Northern Mariana Islands (all other US territories)Yep (all carriers)
Every other countryYep (all carriers)

What can I ship internationally?

Requirements vary between shipping providers (between the USPS and FedEx, for example), but there are limits on what you can ship within the United States. Generally speaking, things like airbags, ammunition, explosives, gasoline, illicit drugs, and marijuana (including medical doses) cannot be shipped domestically.

In addition to the list of prohibited items, some products have restrictions on domestic shipping, including:

All items prohibited and restricted for domestic shipping cannot be shipped internationally. Additionally, you can’t use priority mail express to send packages containing currency (coins, banknotes), securities of any kind that are payable to the bearer (like traveler’s checks), precious stones and metals, and other valuables to other countries. 

international shipping (also known as cross-border or global shipping) is precisely what it sounds like: importing and exporting goods across national borders by land, air, or sea

What documents do I need to ship outside the US?

Remember your pre-Covid trip to Cancún? Before you landed, the flight attendants had you fill out a tourist immigration form listing where you were coming from, what airline you flew in on, where you were staying, and when you’d be leaving. 

After landing, you likely gave this form to an immigration officer before going through customs, where you had to fill out another form “declaring” whether or not you were bringing restricted items and/or large amounts of cash into the country with you.

Most governments treat packages like tourists and require similar documents to accompany them across borders. The most common forms needed for international shipping are:

Depending on where and what you’re shipping, you may also need a/an:

 

International shipping with training wheels

EHub is basically international shipping with training wheels. We have carrier and cart integrations that can save you the time and stress of figuring out documentation and tax requirements while capitalizing on your expansion opportunities.

Shipping, savings, simple. Get in touch with us today to get started.

For eCommerce businesses that ship internationally and domestically, shipping factors and variables are a bit different. However, modern technology and improvements have created a situation where numerous companies have the resources to ship internationally with ease, not only significant corporations – this used to be the case in past generations.

Introduction


At eHub, we’re happy to help with a wide range of international shipping needs and challenges, from helping you choose the ideal carrier to filling out the correct paperwork, managing international returns, and many other areas. That first area, choosing a carrier, is often a bit more complex for international shipping than for domestic – this two-part blog series will go over several factors you should be considering, which our team will be happy to help you with during any international shipping process.

Major Carriers

Generally speaking, there are four significant companies or carriers that ship internationally:


International First

One crucial tip for companies who perform both domestic and international shipping: When finding a new carrier, ask about international shipping variables first. As noted above, the significant carriers vary widely in their international shipping guidelines, pricing, and more – there isn’t as much difference between them when you get to domestic shipping areas, so your primary focus should be on the area with more variability.

When finding a new carrier, ask about international shipping variables first

Certain carriers might limit regions or countries they will ship to, which could be a big issue for your business. If you’re unsure about a given carrier, you may consider only shipping internationally to a few countries first to see if the program works for you.


Wrapping Things Up

For more on choosing an international shipping carrier or to learn about our eCommerce shipping services, speak to the staff at eHub today.

Why Ship Internationally?

You’ve seen the stats, like this one from CIEDEC—that 95% of the world’s consumer market awaits you outside US borders. And, after reading our tips for international sales growth, you’ve laid the groundwork to expand your international business shipping horizons. Now, it’s time to get up to speed with international shipping.

Though it may seem daunting, follow these steps, and your products will soar—literally.

1. What Can I Ship, and Where Can I Ship It?

First, review the Commerce Control List (CCL) to verify whether your product is allowed for export or if it is a controlled commodity that requires an export license. Also, depending on where and to whom you are shipping, you’ll want to check whether the government has sanctions or embargoes and prohibitions on end users or the product’s end-use. Then, check the Country Commercial Guides to determine whether your product is allowed for import in a particular country.

If your product does require an export license, determine your product’s Export Control Classification Number (ECCN) because you’ll need it to file an Electronic Export Information (EEI) form. You must also file an EEI if your shipment’s value exceeds $2500.

The good news is most commercial products do not require an export license and are designated EAR99 in the Export Administration Regulations, but before exporting, you will still need to ascertain your product’s Harmonized System classification and Schedule B number to complete the export and import forms.

An easy way to start offering international shipping to Canada and Mexico first and branch out from there. Trading with our neighbors has been simplified with the US-Mexico-Canada Agreement (USMCA) which allows qualifying small package shipments valued at less than $150CAD (in Canada) and $117USD (in Mexico) to ship duty-free, and the taxes have also been simplified.

Or, select from the 20 countries with a free trade agreement with the US. If the customs regulations of the country you are shipping to are rather complicated, and you plan to ship there frequently, you may want to hire a customs broker to help you cut through their red tape.

33Countries with Free Trade Agreements with the United States
AustraliaBahrainCanadaChile
ColombiaCosta RicaDominican RepublicEl Salvador
GuatemalaHondurasIsraelJordan
KoreaMexicoMoroccoNicaragua
OmanPanamaPeruSingapore

2. Decide Who Should Pay For What

Incoterms define the rules of the ownership transfer… for instance, During the delivery process, when does ownership transfer; who is responsible for covering the licensing, customs fees, and taxes; and who, if applicable, is insuring the product for loss and damages? What’s the de minimus value for the country you’re shipping to?

As you consider handling these expenses, you should also estimate what your landed cost (or total expenses from the point of sale to the final receipt of the product) will be—there are many online calculators available to help you. Does it make sense for you to offer free shipping? Split the costs? Will you accept returns, and if so, who covers that cost? Should you adjust your product pricing to reflect the additional cost and work?

An easy way to start offering international shipping to Canada and Mexico first and branch out from there

Selecting which carrier to use is a big part of this step. Price is often the primary concern, but speed and convenience of delivery are factors as well. While USPS can often be the least expensive, its tracking capabilities and delivery responsibilities end once the product leaves its jurisdiction. Many private carriers handle delivery from door to door and offer more services, but those costs will fit into your overall price.

3. Sell Your Product(s) and Get Them On Their Way

Yay! You’ve cut through the red tape, done your research, and it’s paying off—the cash register is ringing.

Now, it’s time to generate a detailed Commercial Invoice (or Pro Forma Invoice for samples) outlining the terms of both the sale and the delivery, then finalize the required export and import forms (which you will have already determined through your research). Some of these can be completed online.

Then, package your product in a sturdy container that meets the standards of your selected carrier; create and affix your international shipping label, carefully proofing your recipient’s address and contact information; and attach your Commercial Invoice along with any other necessary customs paperwork.

Finally…

Easy as 1-2-3.

  1. Research 2. Analyze 3. Ship

Right? Okay, maybe we’re oversimplifying it. But, once you perform the cost-benefit analysis and create the foundation, the process will become systematic and, ultimately, well worth it.

Final Thoughts

However, if you find you do not have the capacity for it. eHub can help. We’ve done our due diligence in the export arena, developed relationships and pricing contracts with multiple carriers, and built the databases to support a seamless e-commerce API that will facilitate every international sale you make. To explore whether our international shipping solution could work for you, click here.

At eHub, it’s our pride to help clients work with all the major shipping carriers available to them. We work with UPS, FedEx, DHL, and, of course, USPS, or the US Postal Service, providing a vast range of shipping options and services from and to any area of the country.

Our carrier-related services span several areas, including helping our clients understand and react to rate increases from any of these carriers. USPS recently filed its planned rate increases for the 2021 year with the Postal Regulatory Commission (PRC) – what are these changes, and how might they impact your standard USPS shipping formats? We’ll go over this plus dig into some of the general benefits of using USPS to begin with.

Benefits of Using USPS

Firstly, why USPS? There are several reasons why many businesses rely primarily on the US Postal Service for their primary shipping needs, including:

That said, many of USPS’s competitors also have these same themes at play. For this reason, shipping rates will often be one of the key elements a business considers when choosing a shipping partner. Let’s go over how USPS rates will change in 2021.

Basics and Approval

As noted above, USPS has submitted its planned rate increases to the PRC for 2021. We’ll review the precise rate increases briefly, but some general basics first.

Firstly, if approved, the new USPS rate changes will kick in on January 24, 2021. In addition, a $100 charge will be imposed on packages found in the USPS mail stream that are larger than the maximum size of 130 inches (combined length and girth) – this applies to all service levels, from standard ground and air mail up to First Class package service and any areas in between.

Average Increases for Common Labels

Here are the average percentage increases that will be seen for the varying service levels within USPS once the rate increases take effect – if they are approved, which has not happened yet:

Are these changes enough to impact your business and make you consider switching to another shipping carrier? This is where our pros come in – we’ll use all our latest techniques to help you find the best shipping company and save money on shipping in several ways.

For more on USPS rate increases or to learn about our shipping API or software programs, speak to the staff at eHub today.

For new businesses, winning in your local market is just the start. As your e-commerce store starts to scale, you should look at options for growing international sales.

Growing your business overseas requires a lot of preparation, research, and planning. Here are our best seven tips for a successful transition to an international market:

Study the Market and Product Demand

Before you aim for a new market, see if your products are getting attention in other countries.

Are you getting a lot of traffic worldwide? Do you already have repeat customers from places outside the US? Answering these questions should provide you with insights on how to adapt to a new market.

You can look at this using Google Analytics. If you don’t have the tracking pixel installed on your website, you can learn more about doing it here.

Also, research to find out if there’s a high demand for the type of product you sell. If there’s a need that’s not met in one country, you can be there to fill that gap by growing international sales.

You can also use Google Trends to see what people are searching. 

Translate Your Website to the Local Language

Make sure that international customers can understand your website in their own language. No one will buy your item if they can’t read your product description.

However, don’t settle for simple translation tools such as Google Translate. You want to make sure to hire a professional translator who can write good e-commerce content.

Otherwise, there may be inaccuracies in your copy that might throw off your audience.

Aside from translating your website, also make sure that your store converts prices into their local currencies. Many tools on Shopify help you do this, such as Transcy, for example.

Do Research on the Country’s Culture and Customs

While translating your website is a must, it won’t be enough to adapt to a new market overseas. You’ll also have to research the country’s culture and customs.

For example, selling products made out of ivory is illegal in many European nations, such as Italy. Countries also have different definitions of what they consider “ethical marketing” as well.

Find brands that align with yours that are currently selling in those markets. You can research to see what they are doing, even contact the brand and ask them what it is like.

Get International Payment Options Ready

As you get ready to scale overseas, start thinking about how you’ll be accepting international payments.

The preferred payment method of the customer will depend from country to country. For example, cheques are still commonly used in France, while German buyers prefer to purchase directly.

Consider adding PayPal as a payment option on your website. The platform makes it possible to take payments from over 200 countries in 25 currencies. It also has a good reputation regarding security and purchase protection.

While translating your website is a must, it won’t be enough to adapt to a new market overseas. You’ll also have to research the country’s culture and customs

A not-so-fun part of expanding your business overseas is getting yourself legally ready. Some countries will require specific documentation before you can operate in their territory.

You’ll also have to research how you plan to pay taxes in the country. You’ll have to adhere to the laws determined by the IRS and the tax authority of the country you’re selling in.

Figuring all of this out by yourself can be a headache. That’s why we help our customers take the stress off their backs by handling all the documentation needed to ship internationally.

Provide Excellent Customer Support

A vital factor to consider as you shift your business overseas is how you will handle customer service. Remember that your customers will be in different time zones and may not speak English.

To overcome these roadblocks, you can invest in chatbot technology to answer customer questions anytime. Another strategy is to hire an international remote team that can provide customer support even during late times.

Make sure you include tracking information for any shipments, as well as posting expected transit times for overseas shipments.

Make International Shipping Affordable to Customers

Lastly, your shipping strategy could make or break your success overseas.

Unexpected shipping costs can drive your potential customers overseas away. In fact, high shipping costs are one of the most common reasons why customers abandon their carts.

If you’re a small or medium-sized business, however, it can be difficult to find competitive rates on international shipping. Many roadblocks can get in the way, such as paperwork, negotiating deals with carriers outside the US, and managing international returns.

At eHub, we help take care of international shipping so you can get started selling internationally right away. We have hundreds of connections with carriers worldwide to ensure you get the best rates every time – especially internationally!

Wrapping Things Up

If you’re serious about growth, international markets offer a unique opportunity to scale quickly. It will require careful planning on your end, but the results can be very lucrative in the long run.

eHub can help you transition seamlessly as you enter a new market. Our platform allows you to scale your shipping to multiple countries without having to negotiate rates or hurt your profit margins. Contact us today for a free demo to learn more.

Summer is almost over, and it’s time to think about your strategy for the holidays.

The holiday season is typically the most chaotic time regarding online orders and shipping. To make it worse, the world is currently battling against COVID-19, which makes 2020 a year like no other for e-commerce.

As stressful as everything may seem, we’ve got your back.

Here’s our 2020 shipping checklist to make sure you stay on top during this year’s holiday season:

1. Forecast Demand

As the pandemic continues, you must forecast customer demand for the upcoming holidays.

COVID-19 has changed everything from the customer’s channel selection frequency to shopping and the products they want. For example, there’s a more robust demand for items that align with social distancing, such as entertainment products or home goods.

Look at your sales during the lockdown — which types of products were in high demand? It should give you a clue on what to expect from customer behavior during these next months.

There is a science to forecasting demand, but let me give you a simple metric: compare sales from March to May this year versus last year. Take that percentage difference and multiply last year’s holiday sales to see how much bigger it could get.

Also, think about talking with your 3PL to find out how they can help you prepare for the upcoming holiday demand.

2. Implement a Strong Communications Plan

Another critical factor to consider during the holidays is communication with your customers.

Make sure to keep them up-to-date with each of their orders. One thing that will make customers worry, for example, is how COVID-19 will impact shipping delays. You’ll need to provide tracking and let them know when they can expect the item to arrive at their doorstep.

During your communication with your customer, it’s also a good idea to promote upsell offers. You can run post-purchase email campaigns with other products they can buy to complement their order. It will help deliver more value to the customer and boost your average order value.

3. Get Ready for More Customer Returns Than Usual

Dealing with customers is part of running an e-commerce business. However, you can expect returns to skyrocket during the holidays.

The reason is that customers will feel reluctant to step into retail stores due to virus fears. To gain peace of mind and avoid getting infected, they’ll be doing most of their shopping online.

Customers love the ability to buy and try on or see how something looks in real life. They often buy two or three sizes or styles, keep one, and return the rest.

As a result, your business must come prepared with reliable customer service staff or shipping software to manage returns effectively.

Dealing with customers is part of running an e-commerce business. However, you can expect returns to skyrocket during the holidays.

4. Get Shipping Insurance

No one can predict what will happen to your product once it is out for delivery. Nothing is worse for a customer during the holiday season than to make a purchase only to have the item damaged or never even arrive.

With an expected surge in shipments this holiday season, these problems will be multiplied. You can protect yourself and your customers, however, with shipping insurance.

It’s why you want to plan in advance and get shipping insurance, which is easier than you think. No matter what happens to your product, you’ll be protected against significant financial loss and gain peace of mind.

The holidays are the time when orders reach their peak throughout the year. As a result, you can expect new rules, restrictions, and deadlines for all major carriers. Look into the specific provisions of your carrier for different times of the year and figure out what measures and fees are required.

5. Do Research on Seasonal Fees and Restrictions

Keep in mind as well that major carriers will be surcharging their rates on shipping due to coronavirus and customer demand. For example, UPS plans to make businesses that ship more than 25,000 orders per week pay an extra $1 to $4 for each package.

6. Offer Multiple Shipping Options

If you offer free shipping, you’re probably sending things via Ground or Priority Mail. Those options have been impacted the most by slow delivery times, and you’ll have customers who will want something faster.

Offering an expedited shipping option – like 2-day, overnight, or even same-day delivery, is a must this holiday season. Here’s why:

  1. It sets clear expectations for delivery times
  2. Customers have the option to pay for faster delivery
  3. Free shipping has a higher perceived value

Anyone who is expecting free shipping will see that delivery times affect cost. They will appreciate that the slower option is still accessible compared to the expensive, expedited option.

7. Make Your Packaging Stand Out

The holidays represent a unique opportunity to strengthen brand loyalty and delight new customers. One of the best ways to do this is to create a fantastic unboxing experience that wows them.

Branded packaging is the first approach because it makes each purchase feel unique and delivers a great impression. Since shoppers also buy gifts for their friends and family, you’ll surprise multiple customers simultaneously.

Customers also love to share brand packages on social media, which promotes your store and boosts your reach.

The next step is making what’s inside stand out with different packing paper, a hand-written thank you note, or even surprise gifts you’ve included.

All of these things and more contribute to making an unforgettable unboxing experience.

8. Use the Right Shipping Software

There are so many things to handle regarding shipping during the holidays. You have inventory to manage, orders to pack and ship, tracking, and many more tasks on your list.

Software is the best way to improve processes like this. With automation, you can improve the pick-n-pack process, automatically select the correct shipping method, batch print labels, and update tracking information.

Essential Hub’s software provides all the tools you need for success this holiday season. Not only do we help you get the best rates on shipping, but our software also comes with order tracking, inventory management, and more.

A vital shipping program is central to e-commerce success. Very few e-commerce companies, however, know how to set one up. This guide will walk you through how to set up shipping on your Shopify store [and more].

It doesn’t matter if you have the best user experience and products on your website. Without the right shipping strategy to satisfy customers, you’re shooting yourself in the foot.

For example, a customer finds a product they like from your store and adds it to their cart. They discover your high shipping rates and start hesitating in their purchase. They search the web and look for cheaper alternatives. Next thing you know, they’re ditching their cart and going to your competition.

In this complete guide, you’ll learn everything about setting up a shipping strategy on Shopify to ensure this never happens. Here’s what we’ll cover (click any topic to jump ahead):

  1. Why you need a shipping strategy.
  2. Shopify’s default shipping options.
  3. How to set up shipping zones and rates from the Shopify admin.
  4. Should you offer free shipping?
  5. How to offer free shipping on Shopify.
  6. How to pick the proper packaging for orders.
  7. The best shipping tactics you can use to boost your business.
  8. Useful shipping apps you can download off Shopify.
  9. Use our Shipping on Shopify checklist to get started.

Let’s dive in.

Why You Need a Shipping Strategy

Your shipping strategy is what could make or break your online sales.

Don’t believe us? Check out these statistics:

One thing to note is that your shipping strategy will change over time. For example, you might change your shipping carriers, price, unboxing material, etc.

What’s important is defining a game plan now and continuing to adjust as you grow.

Understanding the Different Default Shipping Options on Shopify

When you sign up with Shopify, the platform offers three different plans: Basic, Shopify, and Advanced.

Each plan you choose has different options and discounts when it comes to shipping. Depending on your Shopify plan, you might be eligible for reduced shipping rates from these three carriers:

Let’s take a look at how each Shopify plan differs from each other:

 Basic PlanShopify PlanAdvanced Plan
Monthly Price$29/Mo$79/Mo$299/Mo
What does the plan consist of?All the basics for starting a new businessEverything you need for a growing businessAdvanced features for scaling your business
Shipping Discountup to 64%up to 72%up to 74%
Print Shipping LabelsYesYesYes
USPS Priority Mail Cubic pricing YesYes

As you can see from the table above, the higher you upgrade, the more discounts you’ll get on shipping and labels. While each plan offers the possibility to print shipping labels, the basic plan doesn’t come with USPS Priority Mail Cubic pricing.

While Shopify offers reasonable rates, you’ll still gain more value using a shipping app. With Essential Hub, we connect all your eCommerce operations so you can get the best discounts and save up to 35% on shipping.

Shopify Shipping – How to Set up Zones and Rates

Once you decide which plan is the right fit for your business, it’s time to get started on your shipping strategy. The first thing you’ll have to do is set up your zones from the Shopify admin.

What Is a Shipping Zone?

On Shopify, a shipping zone is a specific location based on region or country. It defines where your package is shipping from and to which destination.

Your shipping zones play a vital role in setting up your rates. Typically, the farther you ship the item, the higher shipping costs will be.

Here’s how you can define your shipping zone from the Shopify admin:

Step 1: Go to the Shipping Section From Your Admin

From your admin dashboard, click on “Settings” at the bottom left on your screen. Click on “Shipping” to start setting your zones and rates.

Step 2: Click on “Manage Rates”

Once you land on the shipping section, hover over the “General shipping rates” section and click on “manage rates.”

Step 3: Scroll Down and Click on “Create Shipping Zones”

On the “manage rates” section, You’ll get to see all of the products that you added to your store. Scroll down underneath to get access to your shipping zones.

In the example above, we already defined some specific rules for shipping in the US. We’re offering shipping for product orders of $25 and up.

To create a new shipping zone, click on “create shipping zones”.

Step 4: Name Your Shipping Zone and Add Countries

In the textbox, add a name to your shipping zone to differentiate it from others.

When you create your zone, you can search and select countries where you want to ship. Once you choose them, click Done.

Step 5: Add Any Rates You Want for the Shipping Zone

Once you create your shipping zone, you can start adding rates that apply to it. You can set your own prices and let the shipping carrier do it.

Should You Offer Free Shipping?

As you set up your shipping zones and rates, you may ask yourself — should I offer free shipping or not?

You already know that customers love it. 91% of online customers will leave an eCommerce store if they don’t offer free shipping.

As practical as it may be for customers, free shipping might not be appropriate for your business. There are many different factors to consider before offering free shipping.

Here are a couple of things to consider before you make the jump and offer free shipping on your store:

You’ve Calculated Your Profit Margins

First, you’ll have to do some math to determine if free shipping is right for your business.

Keep in mind that you’re the one who’s going to have to cover the shipping costs. That often means you’ll have to increase the price of your product to cover costs.

You also have to be careful when raising the price of your item — you want the price to cover shipping and marketing costs but not high enough that it scares away customers from buying from you.

A good strategy on Shopify is to offer free shipping when a specific amount of items are ordered, which we’ll get into later.

Your Supplier Offers Free Shipping

Whether or not you should offer free shipping also depends on your supplier.

If the supplier you choose offers free shipping, then it’s ideal to offer free shipping to your customers. In this case, it won’t be fair to charge them for shipping costs.

If they don’t offer free shipping, however, it’s up to you to decide whether you want to cover the shipping costs and make your customers pay for them.

The Competition Is Offering Free Shipping

If competitors in your niche are offering free shipping as part of their strategy, then it’s best that you do the same.

You don’t want your store to be falling behind everyone. However, even if the competition isn’t offering free shipping, it could still be a way to make your business stand out from the crowd.

Online customers value free shipping during their purchase. If they explore their options and see that you’re the only one who offers free shipping, they’re most likely to pick you.

Your Customers’ Location

Ask yourself: where are your customers located? Are you only shipping to the United States, or do you have customers overseas as well?

The customer’s location has a significant influence on your shipping costs. That’s why it might be better for your store to offer free shipping only to specific locations.

How to Offer Free Shipping on Shopify

Once you’ve considered all these things and decided if your business will offer free shipping, it’s time to set it up on Shopify.

There are various ways you can set up your free shipping options from the Shopify admin. You can offer free shipping based on the following criteria:

Let’s take a look at the different steps and ways you can set up your free shipping:

Step 1: Go to the Shipping Section From Your Admin

Similarly to setting your shipping zones, click “Settings” at the bottom left of the Shopify admin. After that, click on
“shipping.”

Step 2: Click on “Manage Rates”

Once you land on the page for “Manage Rates,” you want to scroll down and click the specific zone where you want to offer free shipping.

Step 3: Click on “Add Rate”

To set up your free shipping, click on “add rate.” It’s where you can create specific conditions for free shipping to apply.

Step 4: Type in Free Shipping and Click on “Add Conditions”

When you click on “add rate,” you’ll receive this popup on your Shopify admin:

In the text box, type “Free Shipping” to differentiate the rate from others. Next, click on the “add conditions” button to define the conditions of your free shipping.

Step 5: Offer Free Shipping Based on Product Weight or Order Price

When you click on “add conditions,” Shopify offers you two choices: either provide free shipping based on weight or product price.

If you want free shipping based on order price, check the “Based on order price” box. You’ll be able to provide a minimum order amount for customers to qualify for free shipping.

However, to offer free shipping based on item weight, check the “Based on item weight” box. Here’s what will pop up on your Shopify admin:

From there, type in the minimum item weight, and you’re good to go.

Choosing the Right Kind of Packaging for Your Orders

Packing is one of the most significant factors of a successful shipping strategy. You don’t want to make the mistake of spending more than you have on packaging or choosing the wrong material to transport your product.

Here’s how your store can select the proper packaging to fulfill your orders:

Determine Your Packaging Budget

First, you’ll need to assess your current budget for packaging.

How much money you’re willing to invest determines the packaging material you’ll use. For example, a popular brand option is corrugated cardboard, which ranges from around $.075 to $0.95.

It’s also possible to get free packaging from Shopify’s three leading carriers: DHL Express, UPS, and USPS. You can order your free shipping supplies online or pick them up. Check out free shipping supplies from the USPS here.

Pick the Appropriate Packaging Weight and Material

Since the shipping cost relies on the size and weight of your products, you want the packaging to be light. Your box should be big enough to transport your product but not heavy to the point it inflates your shipping costs.

For the best delivery, your order must be protected with suitable material. Here are examples of different types of packaging material you can choose from:

Paper and Cardboard

Cardboard is one of the best packaging materials for shipping. It’s low-cost, durable, and is easy to customize to reflect the look and feel of your brand. It’s particularly useful when it comes to shipping heavy products.

Poly Mailer

Poly mailers are lightweight and adjust to different product weights. They’re ideal if you’re shipping products that don’t need much cushioning, such as socks or shirts.

Plastic

What makes plastic practical for shipping is that it’s lightweight and flexible. As a result, you’ll be able to ship more items with less packaging material.

Airbags

Airbags are handy when filling up empty spaces in your packaging box. It’s something you want to consider if you sell items with sharp edges. They also act as cushioning for fragile objects.

Glass and Jars

The glass looks great aesthetically, and its transparent material makes your product visible. The obvious disadvantage, of course, is that it’s pretty fragile and can break during transportation.

To pick suitable packaging for your product, find and assemble different materials. From there, select the best fit for the product you plan to ship. While the outside might be plain, you can still create an incredible unboxing experience with a few simple additions inside the packaging.

Make Sure the Packaging Gets From Point A to Point B

It doesn’t matter how fancy your packaging looks. If your packaging can’t travel without being damaged, it will be useless.

It all goes back to picking the suitable material for packaging. If your packaging material isn’t strong enough, customers will receive broken or damaged products.

It will cost you less to invest in adequate packaging design than replacing damaged products.

Tactics You Can Use to Boost Your Shipping Strategy

As you can see from the above, Shopify makes it easy to set up and manage your shipping. If you want the best results, however, you also need some strategy.

Use Third-Party Shipping Software

If you’re handling one or two orders a day, then you won’t mind using the Shopify platform to print shipping labels. Once your volume rises, however, you’ll want to use a software program to help. Effective shipping software provides better rates, automation (always selecting the best price for the desired service level), and the ability to print labels either all at once or one at a time.

Essential Hub integrates with different software solutions to provide our clients with the best system for what they need. If you have any questions about the software, please reach out using the contact form at the end of this post.

Offer Free Shipping Without Hurting Your Profits

As mentioned earlier, free shipping is an effective way to capture customers’ attention and stand out from competitors. It’s a marketing tactic that can skyrocket your sales and continually drive new customers.

There’s a catch; however, remember that you need to think about how free shipping could potentially affect your profit margin. While free shipping can boost sales, you’ll have to cover all shipping costs as well.

One way to effectively do this is to offer free shipping when customers pay a certain amount in your store. It could help you squeeze in some cash to pay for shipping.

Let’s say, for example, that your average order cost is $22. To invite customers to pay more in your store without feeling like they’re being tricked into buying more, you can offer free shipping for orders above $25.

Alternatively, you can offer free shipping on any order with a particular product. You can choose those that you know have higher margins and can cover the cost of free shipping.

Another option is to offer a membership program for customers who seek free shipping. Customers are charged a yearly or monthly fee in exchange for free shipping on items.

It’s all about testing what works and making changes from there.

Make Your Order Fulfillment and Return Policies Clear

Your store needs a concise order policy that sets clear expectations between you and your customers. Setting clear expectations is a simple tip when getting started in shipping.

Online shoppers want access to all relevant information about shipping. They need to know where you ship to and when they can expect the item to arrive.

One thing that matters to them, in particular, is your shipping cost.

For example, if part of your strategy is to offer free shipping, you need to mention this the second visitors land on your home page. Doing so could completely transform your conversions.

When announcing free shipping on your website theme, make sure you make it work in the Shopify backend by setting it as a rule. This can be done by making an announcement under your theme settings.

If you’re delivering overseas, customers need to know exactly how much they’ll pay to cover shipping. Nobody likes nasty surprises.

Here are some questions that your shipping policy should cover:

Charge by Flat Rate

Flat rate shipping consists of offering a single rate for shipping an item, regardless of weight or size.

It means that the value or size of products doesn’t get taken into account. For many eCommerce brands, this simplifies the shipping process and encourages buyers to spend more.

For example, for each order, you could offer a flat rate of $5.

Setting up a flat rate is a good strategy if you’re starting out and don’t know how much your shipping costs will be. However, you can still offer different rates based on how fast the customer wants to receive the item.

For example, if customers really want to get your product in two days, you can set up a special rate for two-day shipping on Shopify. They’ll receive the item faster, expecting that they’ll have to pay a higher flat rate.

Get Insurance for High-Value or Fragile Items

If you’re selling an expensive or fragile item, you want to ensure you get insurance to protect it in case issues arise.

Insurance is handy if your product gets lost, stolen, or broken during shipping. When something goes wrong, you’ll need to prove the item’s value, and the insurer will pay you back the total amount.

While insurance is helpful, remember that you might have to raise your shipping rates to cover it. Logistical services such as USPS, UPS, and DHL only offer free insurance for items up to $100.

Alternatively, there are some really great services out there, like Route, an app we will review below. They let the customer add insurance at checkout and manage any issues with lost, stolen, or damaged packages.

Actively Engage With Customers During Ship”
ing With Email Marketing

Once the item gets shipped out, it’s an excellent time to engage with customers and improve their experience with your brand.

A good tactic is to send email updates to your customers once the item ships. You can also feature sales and promotions for other products that could interest them.

Check out this perfect example from The Dollar Shave Club. Each time a customer buys from their store, they receive an order confirmation email with the shipping date and items they can buy before the product ships:

Offer Same-Day Delivery

Offering same-day delivery can boost your sales and make you stand out from other stores. 61% of customers will pay extra bucks to get their products shipped the same day.

Same-day delivery is a great way to boost customer satisfaction and brand loyalty. Best Buy, for example, has rolled out same-day delivery since 2015:

To take advantage of same-day delivery, customers must order with Best Buy Before 3 p.m. local time. It’s available seven days a week, and shipping costs depend on the product.

When offering same-day delivery, you need to measure how it’s impacting your sales. If more transactions are driven thanks to it, and it’s enough to pay for shipping, then it’s a good strategy.

To set up same-day delivery on Shopify, take advantage of their same-day app – you can find it on the app store. To set up local delivery, you’ll need to turn on one of your locations as available. You can do this through the Admin panel settings Shipping and Delivery button Local Delivery section (click manage next to a location).

Create An Incredible Unboxing Experience

Your goal as an online store should always be to stand out from the crowd. One excellent way you can do this is to ensure customers remember to open your packages every time.

A unique unboxing experience makes your business memorable and leaves customers hungry for more. As a result, you’ll create a loyal customer base that will repeatedly return to your site.

Here are some ideas of how you can do this:

The best part is that you don’t have to spend much money creating custom packages for all the different sizes you ship. With stickers on the outside and cool stuff inside, you can make any package stand out!

Useful Apps That Will Up Your Shipping on Shopify

Before we conclude, there are many apps you can use on Shopify that make the shipping process so much easier for you and your customers.

Here are the best apps you can integrate on your Shopify store to better manage shipping at each stage of the product delivery:

1. Free Shipping Bar

Free Shipping Bar is a tool that displays your free shipping offer in a bar on your website that you can easily customize. Its goal is to encourage customers to add to their carts and buy more.

As customers add more to their cart, the Free Shipping Bar will show them progressive messages on how much they have left before they get free shipping.

You can congratulate customers once they have landed on a free shipping offer and measure the results of each bar to see which free shipping goals create more sales.

As a bonus, its currency detection features make it easy to auto-detect the local currencies of visitors. The platform then converts the free shipping amount with real-time exchange rates.

Pricing:
 

2. Parcelify

Parcelify makes it simple to create custom rates for your Shopify store.

With Parcelify, you control the shipping pricing and options that customers see during checkout. Customers can get live, accurate rates of what they’re actually paying for shipping.

Parcefily also comes with local delivery and in-store pickup. With cheaper options to receive their product, you’ll satisfy customers and drive more repeat purchases.

Pricing:
 

3. AfterShip

Tracking and managing each customer shipment can be a time-consuming headache. Aftership cuts the work in half by tracking all shipments across 600+ carriers in one place.

AfterShip is currently being used by more than 30,000 Shopify stores worldwide. You’ll be able to keep customers updated on the placement of their orders and when they can expect delivery.

As a result, your store will see a drastic decrease in customer inquiries and complaints.

Pricing:

4. Tracktor

The modern customer has higher expectations than before. One of those expectations is expedited shipping and being able to track down exactly when their item arrives.

That’s where Tracktor comes in.

Tracktor makes it easy for customers and store owners to track down the delivery of a shipped item. The platform integrates with hundreds of carriers across the globe, so you can track exactly where the package is going.

The best part? You can do all of this from a single app. Customers won’t have to come to you and ask, “Where’s my order?” anymore. As a result, you’ll boost customer satisfaction and reduce support costs.

Pricing:

5. Route – Shipping Insurance

Route

No one can predict what can happen to your product during shipping, which is why getting insurance is so important.

Route is a tool that offers insurance on any item that gets lost broken or stolen during delivery. Customers gain peace of mind knowing that their purchases are guaranteed, and you get to keep more of your revenue.

Since Route covers the cost of refunds, you won’t be losing any money. The app is also 100% free for merchants and only takes a few minutes to set up on your store.

Pricing:
 

6. Aftership Returns Center

As frustrating as custom returns can be, there’s software you can use to handle returns more efficiently. Aftership Returns Center uses automation to track and manage your returns like child’s play.

When you integrate Aftership into your online store, you’ll be able to:

Pricing:

7. Sales Box

Sales Box offers an exciting way to manage shipping and personalize offers for your customers.

Your store can set up different shipping fees and promotions for individual products or countries. Right under the “add to cart” button, customers will have all the shipping information.

Each sales box is fully customizable and easy to edit. No coding knowledge is necessary — you get instant access to templates that make your offer stand out.

Pricing:

Next Steps

There you have it! By following our tips and tricks above, you should have a solid roadmap of where to go with your shipping strategy. It might require some testing, but soon enough, you’ll be able to blow customers away with your fantastic service and delivery.