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.
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.
Additional handling charges increased from $3.00 per package to $3.50
Large Package peak surcharge increased from $31.45 to $40.00
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.
Additional Handling peak surcharge increases from $3.50 to $6.00 per package
Large Package peak surcharge increased from $40.00 to $60.00 per package
The following will apply to all US domestic, import, and export shipments.
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.
UPS Next Day Air
UPS Next Day Air Saver
UPS Next Day Air Early
Domestic Express Plus
Domestic Express
Domestic Midday
Domestic Express Saver
UPS Worldwide Express Plus
UPS Worldwide Express
UPS Worldwide Express NA1
UPS Worldwide Express Saver
UPS Worldwide Express Freight Midday
UPS Worldwide Express Freight
Transborder Express
Transborder Express Plus
Transborder Express Saver
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.
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:
USPS Cubic mail is only available to businesses that ship at least 50,000 packages annually.
Packages shipped with priority Cubic shipping have to weigh less than 20 pounds.
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 1–2
Zone 3–4
Zone 5–6
Zone 7–8
Zone 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:
Am I ready to expand my business but overwhelmed by international shipping procedures?
Do I have to turn away customers because I don’t want to deal with international shipping rules and regulations?
Um…is the process of shipping goods internationally really that different?
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.
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:
International shipping will take longer and cost more. Don’t waste time fighting it. Embrace it and find the best solution for your company.
Customs and duties, both in the originating country and the receiving country, are all forms of import/export taxes you can’t avoid.
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:
LOCATION
INTERNATIONAL SHIPPING?
Any one of the 50 US states
Nope (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 country
Yep (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:
Aerosols
Paint
Perfumes
Lithium batteries
Firearms
Alcohol
Cigarettes and tobacco products
Perishables
Poisonous chemicals
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:
A commercial invoice that includes specific descriptions and quantities of products, price, and harmonized code of each item
A packing list, which should include the commercial invoice number, the types of packaging, the net and gross weights of each package, package dimensions, visible markings, and buyer/seller references
Depending on where and what you’re shipping, you may also need a/an:
Electronic export information (EEI) filings (used for most countries if shipment value exceeds $2500)
Certificate of origin explaining where the commodity originated
Export license (if you are shipping a restricted product)
Insurance certificate
Inspection certificate
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:
USPS: You may not have thought of the US Postal Service as an international shipper because it’s an agency of the US government, but it is an independent government organization that offers four international shipping options. These range from Global Express Guarantee, which allows packages to arrive in one to three business days, down to First-Class International, where the number of days will vary by destination. USPS offers robust tracking and flat-rate shipping.
UPS: UPS also offers international shipping, and with higher packaging limits than USPS – packages can be up to 150 pounds compared to just 70 for USPS. Of course, more oversized items will come with higher charges. UPS also offers several shipping options and prices.
FedEx: FedEx ships to over 200 countries, with packages arriving between one and seven days, depending on service. Their max weight is similar to UPS.
DHL: Finally, DHL is more unique here. Its max parcel is just 44 pounds, much lower than the other options, and the service covers fewer countries. However, there are situations where going this route is the right move.
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.