As your business continues to grow, managing shipping will become more and more difficult. 

Getting more orders indicates that your business is on the right track. However, managing your orders and getting the best rates can be a time-consuming process.

Thankfully, some apps help you manage your shipping and orders effectively without sacrificing your precious time.

Tools We Recommend

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:

You need a solution that makes it possible to connect all of your eCommerce operations in one place

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

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

6. Aftership Returns Center

As frustrating as customer 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:

8. eHub – Best

There’s a lot that goes into managing shipping and customer orders. You have to keep track of inventory, calculate your shipping rates, print your labels, and so much more.

It can be time-consuming and frustrating to bounce from software to software to get all of this handled. You need a solution that makes it possible to connect all of your eCommerce operations in one place.

That’s where eHub comes in. From the admin, your business gets access to:

Essential Hub also integrates with more than 100+ e-commerce and shipping tools.

Pricing:

Conclusion

We hope you enjoy our list of the best apps you can use to manage your shipping. These tools should help save money on shipping and manage your orders effectively to delight your customers. To learn more about how Essential Hub can improve your shipping strategy, feel free to contact us.

You started out doing the shipping yourself. You loved putting products into packages and printing the labels because it represented all the hard work you’ve invested in starting your business.

Now, your online store is growing, and shipping has turned into a headache. It needs to be done every day, but your business has a lot of other needs, too.

If you’re currently evaluating whether you should expand your operations and hire someone to take over fulfillment, you may want to consider a third-party logistics provider (3PL) to do the job for you.

What is a Third-Party Logistics Provider (3PL)?

A 3PL is a logistics provider that allows you to outsource your fulfillment operations. The provider will handle various business activities for your company, such as:

Sooner or later, there will come a time when it will be necessary to enlist a 3PL (or expand operations to do it yourself). If you’re starting to run out of space or are shipping around 10-20 daily orders on your own, a 3PL can help you save time so you can focus on business.

It’s also an excellent investment if you’re looking to expand overseas or adapt to seasonal changes. Here’s what to consider to pick the 3PL that’s the right fit for your business.

Payment History and Financial Stability

When choosing a 3PL, consider what would happen if they were to shut down or go bankrupt suddenly. If you’re not ready, it could have brutal consequences for your business.

It’s always better to be safe than sorry, which is why you need to pick a 3PL with financial stability and a solid payment history. You’ll be saving yourself a lot of trouble in the long run.

Do your research and ask around to learn more about how they’ve handled payments in the past. If they have a history of not being reliable, then it’s best to move on and find a better partner to fit your needs.

Excellent Industry References

Not all 3PLs are created equal. You’ll also have to find out what others in the industry say about their services, along with strong financial stability.

One of your goals during your research should be to network with their existing customers and get their opinions on the 3PL. Here are some questions you can ask them to learn more about how the logistics provider does business:

Technology Integrations

There’s plenty of technology that helps you manage your supply chain easier. A quality 3PL should be able to integrate tools that give access to automation, connect with major carriers, and help you get the best rates.

Look at the 3PL’s website and see which e-commerce integrations are possible when you work with them. They should be able to integrate with the best platforms, such as:

Their Industry and Area Specialization

Specialty is key to finding the perfect 3PL. The right 3PL for your business depends on your location, the type of products you sell, and your current logistical needs.

For example, let’s say that you’re selling high-tariff items such as consumer goods and luggage. An option to consider is cross-border fulfillment, which is perfectly legal if you sell items with a 15+ tax rate.

Another aspect to consider is the 3PL’s location. Thanks to Amazon, customers expect to receive their products as soon as possible. As a result, it may be better to choose a 3PL that’s close to your customers. That will save you on shipping costs and keep delivery times to a minimum.

You can save on shipping costs by using one in the middle of the country or close to the region where you make the most sales. Larger 3PLs will have multiple locations you can leverage to cover the entire country.

A Strong Business Relationship

Collaborating with a 3PL is different from other traditional businesses. They are crucial in growing your business and effectively getting your product into customers’ hands.

To build a strong relationship with the 3PL, you want to know exactly what you need. Outlining your goals to the logistics provider will help set clear expectations that will lead the way to a solid partnership.

This should include:

    1. Expected level of service – how fast do things get out the door?
    2. Accuracy levels – sometimes, they ship the wrong product.
    3. Cost to ship each package (with a breakdown for different SKUs)
    4. How do they handle returns?

3PLs are notorious for being bad at handling returns. Have a frank discussion with any potential vendors so that you understand what they’re willing to do (and not do). Some will do it (for a price), but there are many with piles of unsorted returns sitting in their warehouse.

Scalability

Each company’s goal should be to grow and eventually reach a global market.

As your company starts to scale, its needs will change over time. You must consider what happens as you grow in SKUs and regions and hire more employees.

The right 3PL will fuel that growth and help you take your business to the next level. For example, the holidays are a period that significantly influences the supply and demand of your products.

A high-performing 3PL should also help you adapt to unexpected events. In the case of a natural disaster, you want to ensure they know how to handle the crisis and minimize the damage to your business.

When you meet up with a potential 3PL partner, ask them what their primary strategy is for scalability. It’ll show you if they’re worth the investment or not.

Pricing and Budget

Lastly, you’ll have to factor in your current budget. Investing in a 3PL can be costly, but it’s not a reason to go after the cheapest option.

As mentioned in this blog post, investing in the right 3PL helps you scale and grow your reach. A cheap 3PL is useless if it can’t adapt to unexpected situations and loses you money in the long term.

Many 3PLs will charge a flat fee, while others will charge variable pricing depending on your product type. Let’s take a look at an example:

You’re a clothing company with a high SKU that ships lightboxes. If your 3PL charges companies based on their SKUs, you will get charged more.

When checking out 3PLs, comparing pricing is just as important. Here are some questions that you should be asking the 3PL:

At the end of the day, what matters is your return on investment. Partnering with a third-party fulfillment company can save you time and reduce labor costs at a significant price.

Wrapping Things Up

It takes a lot of time and research to find the 3PL that’s the right fit for your business. With these seven things to consider, you should have a clear idea of what to look for and find the best for you.

eHub manages a network of 3PLs with our technology. If you’re considering a 3PL for your fulfillment needs, we can help you find the right one for you.

As frustrating as returns can be, managing them is an inevitable part of an e-commerce business. 30% of online products are returned, compared to only 8% for brick-and-mortar stores.

While dealing with customer returns might not be fun. However, it’s still possible to manage and minimize them effectively. Sometimes, you can flip them around and turn them into a sale.

While you may hate them, customers expect the returns process to be painless.

In this blog post, we’ll cover six ways that stores can manage returns effectively and improve their business:

Make Your Returns Policy Easy to Access and Lenient

More than 60% of customers will read your return policy before purchasing. That’s why you want to ensure your return policy is clear and easy to find on your web store.

The best places we recommend to make your returns policy visible include:

Another good tactic is to be generous and extend the deadline for returns. This works because it gives customers peace of mind and ample time to see if the item fits.

For example, Zappos is a top-leading brand that offers returns within 365 days of purchase. With so much time to test out the product and return it, customers may even forget to return the item in the first place!

Collect Data on Customer Returns Through Surveys

One of the best ways to prevent returns is to understand why customers are returning your items in the first place. One way to collect this information is through customer surveys.

With surveys, customers will have to go through a series of questions so you can understand the reason behind their return. Some of the best questions you can ask in the survey include:

As Bill Gates said himself, “An unhappy customer is the best customer.” Once you understand why customers are returning their orders, you can improve your products and web store.

For example, if a specific item always comes back faulty, you can find ways to fix it. Maybe it’s a flaw in the design, or the item’s packaging isn’t strong enough to sustain the transportation to the customer.

Maybe there’s a line in the product detail that is misleading customers. Understanding their expectations allows you to communicate more effectively in the first place or improve what you’re delivering.

If customers complain that your product looks bigger on your website than in real life, you can focus on improving your images to reflect the actual size of the item.

One of the best ways to prevent returns is to understand why customers are returning your items in the first place

Offer Product Recommendations to Customers

Even if a customer decides to return your item, it doesn’t mean that they won’t ever buy from you again. It could just be that they’re looking for a different product to meet their needs instead.

Especially for clothing or fashion-related items, customers want to see how they look and fit in person. If the returns process is easy, then they will continue to try out different products until they find what they like. Then you’ve got a lifetime customer!

What you can do in this situation is to offer them suggestions for other products that might interest them. If they’ve bought from you before, you can look at their history and see which type of item they typically like.

To take it a step further, you can also offer them redeemable coupons they can use on future purchases. It’s a great tactic to get them to return to your store and eventually buy products from you.

Measure How Much Your Returns Are Costing Your Store

As you manage returns, you must take the time to measure how they’re affecting your revenue. Doing so will help you set up a strategy to minimize them and do better.

Here are some crucial questions you need to be asking yourself:

Make the Return Process Simple and Convenient

How your brand manages returns could make or break your customer relationship. 92% of buyers will shop at your store again if the returns process is fast and straightforward.

For example, you can add a prepaid return label on packages to make the process less frustrating for the customer. You can also give customers a tracking number that lets them know when you receive the item.

Another way to make the returns process worry-free for the customer is to make your order policy straight to the point. Avoid complicated terms, disclose return fees, and set clear expectations between you and the customer.

There are tools you can use that simplify managing returns, which we’ll get into below.

Manage Your Returns With a Shipping Tool

Managing returns isn’t an easy task. Plus, you likely have other priorities in mind for your business, such as marketing your product or optimizing your website. It doesn’t hurt to get a bit of help along the way.

To save you time, various return management tools make the job easier for you. Some of the best tools we recommend on Shopify include:

Conclusion

Returns are part of shopping online. Making it easy will create a more positive customer experience and boost your retention of new customers. Managing them can be a headache, but setting clear policies and effective back-end processes will make them painless. With the right strategy, you can make returns just another selling point for your business!

It’s no secret that customers love free shipping.

91% of them are ready to leave an eCommerce store if they don’t offer free shipping during checkout. It’s a business tactic used by top brands such as Target, Adidas, H&M, and more.

However, don’t let the word ‘free’ fool you — there are cases where free shipping might cause you to lose more money than you’re gaining. Remember that you’ll have to cover the shipping cost, which may hurt your total revenue.

So what do you do? In this blog post, you’ll learn about the benefits of free shipping, what to consider before setting it up in your store, and the tactics that can turn losses into additional sales for your business.

The Benefits of Free Shipping

There’s a reason why offering free shipping is a gold standard in the eCommerce world. Here’s how free shipping influences the purchasing behavior of customers:

Free Shipping Boosts Your Sales and Average Order Value

Everybody loves to get free stuff, and free shipping is no different. According to statistics:

Increase Your Brand Loyalty

Your success in eCommerce depends on your ability to adapt.

Free shipping from brands is now an expectation for the modern customer. A recent survey proves that 8 out of 10 consumers prefer free shipping over getting their items faster.

By offering free shipping, you meet your customers’ needs and give them a reason to return for more.

Decrease Cart Abandonment

Put yourself in the shoes of the customer for a couple of seconds.

Let’s say that you find a product you like and add it to your cart, only to find out about the high shipping rates. What would you do? Chances are, you’d likely leave the cart.

That’s where free shipping comes in. By covering the shipping cost yourself, you’ll encourage customers to follow through and reduce cart abandonment.

What to Consider Before Offering Free Shipping

With that in mind, however, there are cases where free shipping isn’t the right fit for your business. Here are a couple of factors you need to consider before setting up free shipping on your store:

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, it’s ideal to offer free shipping to your customers. In this case, it won’t be fair to charge them for shipping costs.

However, if they don’t offer free shipping, it’s up to you to decide whether you want to cover the shipping costs or 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 else. 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 Customer’s 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 areas.

You’ve Calculated Your Profit Margins

First, you’ll have to do some math to determine if free shipping suits your store.

How free shipping will affect your margins depends on the type of product, where your customers are, and more factors. Keep in mind as well that you’re the one who’s going to have to cover the shipping costs.

Knowing the average order value and average margin on every order will determine if free shipping can work for your business. Does the average order cost you $10 to ship? If your average order margin is more significant than $10, you can cover the cost of shipping.

To compensate for the lost money, you’ll have to develop an effective strategy, which we’ll get into later. You can also keep your shipping expenses down by investing in the right software.

How to Offer Free Shipping Without Hurting Your Bottom Line

As you can see, there’s a lot of thinking that goes into offering free shipping. You can’t just set it up in your store and hope for the best. Thankfully, there are strategies you can use to offer free shipping without going broke. Here are a couple of tactics that should help you:

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

Increase the Price of Your Products

An excellent way to win back the money you’re losing to shipping is to increase the price of your products.

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

Customers find free shipping offers twice as compelling as discounts, so consider that when considering a lower price versus a free shipping offer.

Offer Free Shipping for a Minimum Order Size

Another way to cover shipping costs is to offer free shipping when customers pay a specific order size. The extra cash should help you cover the rest of the shipping costs.

However, just like with increasing the price of your products, you need to have a strategy in mind. You can’t just throw a random number around — customers will catch on to your actions.

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

Here’s an example from skincare company Frank Body, that offers free shipping for orders above $20:

Create a Membership Program for Free Shipping

An option that’s gaining in popularity is setting up membership programs. To qualify for free shipping, customers must sign up and pay a yearly or monthly fee.

A great example of this in action is Barnes & Noble. On top of getting free shipping when customers sign up for their membership program, they also get exclusive perks and bonuses.

 

Offer Multiple Shipping Options at Checkout

Giving customers more than one option will increase their perceived value. When you display rates, include the estimated delivery date. Customers will be able to select a faster option (and choose to pay for shipping themselves) versus selecting the standard, slowest, and low-cost option for your business.

Your Shipping Rates are As Low as Possible

No doubt, getting access to cheaper rates makes offering free shipping easier. The problem is that small and mid-sized businesses can’t access the same discounts as their bigger competitors – or Amazon. A lot of platforms promise better rates, but what they’re really offering is a discount below retail (what you would get at the USPS or UPS store). Any business can access better than retail by setting up a business shipping account.

More tools are available, however, and that’s where a company like Essential Hub can help. We leverage our network of software partners to get customers the best rate and program for their particular needs, and our experts craft a custom shipping profile to leverage the strengths of each carrier. Check out some of our shipping tips, and if you’d like to learn more about how we can help, fill out the contact form below.

Wrapping Things Up

Whether or not you can offer free shipping depends on various factors. These include the type of product you’re shipping, your customer’s location, and what others are doing in your industry.

When free shipping is done correctly, you can boost sales and create loyal customers. It’s all about having the right strategy to make it work.

Keep Your Costs at a Minimum with a Great Shipping Program

Shipping is more than just low rates. An excellent shipping program gets you the best rates for the service you need for each and every shipment. Essential Hub helps our customers with strategy, software, and rates so their business can win more customers and grow!

Introduction

Delivery is one of the most critical steps for customers trying to purchase your products. How are you handling it?

It’s what can determine whether a customer will buy from you again or not. A poor delivery not only makes you lose customers but gives a big hit to your brand’s reputation as well.

It’s also where you’ll need to assess your shipping costs. You want to ensure your item arrives at your customer’s doorstep without losing too much money on shipping.

So, to help you out, here are our top 11 tactics you can use to boost your shipping strategy and delight customers:

  1. Offer Free Shipping Without Hurting Your Profits Margins
  2. Make Your Order and Return Policies Clear
  3. Flat Rate Shipping
  4. Table Rate Shipping
  5. Use Email Marketing During Delivery
  6. Offer Same Day Delivery
  7. Show Customers How Close They Are to Free Shipping
  8. Get Insurance for Your Items
  9. Give Customers Tracking Information
  10. Create an Incredible Unboxing Experience
  11. Invest in Shipping Software

1. Offer Free Shipping Without Hurting Your Profit Margins

Free shipping is an effective way to boost sales. 93% of customers are likelier to buy if free shipping is available.

The issue with free shipping is that it isn’t exactly “free” — you’ll have to cover shipping costs, making you lose money. Shipping can also get expensive if you’re sending items overseas.

Here are the two main ways you can offer free shipping without breaking the bank:

● Increase the product price: Raising the price of the costs of your items will help you squeeze in cash to pay for shipping.

● Offer free shipping for minimum orders: For example, you can provide free shipping for orders above $20.

2. Make Your Order and Returns Policy Clear

Your store needs a concise order policy that sets clear expectations between you and your customers.

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

Here are some questions that your shipping policy should cover:

● Which countries do you ship to, and which do you not?

● What shipping method do you use?

● Do customers get access to shipping tracking information?

● Can customers pick up your item at a physical location?

● What is the procedure and deadline for refunds?

Are you using Shopify? Learn more about setting up your order and returns policy on Shopify here.

3. Flat Rate Shipping

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 charge 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.

4. Table Rate Shipping

Table rate shipping, on the other hand, is the opposite of flat rates. It consists of determining shipping costs based on various criteria.

These factors include product size, weight, shipping destination, and value. Here’s an example of what it could be like if you charge shipping based on weight:

Product WeightShipping Price
1 — 5 LBS$3
5 — 10 LBS$6
10 — 15 LBS$12
15 — 20 LBS$24

5. Use Email Marketing During Delivery

Once the item gets shipped out, it’s an excellent time to engage customers via email.

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:

Dollar Shave club follow-up email

It is especially important to maintain communication with customers throughout the order and delivery process. Many customers will visit your website once to order a product but open your email confirmation to click on tracking several times.

6. Offer Same Day Delivery

Offering same-day delivery can make you stand out from other stores and win extra sales. 61% of customers are willing to pay a few extra bucks to get their products shipped the same day.

Now, why does same-day delivery work so well?

Because of modern technology, our attention span and patience are progressively reducing. We are used to getting things fast, and customers expect the same with their orders.

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

Offering Same Day Delivery

When offering same-day delivery, you need to measure how it’s impacting your sales. There are a ton of startups out there offering same-day delivery services. A simple Google Search will reveal some in your area.

7. Show Customers How Close They Are to Free Shipping

One way to encourage customers to buy more is to show how close they are to getting free shipping. By knowing how much they need to qualify, they’re more likely to add a couple of extra items to the cart.

A great app that helps you do this is Free Shipping Bar. 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.

8. Get Insurance for your 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 on items up to $100.

You can add insurance automatically through your carrier contracts (they include it in your cost), or you can offer it to your customers at checkout using a product like Route.

9. Give Customers Tracking Information

One way to improve the buyer experience is by giving customers tracking information on their orders. It’ll help you avoid repetitive questions like “where is my package?”.

With tracking information, you’ll reduce complaints and drive better customer satisfaction. To track packages efficiently, you can use Shopify apps such as Tracktor.

10. Create An Incredible Unboxing Experience

Your goal as an online store should always be to stand out from the crowd. One excellent way to do this is to make opening your packages memorable every time.

A memorable unboxing experience increases brand awareness and loyalty. Customers are much more likely to refer your product to their friends once they’ve received it. Making your brand stand out makes you much more likely to be talked about by your new brand-evangelists!

Here are some ideas of how you can do this:

● Make your packaging material branded or unique. Whatever you use as filler to protect the contents can be colorful and wow your customer.

● Provide a custom thank you. A simple note with the customer’s name, even hand-written and signed, goes a long way to improving customer retention.

● Give a free sample. Do you have other products that make sense to give away? These can act like a simple gift showing off your additional products.

● Include discount codes or special offers. Give them a reason to revisit your website!

● Add branded stickers inside and out.

● Focus on creating epic packaging, like this from nuts.com:

Nuts.com crazy packaging

Notice how they’re not afraid to showcase their personality on their packaging: “Nuts! Nuts! Nuts!”, “We’re all nuts!” etc. It’s a great way to spice up the delivery process.

11. Invest in Shipping Software

There are a lot of tasks that go into shipping tactics: fulfilling orders, managing returns, getting tracking information, etc. It can feel quite overwhelming at times, especially if you’re starting out.

That’s why it’s best to get shipping software that cuts the work in half. At EHub, we connect all of your eCommerce operations in one place. The platform comes with:

● The best discounts on shipping

● eCommerce integrations for all your channels

● Insurance for every delivery

● Order tracking

Make sure you’re getting the most out of your shipping software. With technology, you can simplify your packing and label printing processes to get packages out the door as fast and accurately as possible – with the desired carrier service at the best price.

Wrapping Things Up

Managing your delivery effectively is vital to retain customers and make them come back to your store. Now, it’s up to you to test one of these tactics and see what works best for your business! To learn more about how Essential Hub’s solutions can boost your store’s shipping strategy, contact us below and find out how we can turn shipping into one of your most significant assets.

UPS and FedEx love to advertise their low carrier charges, hoping to draw in business from e-commerce companies who are none the wiser about a range of additional surcharges and accessorial fees.

Your e-commerce business needs full transparency to minimize shipping expenses. That’s why we’ve compiled this list you need to know about:

5 Dirty Little Secrets:

  1. UPS: A 4.9% Overall Increase in Price for 2020
  2. Hiding Accessorial Fees
  3. Residential Delivery Surcharges
  4. The Cost of Handling Weight
  5. USPS – Cubic Pricing and Potential Savings

For example, research shows that 23,223 of the 41,702 ZIP Codes in the US are being impacted by Delivery Area Surcharges. It equates to over 55% of the country, while 25% of the US population is affected.

This can translate to thousands of dollars in extra fees, which is why you’ll need to pay attention to the small print and not the seductive prices offered by the likes of UPS and FedEx as they aim to get your business in the door.

Accessorial fees are a significant part of the business model for most carriers, so the United States Postal Service (USPS) is often the most economical option if you send packages frequently.

Here are five dirty secrets about accessorial fees and why USPS could solve your eCommerce shipping needs.

1. UPS: A 4.9% Overall Increase in Price for 2020

2020 has been a challenging year for businesses, but there’s been no respite if e-commerce is your model for making money.

UPS announced an average rate increase of 4.9%, effective in December 2019.

FedEx has also recently increased its fees and went a step further by “implementing a temporary surcharge on all FedEx and TNT international parcel and freight shipments beginning April 6” in response to the COVID-19 crisis.

It’s worth remembering that there will always be discrepancies depending on the circumstances of your business, so you could end up paying much more than you’re used to.

They may cite margins and higher costs as reasons for increased fees each year, but there are also numerous surcharges to consider first.

2. Hiding Accessorial Fees

UPS and FedEx make a point of making accessorial fees challenging to understand, and they keep them hidden away in the small print.

Eating up the costs is an accepted part of doing business, but you don’t necessarily have to pay for a service that tacks on more charges than your average budget airline.

Most importantly, you’ll need to work out any additional costs as soon as possible, and they add up more quickly than you might expect.

3. Residential Delivery Surcharges

Residential delivery surcharges are often the most egregious example of accessorial fees.

Let’s say you need to ship a small package to a residential address, as many e-commerce businesses do daily, to multiple homes. As well as the advertised price, a $4.40 ‘residential delivery surcharge’ will be tacked on by FedEx, eating into profit margins that sit at roughly 40% for the best-run companies.

For eCommerce businesses, most packages will likely be sent to residential addresses, while B2B deliveries come with their own set of separate surcharges.

The USPS Flat Rate is an excellent option if you’d prefer to pay a simple set fee with no extra surcharges. Prices start at $7.50, and they have discounted rates for business customers.

4. The Cost of Handling Weight

Everything from package weight to fuel consumption is becoming more expensive for e-commerce businesses that rely on shipping services to get their products to customers.

The UPS Additional Handling – Weight charge is now applied from 50lb rather than 70lb and comes in at $24 per instance. It’ll start to add up quickly if you’re sending heavier items regularly and can eat into your profit margins if you’re not careful.

UPS has also introduced four additional new surcharges for 2020;

● C.O.D

● Signature Required

● Additional Handling

● Peak Additional Handling

Alternatively, the USPS Flat Rate will allow you to ship packages up to 70lb to any state at the same price, which is ideal for smaller, heavier items.

5. USPS – Cubic Pricing and Potential Savings

USPS Cubic Pricing is possibly the best kept secret of all if you’re hoping to lower shipping costs.

High-volume customers can access discounted rates, while it works by calculating the length, width, and height of your package. They offer five tiers depending on the overall cubic size, and it often works out to be cheaper than FedEx, UPS, or even USPS Priority Mail.

For example, a Tier 3 (8” x 6” x 8”) package shipped to Zone 6 would incur a delivery charge of $22.47 if you’re using Priority Mail Commercial Base rates. It drops to just $10.98 with USPS Cubic Pricing, working out as a saving of 51%.

In an ideal world, competition between UPS and FedEx would lead to lower prices and improved services. Instead, they have a stranglehold on much of the market, and they’re not necessarily the most economical choice when you factor in the multiple accessorial fees that are inevitably attached.

As mentioned, you won’t have to deal with residential delivery fees with the USPS, and their flat rates are easy to understand. A competitive shipping program should utilize the advantages of each carrier’s strengths and minimize their weaknesses. You should not be using a single carrier, even if you’re only shipping one product.

Ensure your software can handle multiple carriers to maximize your savings on every shipment you send out the door. The best part is you don’t have to do this alone. With a partner like Essential Hub, you get a competitive shipping program tailored to your needs. Find out how today!