Shipping is a vital component in any company, whether it is a small or big one. But first you need to learn and understand how your shipping and fulfillment rates are measured before setting up shipping costs and processes within your business.
Shipping costs are measured according to operation and velocity, length, destination and amount of shipment. Shipping service and speed means the delivery time and shipping choices. Consumers want quicker delivery which is why the higher the cost or price would be, the more you speed up a shipping service.
Second thing to remember is the size and weight of the shipped goods. Dimensional weight means the size of the item, instead of the actual weight. A consumer would, of course, be paying less for lighter parcels but more on the heavier parcels.
The final aspect affecting the cost of shipping is the difference between the address of the shipper and the address of the recipient. There are a few things to consider if you’re exporting goods to foreign destinations.
Firstly, confirm the shippability of the product. This is due to some of the limitations on other goods from certain countries. Make sure that the product you are supplying to that specific country or destination is permitted.
Second, extra fees, customs duties and records. Additional charges and provisions such as value added tax, duties and tariffs, and customs declarations are also to be agreed.
Finally, don’t forget to change your pricing and shipping policies. Selling abroad is costly so ensure that appropriate steps are taken to charge and estimate your customers for distribution in international areas.
Another thing you need to handle is the amount of your shipments. You may develop a good relationship with your carrier account manager when you are starting your business. Doing so will profit both of you as shipping discounts on your company.