May 21, 2021 | 3PL Warehouse Management, Best Practices, Blog, Fulfillment, Warehouse Management Software
Ecommerce shipping is a key link of the supply chain that can make or break your business. Think that’s a bit of an overstatement? Well, last-mile delivery is recorded as the most costly part of the order fulfillment process – it’s one of the most pressing logistical challenges. Moreover, if order inaccuracies occur, and items are shipped to the wrong location, then have to face the additional costs of returns and refunds.
This is why it’s so important to optimize the shipping process. You need to cut down labor costs, transit times, fuel costs, and establish a seamless workflow. Easier said than done, though, right?
In this article, we’re going to take a look at how you can optimize the shipping process from different angles. Questions such as how much to charge your customers, what sort of hits your business should absorb, how to protect your own investment, and which data-driven tools to use, will be addressed and answered.
What is ecommerce shipping?
Shipping is a vital part of the order fulfillment process for ecommerce merchants. It consists of order receiving, order processing, and order fulfillment.
Fulfillment starts as soon as your customer hits the checkout button on the ecommerce platforms and purchases the products in their shopping cart. Once the site confirms the order, the chain moves forward. Small-scale ecommerce stores often store their inventory in their garages. At the same time, as you go up the scale, vendors usually employ the services of inventory storage facilities and warehouses. Upon confirming the purchase, service providers package, label, and ship the products to the destination address.
Shipping can be pretty challenging to handle on your own, especially if you have a growing business. This is the point where third-party logistics companies can be of big help. They optimize the fulfillment process and cater to your needs, and even help you minimize logistics costs. Various companies have different shipping policies and shipping rates, such as Amazon Prime, which offers overnight shipping.
ut not every business can pull this off. This is why your company’s shipping policy should be based on a combination of your budget and your customers’ needs.
What to keep in mind when shipping
There are many factors that ecommerce merchants have to account for when it comes to shipping. All the seemingly small details contribute to your overall shipping costs and total transit times. These factors ultimately determine customer satisfaction and directly impact your business’s reputation and future growth. Since your company’s ecommerce shipping strategy is so important, it’s worth investing time and resources to conduct proper research. Here are some of the best practices that online stores employ for shipping, to help you decide which one may suit your business best.
Offer Free Shipping
An effective way to reduce shopping cart abandonment is to provide some incentive to your customers. Companies usually use discounts and coupons to their customers for this purpose. Offering free shipping to your customers makes them feel more comfortable about placing an order.
Contrary to what the name might suggest, free shipping isn’t actually free. Either you take the hit and pay for the fees outright, or the fee is absorbed in a way that customers pay for it. You can do this by incorporating shipping costs into the sale price of your products. This way, you can offer free shipping without compromising on your own profits.
Charge Real-Time Carrier Rates
Another popular shipping strategy among online vendors is charging real-time carrier rates. This process is transparent and gives your customers a little wiggle room. How? Well, let’s say you partner up with multiple carriers. You can now let customers pick and choose the shipping option that best suits their need.
Shipping labels like FedEx, USPS, and DHL have different shipping costs, and no one carrier offers lower rates across the board – the pricing depends on numerous factors. Ecommerce platforms such as Shopify integrate real-time shipping rates of these carriers into their dashboard so that they are easy to handle. Customers can then choose what works for them, whether it is overnight shipping, two-day shipping, or flat-rate mail.
Charge a Flat Rate
If you don’t want the hassle of calculating shipping prices for each package, then flat-rate shipping is another reliable option. As the name suggests, this shipping option charges a single rate for each shipping order, regardless of the size or nature of the product.
This option is most suitable for businesses that sell a small variety of products with similar dimensions and weights. However, be sure not to set a very high flat rate for the items- it might scare away the customers. Postal services like USPS usually have several flat-rate shipping options.
Offer local delivery
If your customer base is near to your inventory storage facility, then offering local delivery is one way to go. Keep in mind, though, that this only works for local customers. You can set up the local delivery zone through the use of zip codes – customers within this area qualify as local customers.
Suppose you are catering to a large customer base outside your local area. In that case, you can still offer the local customers this option by putting an appropriate button at the checkout. The local delivery option can be set to be free of charge or at a low flat rate, depending on your budget. This option is best for strengthening your local customer base.
How to calculate shipping costs
An essential part of devising your shipping strategy is determining your shipping costs. If you partner up with a shipping label, couriers base their shipping rates on a number of factors. These factors range from the package weight and size to the origin and destination address. The bigger the product is and the farther away you have to send it, the more you’ll typically end up paying for shipping.
Before settling on your company’s shipping rates, be sure to assess the following factors.
Consider your margins
One thing ecommerce merchants should focus on is their profit margins- they determine the success of your business. Shipping fees are a significant part of the total fulfillment expenses- deal with them improperly, and you could end up losing money. Before you set up the total price of a product, consider all the little expenses like shipping costs, credit card fees, and packaging, in addition to the cost of the product. Your sale price should leave room for profit after taking care of all of these expenses.
Packaging and marketing
From a historical perspective, packaging and shipping were just ways to get the products to the customer. The up-gradation of technology and the evolution of business strategies have now transformed packaging and shipping into a marketing opportunity. And why not – telling your brands’ story with your product packaging and creating a memorable unboxing experience is a brilliant opportunity.
Packaging inserts and other items could take the whole experience up a notch when the customer unpacks their order- think of unboxing videos online and the publicity they gather! Of course, this type of marketing is another shipping expense and would add to the total costs.
Packaging options
While you can utilize packaging for marketing purposes, don’t lose sight of its original purpose – the package still has to securely hold all the goods. Of course, the safety level for each product depends on its nature. For example, you can ship sweaters and other clothing items in poly mailers, and they would be secure. But for fragile items with higher value, you might need to invest in sturdy boxes and maybe even packing peanuts.
While the nature and size of the product help determine your packaging needs, your customers’ values and preferences also need to be accounted for. Eco-friendly packaging options are often pricier than the standard options, but they appeal to the growing number of eco-conscious consumers. This is why it pays to at least provide eco-friendly packaging as an option to customers.
Insurance and tracking
Insurance and tracking help increase customer loyalty among online shoppers. They help secure your products and provide you with a safety net in case of any mishap. Shipping labels often provide relatively inexpensive or even free options for insurance and tracking. Like UPS and USPS Priority Mail, some carriers offer free coverage for mail orders above a specific price limit.
Customs declaration and forms
International shipping requires proper customs documentation that details the nature and the size of the shipment. More often than not, international shipping also comes with specific regulations and tariffs. Of course, these fees add up to the total shipping cost. Suppose you are catering to a global customer base. In that case, it’s wise to set your shipping policy so that it includes these costs. If you let the customer know of the customs fee beforehand, they won’t be surprised at the unexpected charges once they receive the parcel.
Should you offer free shipping?
Now that you have an idea of what constitutes the shipping expenditures, the next step is to determine whether to offer free shipping or not. Free shipping options are attractive to customers and directly impact conversion rates, but can your business afford to eat the costs and offer them? Well, several factors determine the feasibility of this decision.
The most important factor to consider is your company’s available budget and revenue. If your profit margins are high, offering free shipping probably won’t hurt you. Moreover, package dimensions, and the destination’s zonal distance are also factors to consider. Don’t forget to further account for the shipping rates of the shipping company you have partnered up with.
So far, we have discussed costs on the business owner’s end. Your customers are another critical determinant of your decision to offer free shipping. For example, if your target audience isn’t really interested in free shipping, then you won’t have to offer it in the first place. Of course, you can only determine how important free shipping is to them after doing some A/B testing. To sum things up, every company’s needs are different. As such, their decision to offer free shipping may vary.
How to Offer Free Shipping without Reducing Profits
Offering free shipping to your customers might not be feasible for every business. Sometimes, you end up losing more money than you make by taking this route. So, how can you realistically offer free shipping without breaking the bank?
Here are some pointers:
Decide if shipping is a marketing expense or COGS
If you want to offer free shipping, first determine how it affects your business. As stated earlier, you can utilize shipping as a marketing opportunity. If so, then free shipping expenses can be considered as marketing expenses. This is a profitable investment if it drives your sales up.
If free shipping isn’t doing much for your sales though, then the shipping costs might be an addition to the Cost of Goods Sold (COGS), and you may need to adjust your sale prices accordingly. Of course, new businesses might realize that this is more of a hit and trial procedure. You will have to test it first to determine whether the shipping expenses are a marketing expense or COGS.
Offer free shipping to limited shipping zones
One way to realistically offer free shipping is to limit the free shipping to specific zip codes and areas. For example, a US-based business might offer domestic free shipping. Still, since shipping to other countries like Canada and Australia comes with tariffs and customs fees, the free shipping offer might not extend to those countries. Shipping carriers base their rates on the zonal distance of the shipment, so it might be expensive to offer free shipping to far-flung areas. The point is to establish your free shipping policy on your carrier’s shipping rates and limit free shipping to nearby areas.
Surcharge your expedited rates
To offset your free shipping expenses, you can increase the rates of expedited shipping. This only works if your expedited shipping option is attractive enough. As an example, between free shipping with 10-day transit time and expedited shipping with 2-day transit time, chances are both options will attract a fair share of customers. So, you’ll be able to offer free shipping to the customers by surcharging the expedited shipping rates.
Offer free shipping with a minimum purchase amount
Setting a shopping threshold for free shipping is among the best practices employed by eCommerce platforms that offer free shipping. Amazon Prime is such an example. The logic behind it is simple enough. Customers must have a fair number of products in their carts before they can avail free shipping. The profit margin from the sold goods covers the free shipping expenses.
Ecommerce shipping FAQs
How do ecommerce sites calculate shipping?
Ecommerce sites like Shopify have integrations or built-in shipping cost calculators that determine the total shipping costs based on several factors. These include the shipping partner, package dimensions and weight, the zonal distance between the point of origin and the destination, and the transit time.
How is shipping calculated?
You can calculate the total cost of shipping through several determinants – some companies use shipping software for these calculations. These shipping costs include packaging fees, transit fees, and in the case of international shipment, tariffs and customs fees. The transit fees depend on the carrier rates that differ for normal, flat-rate, and expedited shipping options.
How does ecommerce delivery work?
Ecommerce stores either go for self-fulfillment or employ the services of a third-party logistics company. In the latter case, the fulfillment partner handles shipping by teaming up with different couriers. Once the eCommerce store confirms the order, the fulfillment partner sources the product from an inventory storage facility, packs it, and sends it out for shipping. The courier then ships the product to the destination.
What is the cheapest way to ship for a small business?
The cheapest shipping option for a small business is the mail service. USPS is a great shipping carrier with affordable rates. If you want to cut down on the transit time, you could partner up with a third-party logistics company-they also sometimes offer discounts.
Let ShipHero handle shipping for you
ShipHero is a powerful warehouse management solution that seamlessly integrates with your online store and handles warehousing and shipping for you. Shopify merchants can add ShipHero to their existing store on the platform; it is the #1 Warehouse Manager Software on the Shopify app store. ShipHero integrates seamlessly with major ecommerce platforms such as eBay, Amazon, Shopify, and more.
ShipHero aligns its goals with your own, to ensure that your customers are receiving the best services.
Reduced shipping costs
With ShipHero, you can enjoy great discounts on shipping rates from our partner carriers. The ShipHero integration on your online store dashboard lets you compare the shipping rates of different carriers like UPS, USPS, and FedEx. You can then determine which option works the best for you and eliminate the chances of overpaying for shipping. The fulfillment software allows you to save on shipping costs by identifying orders that you can merge. Furthermore, our algorithm picks out the fastest shipping routes, saving both on transit times and shipping costs.
Ecommerce integrations
ShipHero’s eCommerce integrations make the whole order fulfillment process a breeze. ShipHero’s mobile app lets you manage your operations from anywhere- you can track the inventory movement of your store in real-time. You can set rules to simplify packing and shipping tasks. Inventory synchronization and warehouse automation increase the efficiency of the supply chain – meaning that your customers ultimately receive their orders faster. Additionally, ShipHero sends order shipping confirmation and tracking data to customers when their orders are shipped, earning you the brownie points.
Reporting & analytics tools
You can access ShipHero’s premium reporting and analytics tools and use the data to enhance your brand’s growth strategy. The reporting tools give a comprehensive insight into shipment expenses, sales history, inventory stocks, cost of goods, and team performance. Essentially, it allows you to keep track of everything from one central place.
Ecommerce shipping is a vital part of the supply chain, and one of the most expensive stages too. To avoid hefty transit costs, delayed orders, and unhappy customers, optimizing the shipping process is vital. A powerful ecommerce shipping solution like ShipHero can help you meet your business goals and optimize your shipping process.
May 19, 2021 | Best Practices, Blog, Fulfillment, Warehouse Management Software
Effective supply chain management is vital for any business, big or small. Without the help of proven, efficient supply chain management strategies and practices, your company may suffer from poor workflows, high costs, unreliable order fulfillment, and major losses.
One of the most vital parts of the order fulfillment process is the pick and pack stage. If the pick and pack stage is not optimized, then a number of issues may arise. This includes order delays, order inaccuracies, delivery of damaged goods, and more.
So, to guarantee the success of your business operations, optimizing the pick and pack process is vital. This is easier said than done, and there is no single ‘right’ way to do it. Business owners must consider different strategies and methods, and determine which one suits their needs best.
What is pick and pack?
Pick and pack is a three-stage part of the supply chain management process. The process is pretty much exactly what the name suggests. Pick and pack involves the following:
- Receiving an order: Your warehouse system is connected to your online store sales page. So when a customer places an order, the warehouse system is notified and generates a packing slip.
- Picking the order: This part is done manually. A warehouse worker will take the generated slip and find the items listed from the warehouse. Different warehouses employ various inventory strategies to help ease this process by making it easier to find the items
- Packing the order: The order is now sent to a packing station, where it is packed using necessary equipment and the required documentation is placed alongside it. It is now ready for the delivery stage.
How does pick and pack work?
Pick and pack fulfillment can be done in many ways, depending on the warehouse. Here are the different methods of picking and packing.
Piece picking
This pick and pack strategy is most commonly employed by small businesses. It involves taking the packing slip of one individual order at a time as they come in for the pick and pack process.
Batch picking
In batch picking, different items from various orders are grouped together because of a common similarity. For example, if they are located close to each other in the warehouse. This method is used when there are many small orders to fulfill at one time and to do so, a pick and pack software is required. By grouping items together in this way, you save time for your order pickers. This is because they now only have to go to a designated place in the warehouse once to pick up an item that is required for several orders. Pack workers can then redistribute said items to the specific order during the packing process.
What are the Challenges to the Pick and Pack Process?
As with any part of the supply chain, the pick and pack process may face certain challenges. Below are some challenges that may come up.
Inaccurate inventory counts
An inaccurate inventory count can make it difficult to manage the pick and pack process. This is because an inaccurate count can lead to further problems such as scheduling errors. With an incorrect count, the inventory stock is incorrectly recorded, and shortages may occur when the orders are meant to be picked, causing order delays.
Inefficient warehouse layouts
An inefficient storage layout may negatively affect your turn-around time (TAT). TAT is the overall time it takes to pick orders and pack a customer’s order. If you have an unorganized warehouse, it is difficult to efficiently find the desired items as orders start to come in. This inevitably leads to delays.
Missing Product Information (or lack of integrations)
Inventory data is an essential factor when it comes to the pick and pack process. For example, in the picking process, inaccurate recording of the average number of lines per order or improper listings of complementary goods may cause problems to arise. This leads to order inaccuracies or order delays. Similarly, in the packing process, if factors such as the weight or fragility of the items are not recorded, then problems in the delivery process arise – such as customers receiving damaged goods.
How to Optimize the Pick and Pack Process
Here are some methods to help increase the efficiency of your pick and pack process:
Design Your Warehouse for Efficiency
There are ways to organize your warehouse facility that minimize your turnaround time. By performing an ABC analysis, which categorizes your inventory into 3 parts, based on factors such as sales, the most popular items can be made easier to access, quickly. Also, you can place items that are usually ordered together in the same place. This will be beneficial for your warehouse in long term, as it will not only increase the efficiency of the pick and pack process, but reduces operational costs too.
Keep Your Warehouse Well-Organized
A tidy work environment can make all the difference. This is especially true for warehouses. Make sure your warehouse is free of as much clutter as possible to avoid accidents or problems in maneuvering around the premises. Also, keep the packing station organized, with any and all supplies needed to pack different items for shipping.
Program Your WMS for Easy Picking
Your Warehouse Management System, or WHS, makes for easy picking, by listing the items of an order in terms of where they are located. This will reduce the time it takes to find a complete order, and is less manual work for a picker.
Double Check Each Order
Although technology is becoming increasingly efficient, you should still have a person assigned to double-check orders after they are picked, packed, and made ready for shipment. This will reduce the chances of mistakes occurring and corresponding needs for reshipment. Reshipment is pricey and decreases revenue, so the likelihood of it should be minimized.
Keep an Accurate Inventory Count
Having a detailed inventory organization system can make all the difference to your pick and pack process. For large companies especially, spreadsheets are not the best choice. They can get messy and complicated.
For accuracy, opt for barcodes and RFIDs. A perpetual inventory management system will also help – as it’s technology-enabled. A perpetual system keeps a record of stocked and sold items as they change, and continuously updates your accounting system when sales are made or new stocks are bought.
Start using ShipHero pick and pack warehouse fulfillment services
Warehouse fulfillment can be tricky to optimize. The goal for any business is to minimize labor costs, optimize quality control and order accuracy, and maximize customer satisfaction. E-commerce fulfillment can be difficult though, especially if you lack the right resources. This is where warehouse fulfillment companies can really help retailers grow their businesses.
ShipHero is a data-driven warehouse management system that optimizes workflows and even handles order fulfillment for you. Here’s how ShipHero helps optimize your business operations and logistics.
Distributed inventory
ShipHero provides users with a distributed inventory, which means that your inventory is divided up and stored at different storage facilities. This means that when a customer places an order in a specific area, the order is fulfilled and shipped from the nearest location, reducing delivery times and costs simultaneously.
Order management
ShipHero’s warehouse management platform optimizes order management through technology. The advanced software integrates effortlessly with your business systems and provides you with multiple customization options. Users can create custom workflows to cater to their business’s specific needs, and set automation rules to make the processes more efficient. When an order is placed, ShipHero’s system automatically assigns them to the nearest warehouse.
Done for you fulfillment
ShipHero has evolved into more than just a warehouse management system – we also offer efficient order fulfillment, just for you. For as little as $5.58, ShipHero will pick, pack and ship your orders. ShipHero’s order fulfillment is also especially reliable, thanks to our distributed inventory and network of fulfillment centers across the country. When orders are placed, the WMS has them routed to the nearest location, minimizing transit times, costs, and the possibility of order delays.
Bulk shipping discounts
ShipHero’s warehouse management solution comes with built-in shipping multicarrier shipping options and automated label generation and shipping quoting. The advanced software determines the cheapest shipping option for individual orders, making sure you always have the most cost-effective option.
Conclusion
Getting your pick and pack processes right can be tricky, but it’s well worth the time and effort. After all, the success of any ecommerce business comes down to happy customers, and efficient picking and packing are necessary to achieve this. Late orders, high shipping fees, and order inaccuracies won’t keep your customers coming back for more.
Effective warehouse management and the best pick and pack strategies can help improve your workflow and optimize the order fulfillment process, but this isn’t always enough. Sometimes, you need a third-party with a team of experts to handle the logistics while you focus on growing your business. This is where a warehouse management solution like ShipHero can help you out.
May 17, 2021 | Best Practices, Blog, Case Study, Fulfillment
Introduction
Masks are coming off and that means one thing… time to take care of your teeth again. Thankfully, the folks at BURST, a long-time ShipHero customer, are here with the affordable subscription service for oral care, championed by thousands of dental professionals across the USA.
BURST was co-founded by Hamish Khayat and Brittany Stewart in 2017, and in less than a year, they had already amassed hundreds of thousands of subscribers. It’s no exaggeration to say that they “BURST”’ onto the e-commerce scene. By the end of 2019, the company reported 100% year-over-year growth and a 140% increase in ‘BURST Ambassadors.’ These brand advocates, including dentists and hygienists across the country, now number more than 20,000 strong.
“Since switching to ShipHero, we’ve reduced our fully-loaded costs by 35%. At the volumes we move, that’s huge.” Brittany Stewart, President and COO, BURST
Fully-Loaded Cost means the direct cost of the applicable good, product or service plus indirect charges and overhead.
But as Brittany explains in our chat below, with meteoric growth comes challenges. Specifically, BURST’s 3PL partners were struggling to fulfill and ship orders at a breakneck pace that matched their growth.
Challenges
- Partnering with a 3PL to provide on-time shipping and fulfillment
- Ensuring the 3PL’s software can scale with 100% YoY growth
- Gaining order transparency to ensure BURST is able to deliver exceptional customer service
- Seamless integration with ShipHero APIs
- Fast and intuitive picking and packing capabilities for 3PL warehouse teams
- Visibility into order status for the customer experience team
- 100,000+ shipments per month
- Over 100% YoY growth w/ similar growth projected for the future
Brittany, what was your fulfillment process like BEFORE ShipHero?
Brittany Stewart: “We’re moving significant volumes—over a hundred thousand packages every single month. We’ve outgrown some 3PLs. The problem with most warehouses boiled down to their software capability—it wasn’t capable of scaling with our growth.
Honesty and transparency are so important in a 3PL partner. Issues are going to crop up—I just want to know about them. Our retention rate is directly tied to our ability to provide on-time fulfillment and unbelievable customer service. We can’t do that if we don’t know what’s going on.
We have a very close relationship with our fulfillment partner, Swoop. They started looking for a WMS that would help them scale with our growth. We tested out a lot of systems together, and nothing was quite as good as ShipHero”
Solution
ShipHero’s painless and intuitive warehouse management system. We also spoke with Brandon, the owner and CEO of Swoop (BURST’s 3PL provider).
Brandon, what has been your experience with ShipHero?
Brandon: “ShipHero has exceeded all expectations. For a lot of 3PLs, onboarding clients can be quite the task but ShipHero has found a way to make it very painless and very quick.”
Getting set up with ShipHero was exceedingly simple. A dedicated solutions engineer visited Swoop’s warehouse to help Brandon and his team with migration, education, training, and rollout. Brandon describes it as a “true partnership” as opposed to just another piece of software you invest in and never wind up using. After that, using ShipHero within the warehouse is intuitive.
ShipHero’s software is the perfect fit for e-commerce fulfillment 3PL warehouses looking to scale up. Part of what makes it such an effective solution is its seamless integration with must-have distribution platforms like Amazon.
Brittany, what was the integration process like for you?
Brittany: “We have a Fulfilled By Merchant (FBM) storefront on Amazon. It took us maybe a minute to integrate ShipHero into everything. Anyone who’s done FBM Amazon fulfillment knows that it can be a pain in the ass without the proper systems in place. With ShipHero, fulfillment is as easy as slapping labels onto packing slips. The integration is perfect and seamless.
With ShipHero, fulfillment is as easy as slapping labels onto packing slips. The integration is perfect and seamless.”
And what have you been able to accomplish since the switch?
Brittany: “Through ShipHero, we have the ability to export our orders, get transparency into what’s moving, assess issues, purchase labels, and ship on our accounts. It’s all stuff you need—laid out in a way that’s intuitive and useful for you.
“We have a team of 30 people responding to customer requests full-time. With ShipHero, they can see what’s going on with an order, make notes, and talk to the warehouse—all through one user-friendly interface.”
ShipHero also provides much-needed visibility into the fulfillment process for Brittany’s team. With it, they’re able to maintain the same exceptional, high-level of customer service that first catapulted the BURST brand into the limelight.
ShipHero has even worked with Brittany directly to add options that increase back-end efficiency. For example, instead of needing to pick and weigh each order individually, the ‘bulk shipping’ feature allows warehouse staff to easily pick and ship hundreds of the same product—perfect for a company with limited SKUs.
And if anything ever is confusing, Brittany has an easy-to-navigate knowledge database at her fingertips—help.shradical.wpengine.com—and she knows that ShipHero’s team is always standing by to help.
Results
Fully-loaded costs cut by 35% or more.
Brittany, what have been the lasting results of switching to ShipHero?
Brittany: “We have unbelievable retention rates because we strive to create an incomparable experience for our customers. Robust and user-friendly software makes that possible. A solution like ShipHero pays for itself over and over again. In 2020, we anticipate our growth rate doubling native to the US. Projections indicate that we’ll grow another 60–70% the year after. As for international growth—that’s another beast for another day.
To make that growth a reality, ShipHero is vital. We need software that will scale with us as our volumes increase and we expand into multiple locations. The ability to do that without extensively programming lead times (i.e., logic for routing one thing to one place and another thing to another place) is helpful.
“Since switching to ShipHero, we’ve reduced our fully-loaded costs by 35%. At the volumes we move, that’s huge. Robust and user-friendly software makes our high retention rate]possible. A solution like ShipHero pays for itself over and over again.”
BURST continues to have extraordinary retention rates for a subscription-based business, and that’s wholly thanks to their stellar customer service and super-fast turnaround times. According to Brittany, ShipHero is part of the solution that enables them to continuously deliver that high-quality service.
With ShipHero, Brittany is confident that her 3PL has a software solution that will enable them to keep pace as BURST expands—which is good, because the company’s growth doesn’t show any signs of slowing down.
BURST currently moves well over 100,000 packages each month. Brittany expects that number to double within a year—and that’s before BURST takes its products to an international market.
ShipHero delivers simple and smart warehouse management that scales with you. Let’s talk.
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May 17, 2021 | Blog, The Packet
Front and Center
Gasoline Pipeline Hack
Good news, gasoline is once again flowing through the Colonial Pipeline. The most recent victim of a ransomware cyber-attack that locked their systems and caused gasoline to stop flowing, Colonial Pipeline Co. was pressured to cough up nearly $5 million in cryptocurrency to hacker group, DarkSide (believed to be based in Eastern Europe, tho it could’ve been Al Gore).
Although at first publicly declaring that they would not pay, the company caved after a few hours, when faced with potential mass shortages of gasoline and jet fuel for major cities along the East Coast of the United States.
What do gasoline pipelines do anyway?
Pipelines transfer crude oil to refineries, so that they can turn them into gasoline, diesel fuel, jet fuel, propane, and more types of oil-based products. Pipelines are also used to transfer gasoline from refineries to major cities. The Colonial Pipeline, in particular, transports gasoline directly to dozens of giant tanks across the Southeast. From there, smaller fuel trucks haul up to 8,000 gallons to individual gas stations.
What’s the damage?
At the time of writing, 74 percent of North Carolina gas stations do not have a fuel supply, and there are shortages in southern Virginia, the Carolinas, Georgia and Tennessee. There is not a shortage of gasoline; rather, refineries are unable to get gasoline to North Carolina and these areas. Due to this, the average gas prices have topped $3 for the first time since October 2014. This has also caused mass panic-buying, long lines, shortages, and worst of all, so many dad jokes about “their gas pipelines being wide open????”.
Back of the Packet
Supply Chain Outages
CNN has put together a list of product shortages that are plaguing the global economy. From ketchup packets to chlorine, you can find the list here
FedEx E-Commerce Learning Lab
On Thursday, FedEx announced the launch of their new learning program designed to help diverse small business owners develop their e-commerce operations. The program includes free resources for entreprenuers, in addition to providing access to capital, networks and coaching.
Colt 45, I CHOOSE YOU!
Apparently the trading card industry has experienced an immense boon as of late, where trading cards like Sports, Magic: The Gathering, and Pokémon cards have become so sought after that stores can’t keep up with demand. Not to mention, companies that estimate the worth of trading cards have received and graded “avalanches of cards” over the past year.
Despite the long lines of customers waiting hours to buy, Target has recently announced that they will no longer be selling the trading cards, due to a fight that broke out at a Target in Brookfield, Wisconsin. Police were called when a witness saw one man pull a gun. The other man pulled a Charizard card. It was highly effective. Nobody was hurt.
Cool Online Brand of the Week
Call Winnie the Pooh. Since launching only a couple months ago in February 2021, OC Luxury Picnics has disrupted the picnic space, with more than 60 gatherings ranging from a romantic dinner for 2, to an outdoor boba-themed picnic of 20. The founder has since become excited at the idea of starting a fully-fledged business that does not need a brick-and-mortar location. At this time, they only service the lucky folks in Orange County, CA, but this business illustrates the ingenuity of entrepreneurs that turn a side-hustle into a $30,000 venture.
ShipHero News
Brexit… not the Harry/Megan saga, the real one.
In this article, we dive into Brexit’s overall effect on your ecommerce business operations, and the 4 things you need to know when shipping to and from the UK.
Shipping Dumbbells
Shipping heavy items shouldn’t cost you its weight in gold. For tips and tricks on how to make shipping heavy items cheaper, check out our recent blog post here.
Big news: ShipHero is hiring!
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May 12, 2021 | Best Practices, Blog, Fulfillment, Warehouse Management Software
Providing customers with fast shipping options is vital to success, but for items on the heavier side, this can end up costing you an arm and a leg. Small packages? Those are easy to ship, and major carriers often give you nice discounts on them. But what about the big stuff?
When it comes to the shipping process, big carriers have come prepared to efficiently manage the logistics of oversized shipping. USPS and FedEx can even have heavy items delivered by the next business day. But at what cost?
Well, there’s a blueprint that you can follow to cut heavy package shipping costs down significantly and avoid unwanted expenses. If you trim the costs down from all around, the result is noticeable savings.
How to Ship Large Items
The right packing method ensures the safety of your large items. Here are four shipping strategies for oversized products:
Use Sturdy Boxes
Naturally, heavier and larger items need sturdier boxes. Always use new boxes when shipping large items because secondhand boxes may have some wear and tear on them.
If you can’t find double-walled or reinforced boxes, pack your original box in a larger box to add extra protection layers. Make sure to add extra cushioning with bubble wrap or packing peanuts between the boxes to minimize movement during transit.
Seal With Heavy-Duty Packing Tape
Don’t be cheap by using duct tape or masking tape. When sealing boxes containing large objects, always use heavy-duty packing tape to seal every seam of your box so it won’t break open.
Calculate Package Dimensions and Cost
Oversized shipping can be expensive, so calculate your package’s weight, length and girth before going to the mail carrier. Once you have the package’s dimensions, you can calculate a shipping estimate and know how much money to prepare.
Consider Dividing the Shipment if Possible
Sometimes, sending your items in several boxes is cheaper than sending all of them in one box, even if there’s only one recipient. Consider dividing your shipment if the cost of shipping several boxes at once is cheaper than sending all the items in one box.
What to Consider When Shipping Heavy Items
When it comes to shipping heavy items and figuring out how to cut costs, you first need to ask, what am I being charged for? Knowing what factors count towards the shipping rates helps you direct your attention towards trimming these costs.
Dimensional Weight
The concept of dimensional weight was introduced around 2015, and it differs from your package’s actual weight. Dimensional weight is a theoretical weight that factors into your package’s dimensions. Shipping companies adopted this model because they lost money on large packages that weighed less.
How does this concern you? Well, when your shipping partner calculates the shipping fees, they will take the greater of the two weights – dimensional or actual – into account. If your package weighs less than its dimensional weight, that’s what you’ll be charged for – so this is important to look into beforehand.
Fragility of Items
If the goods you are having delivered are damaged during the shipping process, then that’s going to send your costs sky-high. Damaged goods mean expensive returns and refunds, which you really want to avoid. So if you’re looking to ship items that need extra care, find a carrier that offers commendable fragile shipping services.
Origin and Destination of the Package
Big or small, the shipping fees you pay on a package will always incorporate the shipping zone into the calculation. This means that if the package travels a long distance to reach the customer, it will cost you more.
How can you cut these costs down? Opt for a distributed inventory! You can dramatically reduce shipping costs with distributed fulfillment centers in strategic locations.
Carrier Being Used
The shipping costs you pay also depend on which carrier you’re using. Some are more generous when it comes to shipping oversized or fragile items, while others aren’t so much.
Type of Service Being Used
Shipping fees also depend on the shipping services you’re going for. Is it a 2-day delivery? Is it next-day delivery? Does the product need to be shipped internationally? Also, the price increment for shipping zones varies with the type of service. So, your zone-to-zone shipping fees for 2-day delivery may not increase as much as for overnight delivery.
Saving Money When Shipping Large Items for Small Business
As a small business owner, shipping large items can be expensive. Here are some top tips to try the next time you’re sending oversized products:
Reduce Package Weight
Heavier packages are more expensive to ship. While you can’t reduce your product’s weight, you can use lighter packaging to cut shipping costs.
Some good ways to reduce package weight are:
- Pack items in corrugated cardboard boxes.
- Use lightweight cushioning like air pillows and bubble wrap.
- Design custom lightweight packages that fit your products perfectly.
Reducing your package weight may only save you a few cents per package, but the savings add up, and you’ll save hundreds of dollars in the long run.
Buy Appropriately-Sized Packages
Many businesses adopt a one-size-fits-all approach to packaging, where they buy a lot of big boxes and use them to ship everything. While convenient, using large boxes to ship small products means paying more because of the bigger packages.
Instead of adopting a one-size-fits-all approach, you can buy several types of boxes that perfectly fit all your products and use them appropriately. This approach cuts down your average package size, meaning you’ll save on shipping costs.
Choose Flat-Rate Shipping
Flat-rate shipping means the delivery cost is always the same, regardless of the package’s dimensions. If you can get a reasonable flat-rate shipping cost, you don’t have to worry about selling oversized products anymore because you’ll be charged the same regardless of package size.
Provide Local Delivery and Pickup
If your business sells locally, you can provide local delivery or curbside pickup to people in your area. Since you can assign staff to deliver products or have buyers come to pick their purchases up, you can reduce or even eliminate the cost of shipping.
Best Way to Ship Large, Heavy Items
Major carriers have their own prices and services for shipping heavy and oversized items; one carrier isn’t necessarily better than another across the board. You need to determine which carrier specifically offers you the best package for what you’re shipping.
Carriers such as USPS, UPS and FedEx provide services to small businesses and even individuals, so they put their prices up in the open for you to see easily. But freight carriers such as DHL and FedEx freight that focus on serving large businesses don’t have their prices up publicly, so you need to contact them for a quote.
Here are some things to consider when choosing a carrier to ship oversized items:
- Package dimensions: Your package’s size is the first thing that determines your shipping rates. Choose a carrier that offers reasonable rates for large packages.
- Item fragility: If you’re shipping fragile items, choose a carrier service renowned for delivering fragile shipments safely.
- Services offered: Depending on your client base, you may need specialized services like next-day delivery or international shipping. Choose a carrier that provides all the services you need.
Shipping Services for Large Items
Many carriers offer large item shipping solutions for your business, but each offers different benefits. Here, we look at three of the best large item shipping companies available today:
USPS
The United States Postal Service (USPS) is the largest carrier, so it should be no surprise that they offer pretty diverse shipping solutions to cater to different needs.
Priority Mail: 1-3 days
The USPS Priority Mail option is available for items that weigh 70 pounds and under, and the packages range from small envelopes to large boxes of around 1 ft x 1ft x 6 inches. If you’re looking to send a heavy item that is small or medium-sized in a reasonable amount of time, then the Priority Mail option is a good choice. While it’s not the fastest option, the delivery service gets the items to your customers within 1-3 days, which is great.
Priority Mail Express: Overnight
The Priority Mail Express is USPS’s fastest shipping option, where orders are guaranteed to reach your customers by the next business day. For packages under 70 pounds, the Priority Mail Express option is good if you can fit the item into the flat rate shipping envelope. Otherwise, the prices are pretty high for larger packages, and you might be better off with a different carrier.
Media Mail: 2-10 days
Media Mail is a niche-specific shipping option from which select eCommerce businesses can benefit massively. With Media Mail, media items such as CDs, DVDs and books can be shipped at extremely affordable rates – the best rates you’ll find. So if you’ve got some heavy media items that need to be delivered, Media Mail is your best bet.
Ground: 2-8 days
If your package is too big to fit in the Priority Mail flat rate box, then enter the Ground shipping option. This option still limits you to 70 pounds, but the size limits are less restrictive.
As you can see, the trade-off is that Ground shipping is a lot slower than Priority Mail. The prices are calculated depending on the shipping zone and weight.
FedEx
Since we’re discussing major carriers, it should be no surprise that FedEx made it to the list.
Ground: 1-7 days
FedEx doesn’t offer you the same guaranteed speed options as USPS, but they make up for it by offering you more liberal weight options. Unlike USPS, which limits you to 70 pounds, FedEx is far more generous, giving you the option to ship items as heavy as 150 pounds. They’re also more relaxed about package sizes – letting you ship items as large as 108 inches long or 165 inches for length plus girth.
So if your items are too big or too heavy for USPS, then head on over to FedEx.
Freight: Priority or Economy
If you’re shipping heavy items in large volumes, FedEx’s Freight option is one of the best picks. The prices vary immensely, depending on the product’s size and the shipping zone, but you’ll get an exceptional rate if you’re shipping a lot of oversized items.
DHL
Need international shipping taken care of effectively? Enter DHL, one of the best freight shipping carriers out there.
Air Freight
DHL’s Air freight option has your goods delivered through flights that are scheduled along major routes. The best part about the Air freight service is that there are many options to choose from depending on your needs.
Need door-to-door, airport-to-door, or door-to-airport delivery taken care of? DHL will manage all three. If speed is a priority, then Urgent Air Freight will have your delivery taken care of in just 1-2 business days. If you’re not in a rush, then Air Economy takes care of shipments within 5-7 days. If you have special cargo or temperature-sensitive items, DHL has options for those too, including delivering shipments in temperature-controlled environments.
Ocean Freight
Similar to the Air freight option, the Ocean freight service is great for shipping heavy items in bulk, except overseas rather than by air. The two main options are Full Container (FCL) and Less Than Container (LCL), but they offer special options for freight shipments like temperature-controlled environments and transportation facilities for liquids.
Our advice? If you’re looking to send big, bulky items in large quantities, then freight shipping is the way to go.
What to Do Before Shipping Large and Heavy Items
Before shipping large and heavy items, it’s important to ensure they are properly secured and in packages of the right dimensions. This involves using the right amount of dunnage where appropriate, and if you’re shipping fragile items, opt for something like bubble wrap to keep it safe. Large and heavy items are usually more costly, so you really can’t afford to have them damaged in shipping.
What’s an Oversized Item?
A package is considered ‘oversized’ when it’s either too large, too heavy, or a combination of both. Carriers traditionally consider packages oversized if the item’s length and girth are greater than 165 inches, if the goods weigh more than 150lbs, or if the length is greater than 108 inches. However, many carriers now limit the combined length to 130 inches. Let’s see what each carrier considers ‘oversized.’
USPS Oversized
USPS classifies items as oversized if they have a length of 108 inches and no more than 130 inches combined length and girth. For this range, businesses pay a standard Parcel Select oversized fee which is reasonable. Beyond these dimensions, though, you’ll have to contact USPS for a specific quote. USPS specifies oversized items by dimensions but not weight.
UPS Oversized
UPS has three criteria for classifying an item as oversized; if its weight is more than 150lbs, if the length alone is more than 108 inches, or if the combined length and girth exceed 165 inches. If your package dimensions or weight fall under these conditions, then you will have to pay UPS’s Over Maximum Limits charges subject to DIM.
FedEx Oversized
FedEx classifies items as oversized if the length exceeds 96 inches or 130 inches in length plus girth. Dimensional weight calculations apply to oversized product calculations, and there is a minimum 90lbs village weight charge too. While FedEx still lets you ship oversized products by ground, there is an oversized shipping charge of $90 per parcel. Also, during annual peak shipping times, an additional charge called the oversized peak surcharge ($37.5 per package) is applicable too. So, FedEx may not be the most cost-effective option.
DHL Oversized
DHL classifies an oversized item as one that exceeds 70kg (around 155lbs) in weight or has any one dimension that exceeds 120 cm (that’s 47.24 inches). So, for oversized classification, DHL considers all the dimensions rather than the length. The oversized package cost is $89, but they have different services available that you can contact them about.
How to Ship Large or Oversized Items
When it comes to shipping your large or oversized items, there are two things to prioritize; 1) keep the shipping fee as low as possible and 2) minimize the risk of damage. The steps themselves are quite straightforward:
1. Package Your Item Properly
This goes without saying, but we’ll mention it anyway – make sure that your items are secured in place and with great care.
2. Take Measurements
Remember how we discussed the dimensional weight pricing model earlier? Well, when getting your items ready for shipping, look for the most efficient packaging option. This will not only help you score a lower shipping fee but is also important for keeping the goods safe. If your package dimensions are off relative to the items inside, then they might get tossed around during shipping and consequently damaged.
3. Weigh Your Package
Weigh your package beforehand so you know exactly what pricing options it falls under. Is your package too heavy to be shipped by USPS’s conventional options, for example? Weighing your package is an important part of determining the right carrier and shipping option.
4. Calculate Rates
Calculate the rates that you will have to pay depending on the options available to you. Can you afford to go for the express options, or will that cut your profit margins down? Is one carrier giving you a better rate for your product’s dimensions?
5. Book and Pay
Now that you’ve worked out which option is best for shipping your package, go ahead and book it!
6. Print Your Shipping Labels
Print your shipping labels out and fill the required details in – where is the package going to, how much does it weigh, etc. Different carriers have different shipping labels, so fill them in as required.
7. Label Your Package
Put the labels on your package so that they’re ready to go!
8. Send the Package
All that’s left now is to send your package and wait for your customers to receive it. Hit the go button!
Let ShipHero Handle Heavy Item Fulfillment
Heavy item fulfillment can be quite tedious, and not every business is equipped to manage oversized shipping efficiently. There are so many factors involved – calculating the weight, comparing weight vs dimensional weight, getting the right package sizes, figuring out which categories your packages fall under and more. So if this all seems too much for you, consider outsourcing the load to a competent third-party logistics partner.
Outsourced Fulfillment
ShipHero is a powerful warehouse management solution that many leading third-party logistics providers rely on. ShipHero also offers eCommerce merchants outsourced fulfillment options – we’ll take the hassle of heavy item fulfillment off your hands and perform all the calculations and leg work for you.
Distributed Fulfillment Centers
Remember how shipping zones were a big factor in calculating shipping fees and how a distributed inventory can help combat this problem? Well, ShipHero has you covered here too. Don’t have your own distributed fulfillment centers? That’s fine; you can have your inventory distributed amongst our own, ultimately reducing shipping distances.
Save on Shipping Costs
An experienced logistics partner like ShipHero can help you make major savings on oversized shipping costs. With distributed fulfillment centers cutting delivery times and shipping costs down, powerful software solutions and an experienced team handling the technical stuff, ShipHero is the logistics solution that can help you slash unnecessary costs.
Shipping Heavy Items FAQs
How much does it cost to ship 100 lbs?
This depends on what carrier you are using. For example, FedEx considers a 100 lbs package oversized, so a $90 oversized fee will apply. However, carriers like DHL and FedEx may not consider this package oversized, so that shipping costs will be lower.
What is the cheapest way to ship heavy items?
There is no single cheapest way to ship heavy items. Many factors come into play, including the package dimensions, package weight, dimensional weight, the type of items and whether or not you have a distributed inventory. A reliable logistics solution partner can help you find the most cost-effective way to ship heavy items.
How do you ship heavy items cheaply?
To ship heavy items cheaply, you need to reduce as much weight as you can. That’s why large items must be properly packaged in boxes, parcels or containers of the right dimensions. The packages need to be weighed and measured so that you can determine the most cost-effective way to have them delivered. Correctly labeling packages before shipping them off is vital to make sure they reach the right destination.
How much does it cost to ship a 25-pound box?
This depends on many factors, including the carrier, the shipping option you are using and where the box is going. For example, let’s look at USPS’s Parcel Select Ground option, which is one of the slowest and most cost-effective delivery options. The 25-pound box can cost anywhere from $25 to above $70, depending on the shipping zone it’s headed.
Conclusion
Shipping heavy and oversized items involves far more complications than you might have imagined. The worst part is that if you don’t take the time to perform the necessary calculations and consider all the important factors, your business may incur significant losses. You’re all set if you have a dedicated team with a skill set that can optimize your heavy item fulfillment.
If oversized shipping seems daunting and beyond what your business can comfortably handle, look no further than ShipHero. Outsourcing your fulfillment process to us means that we’ll work all the technicalities out for you, and find the most cost-effective way to ship your heavy and oversized products.
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About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With over 5,000 brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.
Let us know how we can help you today by scheduling a call HERE.
