Posts Tagged ‘Freight’
Tips for Setting Shipping Fees That Don’t Drive Away Customers
Wednesday, April 2nd, 2008
When it comes to shipping products through your ecommerce business, this can be a bit of a quandary. Businesses have to charge a shipping and handling fee because it would be difficult to stay in business if you paid for these fees yourself.
The dilemma is charging shipping and handling fees that are not too high because you may lose customers, most likely customers leaving items in a shopping cart. If you price the fees too low then you could be working your way out of business. Below are five tips on how to effectively charge shipping and handling fees that will keep customers and make sure you stay in business.
First, it is not worth it to try to make a profit on the shipping and handling fees. Breaking even is the best avenue to take when determining what and how much to charge. Excessive fees is one of biggest reasons consumers will not purchase from a business, even leaving items in a shopping cart perhaps to never return. The rates should be set that best reflects your shipping costs on an annual basis. This may include adding a little bit to cover the unexpected costs, such as if shipments must be sent separately. However, it is important to not make the ‘extra’ too much for than you think your costs will be.
Second, you could consider using the product or order weight as the basis for your shipping and handling fees. Some consumers like this better as they do not feel that they are getting the raw end of the deal because if they purchase something heavy, then they will expect the shipping costs to be higher. If the fees are based on purchase amount, then someone purchasing an item that is a fraction of the weight of another item may feel that the company is getting the better end of the deal.
Additionally, offering a variety of shipping options gives the consumer the perception that the lower-cost shipping, which may take longer, is a better deal. These options may include ground, next-day shipping, two-or-three day shipping, or overnight. You may want to include international charges as well. Of course, it is always a good practice to keep a watch on your competitors and see how they charge for shipping and handling fees.
Reducing the shipping fees when a promotion is occurring can be one of the most highly effective marketing tactics out there. People will respond more positively with a reduction in shipping fees such as $1, rather than a dollar off a product.
Last, always look for new ways of attracting customers. One way to do this is to test a variety of special offers with selected customers. Then you will have a good idea of the different special offers that will bring customers in and back to your website. It is also important to clearly identify the shipping and handling costs prior to a customer getting to the checkout point. Some shipping costs are more than the item itself and it not worth it to the customer. An approach to help with this is to rework your website and provide a way for consumers to check how much the cost will be by providing a zip code button. Then consumers will have a good idea of what their shipping costs will be. Also if you offer free shipping, do it for a certain amount, such as orders exceeding $500. You don’t want to lose money on the deal by offering free shipping.
Tags: E-Commerce and E-Business, Freight, larry Slusser, shipping, shipping costs, shipping options
Posted in News & Articles | No Comments »
A Quick Guide to Freight Shipping
Thursday, November 22nd, 2007
If you need to ship freight using a LTL , or Less-than-Truckload service, there are some facts you should know before getting started. Pricing, packaging, and shipping methods are a bit different with freight shipping. This helpful freight guide will explain these differences.
Freight Shipping Prices
Freight shipping prices are often determined using a method called "Freight Class" or classification of shipments. There are four freight classifications: density, stow ability, ease of handling, and liability. Density is determined by the object’s weight as compared to the space it occupies. This is calculated in pounds per cubic feet. Stow ability is how the object will fit into the trailer along with other packages. Its size, weight, and shape are considered to help determine stow ability.
Ease of handling means how much special care (if any) the package will require. Liability is measured by value per pound, the item�s liability to damage, the package’s tendency to damage other freight items (through spills, explosions, etc.), or if the item is perishable. Freight companies will look at all four factors before determining a price.
Packaging for Freight Shipments
Freight is usually shipped on pallets with reinforcing shrink wrap. The shrink wrap must overlap and be layered to tightly secure the package. The box or item to be shipped must be well-secured to the pallet before wrapping. Avoid stacking multiple items on top of one another and never allow the freight to overlap the pallet. Also, place cardboard between the object and the pallet to reduce risk of damage. Freight shipping puts lots of strain on items, so adequate packaging should always be a top priority. Packing efficiently can also save you money on shipping.
Freight Shipping and Labeling
For multiple pieces of freight, provide a Bill of Lading with an accurate number of pieces and a detailed description of the products. This is especially important for companies to help prevent shortages. Labels should be placed on the packages and pallets, and all labels should match the Bill of Lading to ensure proper delivery. For special labeling to describe the package or to give special instructions, use brightly colored labels.
Freight Shipping to Other Countries
Freight shipping internationally requires certain documentation depending on the country. There are special Bill of Ladings, commercial invoices, a Shipper’s Export Declaration (SED), the NAFTA Certificate of Origin, and other documents to consider.
Save Money on Freight Shipping
When shipping freight, it’s wise to do your homework beforehand. Compare freight services, their requirements, and their pricing. You might also save big by using a freight broker instead of dealing directly with a trucking company. Freight brokers often receive huge discounts because they are dealing with trucking companies from a "wholesale" perspective. You can enjoy some of these savings as well if you plan to ship freight often.
Use this guide and check with freight companies to enjoy savings on all your freight shipping needs.
Tags: Freight, International shipping, less than truck load, saving money, shipping methods
Posted in News & Articles | No Comments »
Choosing and Using a Freight Forwarder
Thursday, October 25th, 2007
Freight forwarders are professionals who handle the shipping of items, usually from overseas. They provide you with all of the information of a shipment, including routes and rates, and they are even able to book cargo space for you. Depending upon the responsibilities outlined in the shipping instructions, the freight forwarder will do many different things for you. They are also able to handle document issues for importing goods.
It’s important to choose the right freight forwarder for your business needs. There are many places that can help you find the one that will fit your needs. You can, of course, check your local yellow pages for freight forwarders to help with your shipping. However, some people are hesitant to choose a business this way. If you do, be sure to check the company’s references and speak to someone about the way they do their business, such what they are most familiar with, and what (if any) areas they specialize in. You can also check on their fees. Find out also if they have any experience with shipping items similar to your items. It’s okay to ask questions to find out if the company will be the one you want to use. If they are hesitant to answer questions, or don’t want to take the time, go with another company!
Most people prefer to use a freight forwarder that has been recommended. If you are this way as well, try checking with other local businesses that may use a freight forwarder. Ask about their level of satisfaction with their freight forwarder and see if you can get names. This way, you will have a bit of an inside scoop on how they perform and what kind of customer satisfaction they provide.
A freight forwarder will handle many things for you, including finding and planning the most proper route for your cargo to go. They will also make sure that the package is delivered to a warehouse for distribution when it arrives at its final location. When it is needed, the freight forwarding company may even transfer the goods for you to the final location. They will see to special needs such as a courier service or hand delivered item. Your freight forwarder should be able to arrange air or sea carriers for your shipments as well. One of their top concerns should be making sure that you make your deadlines as far as shipping goes. It is important that your freight forwarder provides all of these services to you. Before you hire a freight forwarding company, check to make sure that all of these services and anything else you would need is provided
Working with a freight forwarder gives you the peace of mind to know that your shipments are being handled, which is one less thing for you to worry about if you own a business.
Tags: Doing Business Internationally, Freight, International shipping, shipping, shipping methods
Posted in News & Articles | 1 Comment »
Tips for International Shipping
Wednesday, September 26th, 2007
First of all, keep in mind that shipping costs, packaging, time, and condition of arrival are all crucial when it comes to keeping your customers happy with your product. In a sense, last impressions count more than first impressions! Good shipping polices ensure that the customer remains satisfied with what you have offered them.
So how do you determine what to charge for shipping? First, decide if you want to have flat or calculated shipping rates. Allow your customer the option to choose how fast they want the item shipped and for what cost. For example, for international shipping , offer three options, each with a different price and shipping time. Include a shipping calculator that lets the customer know exactly how much shipping is going to cost them, so they don’t feel left out in the dark. Never get greedy and charge more for shipping than what it costs to cover handling fees as well as costs, supplies, and time.
Another tip involves shipping and postage labels. Use an automatic program for shipping labels straight off your printer and your life will become much easier. There are many postage printing services online as well, so when you actually make the trip to the post office, everything will go much faster and more smoothly.
Choosing a reliable and trustworthy shipping company is another important factor in making sure the shipping services you provide to customers are satisfactory. Select a company that you think will work well with your business. One consideration you might make in this regard is whether the company services the countries you plan to ship to. In any instance, don’t be afraid to stick with the tried and true USPS. One advantage of this option is that they provide free priority and international shipping boxes, complimentary pickup service, and a wide variety of box sizes.
UPS is another option for international shipping. The UPS Global Advisor is great for timely international shipping tips and advice for packaging.
If you are planning to ship a lot of heavy items, you may have to carry out extra research into the cost of shipping and how it needs to be done. Larger items are a wholly different ballgame, and require more effort on the part of the business selling this type of product.
Generally, figuring out shipping costs doesn’t have to be the most difficult task in the world - if you put a little time and effort into it before you get the business up and running, everything should go smoothly from the first day of operations.
Of course, you may come across a few hitches before you fully get into the swing of things, but if you keep at it and place customer service and satisfaction at the forefront, you will be rewarded with a loyal customer base and increasing sales. Ultimately, choosing to ship internationally is the right choice for most online entrepreneurs simply because it allows you to reach a larger market. You can increase your profits in no time and develop customers in places you could never have reached with traditional methods. In most cases, choosing to ship internationally is the right choice.
Tags: calculated shipping rates, Doing Business Internationally, Freight, International shipping, shipping, UPS
Posted in News & Articles | No Comments »