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.

And if it is, you’re missing out on a golden opportunity to advertise to people who have already trusted you with their purchase.

You can either design a flyer to print on the reverse, thanking them for their purchase and showing a few examples of general items you currently have for sale, or (if you don’t have too many items to send out) you could personalize the flyer to each customer, showing a number of products related broadly to the item they have just bought from you.

The most important thing is to thank them for their purchase. Quite a few sellers don’t even bother to include the packing slip with items; and fewer still write anything on it, or take advantage of this golden opportunity to promote their business.

If you have an eBay shop, take the chance to encourage your customer to visit it, and sign up for your free newsletter. Take every opportunity to use these packing slips to build up your customer base and your mailing list, because this will lead to increased profits in the future.

Although it is designed for speed, Label Wizard does not skimp on quality. The labels produced by Label Wizard are professional looking and clear. Label Wizard uses a smart sizing text engine that reviews the text before printing to ensure that it will fit into the available space on the label. Font size is then adjusted based on the length of the address to be displayed. This provides enhanced readability, preventing your packages from being delivered to the wrong address and presenting a more professional image to your customers.

Label Wizard Advantages:

Ease of use. Label Wizard is extremely easy to set up, and requires little more than loading the label sheets into your printer, opening a label type in the Label Wizard application, pasting in your logo or address, and pressing the print button. In just a matter of seconds your label is printed exactly the way you want it to look.

Set up options. Label Wizard allows you to print on any type of label sheets, and the user is able to set parameters to define the format of the labels. Labels can also be saved as LWP files, enabling you to build your own library of label types.

Variety. Label Wizard can be used to print business cards, color Christmas cards, wedding invitations, and anything else you can imagine.

Free trial. LEDSET offers a free forty-five day trial of Label Wizard. If you decide to continue using the product, a lifetime registration key costs only $19.95.

Label Wizard Disadvantages:

Options. Although this product is a step above similar programs, it still does not provide users with enough options. It would be nice to be able to combine and save multiple graphics on the same label, and to have the option of printing addresses from lists without the need to manually paste in each address.

Compatibility. Label Wizard would be much more attractive if it were compatible with a wider range of operating systems. Label Wizard Pro only works with Windows NT, Windows 2000, and Windows XP.

Font limitations. The software automatically selects and uses the largest font size possible for each label, which is great when printing address labels. Unfortunately, there are times when you are creating other label types where it would be lovely to have the option of increasing or decreasing the size of the text. This is not possible with Label Wizard, and reduces the variety of printing options.

Overall, Label Wizard is at least worth checking out. Considering the trial version lasts for forty-five days, it is worth a quick download. For users interested primarily in printing address labels, especially those used to printers like Dymo, Label Wizard will be a step in the right direction. For those looking for greater versatility, considering another product might be wise.

Why should an organization use a fulfillment center? Is it cost effective? What size should an organization be before using one? The question of whether to use a fulfillment center or not will be specific to your business.

Factor in the cost of your time and/or your employees’ time to process the orders and ship the products, and deal with the shipping companies. Compare these costs to the cost of the fulfillment center – how do the two compare? How much time will you save using a fulfillment center? How much is that time worth to your business?

Let the data make the decision for you. If you move forward with a fulfillment center, make sure to track all costs and do an after the fact comparison to the other options you’re considering. Make sure the decision you make is the best one for your business and bottom line.

What other considerations should be made prior to contracting with a fulfillment center?

First, consider the location of the fulfillment center. They are located all over the country, but it is important that the center you select is close to where your customers are located, not where your organization is located. This will require you to determine where most of your customers are located before you select a center. Your shipping costs will be much lower if the fulfillment center is located closer to where most of your customers are rather than closer to your operation.

Next, determine the size of the fulfillment center, as they are as small as a few employees to organizations the size of UPS. The one you select should be able to handle your order fulfillment needs, including if you have peaks and valleys with your orders, and if the center can handle the peaks when they occur.

When determining if you will use a fulfillment center, look at the different shipping options available and what their turnaround time is for shipping your orders. The shipping options available should be at least what you currently offer. In terms of turnaround time, know the policy of the fulfillment center and if it corresponds with your business’s own policy.

Find out the most effective communication method in case of cancelled orders or a change in a customer’s address. If the center is not available by phone or unable to respond immediately by email, then that could mean lost customers, and lost money for you. Also make sure that you find out the center’s error rate and what they do to rectify any errors. Specifically, will they pay to replace the item or ship at a faster rate the replacement item?

Another consideration would be their order entry methods. For instance, would you be required to forward each invoice to the warehouse, enter the information into their web-based system, or email a spreadsheet with all the orders of the day? Whatever the order entry requirement is will have a direct impact on your business. For instance, while it may save time and money entering the orders directly into a web-based program, that procedure may become less convenient as your business grows.

On the other hand, if you use an email system to forward each individual invoice, this could effect how quickly the orders get shipped out, giving you a competitive advantage. Once again, depending on the volume of your sales, sending spreadsheets at the end of the day with all the orders at once will save time and money, provided you do not mind that the next day shipping will actually be a two-day shipping for your customer. Whatever you choose, ensure that the order entry method meets your business needs and your budget.

Lastly, when choosing a fulfillment center, interview both references and a warehouse staff. Finding the right center for your organization at the price you can afford is imperative for the future success of your organization.

Address Labels

A plentiful supply of blank address labels is absolutely necessary, so that you can quickly and easily print out your customers’ names and addresses and affix them to the packages. You can also print your own return address details on blank address labels and apply them to the back of each parcel you send.

Choose good quality address labels that will not jam in your printer. The labels themselves should be of a suitable size for the packages and parcels that you send. For example, if you send lots of small packages, relatively small address labels, which are available on sheets of 12, 14 or 16 labels, will be sufficient. If, however, your goods are sent in large parcels, you will require larger labels that will stand out when affixed to a parcel. These labels are supplied on sheets of four, six or eight labels.

Packaging Tape

Packaging tape is an essential item if you will be sending fairly heavy items in boxes and parcels. Packaging tape adheres well to paper and cardboard and provides a much stronger bond than scotch tape. You can feel assured that a package secured with packaging tape will arrive safely at its destination, even if you are sending it across the world.

It is also a good idea to purchase a packaging tape dispenser, so that you can apply and cut packaging tape more easily.

Scotch tape

You can be sure that you will use rolls and rolls of scotch tape for your eBay business, so buy in bulk and save money. A heavy duty tape dispenser, that will keep you constantly and easily supplied with tape, is a very inexpensive but worthwhile investment.

Scissors

At least one pair of good quality, hard wearing scissors is essential, as you are likely to be cutting paper, bubble wrap, tape and other materials on a daily basis.

Cardboard Boxes

If the items you sell are large, heavy or bulky, you will need a good supply of cardboard boxes. Measure the items first, add a little extra to each of the dimensions to allow for interior packaging, and then order a few individual boxes of about this size so that you can see which box most easily fits the item you are selling.

Some cardboard box manufacturers will provide you with samples, either free of charge or for just a small charge to cover postage and packing, in the hope that you will place a larger order at a later date.

Cardboard boxes usually arrive flat-packed and this means that you will have to assemble each box yourself. Ensure that it is quick and easy to do so, otherwise you will be spending more time than you can afford on the assembly of boxes.

Cardboard Mailing Packs and Tubes

If you are selling books, CDs, DVDs or similar items, there are a variety of cardboard mailing packs on the market that enable you to package these items quickly and easily in protective cardboard. If you sell posters, prints or another paper-based item that can be rolled up, cardboard mailing tubes are also available.

Ensure that you choose mailing packs or tubes that are of a suitable size to contain the items you will send. The mailing packs will be provided flat packed, and you simply insert an item, fold the cardboard around it as instructed and seal the pack with the strong self-adhesive tape provided on one side of the pack.

Polythene Mailing Bags

The main advantage of polythene mailing bags is that they are lightweight, and therefore inexpensive to send. If you are selling clothing or other lightweight goods, polythene mailing bags are a good option. If you are selling heavier items, such as books, polythene mailing bags may not be strong enough.

Polythene mailing bags come in different thicknesses, usually between 60 microns and 75 microns. Experiment with a few different types of polythene mailing bag, and ask your customers how satisfied they were with the condition in which the goods arrived before deciding on which type to use.

Padded Envelopes

Padded envelopes (sometimes known as "jiffy bags") are very useful for mailing many types of different items, including CDs, DVDs, books, cosmetics, toiletries, and so on. The integrated layer of bubble wrapping gives the item extra protection during its journey.

Padded envelopes come in many different sizes from the very small to the extra large. If you sell a range of different goods, purchase a box of padded envelopes in a variety of sizes, so that you will always be able to find an envelope of a suitable size. If you sell just CDs or DVDs, for example, you will only need to purchase padded envelopes of one size to fit each item that you sell.

Mailing Scales

Although not essential when starting your eBay business, mailing scales designed to weigh letters and parcels are useful. You can, for example, weigh your packaged item and find out how much it will cost to send before listing it on eBay. That way, you will be able to set an accurate postage and packing charge and avoid the expensive mistakes which can happen when you are starting out and you underestimate how much it will cost to mail an item.

When choosing a set of scales, ensure that it will be suitable for weighing all of the items you sell, as some scales only weigh items up to a certain limit. Other scales may only be accurate up to the nearest pound.

Bubble Wrap

For eBay sellers of large or fragile items, a jumbo-sized roll of bubble wrap is an essential item. You can wrap each item in bubble wrap for extra protection before packaging it. That way, you can be more assured that items will arrive safely at their destination.

Polystyrene Chips

For larger items that are sent in boxes, polystyrene chips are useful to protect and cushion the item against knocks and bangs in transit.

Once you have made a list of the packaging materials you require, shop around for the best deal available on the quantities that you wish to purchase. Packaging supplies can be bought from office supply companies such as Office Depot or Staples; mail order firms such as Viking Direct; wholesalers; manufacturers; or on eBay itself. Sellers of packaging supplies on eBay often offer quantities suitable for other eBay sellers at favorable prices, but this may not necessarily be the best deal for you, especially if you are ordering large quantities.

It is a good idea to take delivery of your packaging supplies before the orders start flooding in. That way, you will be able to meet demand and send items within a day or two of ordering. If you delay sending ordered items because you do not have the necessary packaging materials, your feedback rating on eBay will suffer, as people do not like waiting a long time to receive goods they have paid for. Another danger is that, if you do not have the required supplies of packaging materials, you will buy small quantities locally just to meet demand. This will unnecessarily increase your costs and adversely affect your profit margin.

Therefore, during the planning stage of your eBay business, decide on the type and quantity of packaging materials you will require for the initial stage of your business. Shop around for the best deal and purchase the supplies before starting to sell on eBay. You do not need to buy large quantities of packaging supplies at first but you should ensure that you purchase sufficient quantities to cover the expected initial demand.

In this article, we will look at some ways in which you can trim your shipping costs and make your business a lot more profitable.

* Save A Penny, Save A Pound. Remember that shipping is not all about the carrier, the postage, or even the weight. If you are selling a lot of items, then odds are you are spending a lot of money each year on smaller, unnoticed items such as packaging materials.

Look for ways in which you can reduce the costs of these materials, including tape, Styrofoam, and labels. Buying wholesale or bulk is a great start; and of course, you can always go directly to the source through a shipping materials website.

* Use The Right Box Sizes! If you sell a large variety of products in terms of size, then make sure that you understand that size does matter in terms of shipping costs. There are a wide range of box and envelope sizes out there, and the U.S. postal service provides many of them for free.

Using the right size box or envelope will mean less cost for individual items shipped. It will also mean using a lot less of the smaller materials that add up, discussed in point number one!

* Shop Around For A Carrier. Of course, the biggest expense you will incur when it comes to shipping will be in the carrier services you use. You should undergo an analysis of your carrier’s costs every month and compare them to what the competition is offering.

There are plenty of options when it comes to delivering your packages, from shared loads to bus lines and of course the good old postal service. The most cost efficient means will depend on how many packages you want to send, and how much they will weigh.

Remember that it might work out much cheaper, per package, to send a bunch out at once, even though the total price itself may seem shockingly high. Take the time to do the math!

Shipping costs are a critical concern for any business that sells products to a diverse marketplace. Make sure that you invest the time needed in order to ensure you are keeping this costly part of your business as inexpensive as possible.

In this environment, several types of businesses have been able to thrive. One is the idea of the consignment business, something that really got kicked into high gear as far as dollars earned with the advent of eBay.

In this article, we will take a look at how you can build your own consignment business.

What Is Consignment?

Basically, consignment works on the principle that one person’s trash is another one’s treasure. Consignment stores take goods from one person and sell them in exchange for a percentage of the sale. This means that consignment stores don’t have to worry about the cost of sourcing products; they receive all their sellable goods through word of mouth.

What this means in practice is that there are several steps to creating a successful online consignment store; finding people with goods they want sold, creating a virtual storefront, finding the customers, and then getting them their goods.

Finding Products

You can’t have a store without anything to sell. In order to find items, you might want to think about starting out with niche products; look for people who are trying to sell off outdoor equipment, items for babies or children, and so on.

This involves some marketing – and if you narrow your products down a little bit, you will be able to reach the specific audience that is more likely to use the products and services you offer.

Creating Your Store

The key to success with your consignment store will be your website. A good website will attract both customers and donators to your store. It needs to be clean, efficient, and appealing, with clearly marked areas where both sellers and buyers can go.

Make sure that all of your products are well detailed and come with pictures, and condition ratings are also very beneficial. Also, make sure that you include commonly used transaction software, credit cards and PayPal being two of the most popular.

Don’t limit your sales to your website only; sites such as eBay will allow you to find more customers and to network efficiently.

Shipping

The final stage of consignment is getting the items into the hands of buyers. This can also be the most critical stage for a business; if your customer receives a package efficiently, fairly cheaply, and in a good amount of time they will be more likely to use your store again in the near future.

Make sure that you really deliver the goods in every sense of the phrase!

Shipping containers – Could you be using lighter, smaller boxes, or for smaller items, padded envelopes instead of boxes? Heavy boxes add weight and weight adds cost. Many times, switching boxes is just enough to lower your rate down to the next level! Also, shop around for prices on shipping containers to see if you are getting the best rate possible. If you haven’t compared costs in a while, chances are you’re paying too much!

Reshipper boxes – Are some of the products in your inventory already packaged in reshippable boxes? If so, then they don’t need an outer box to ship in – unless a customer ordered multiple items. Over time, that alone could save you a substantial amount of money – both in materials and shipping costs!

Packing materials – Is your warehouse staff stuffing every order with packing materials – whether or not the items are fragile or breakable? There have been plenty of stories of customers receiving T-shirts or pillows packed in a box full of packing peanuts. If that’s the case, then you’re throwing money away. Only delicate or easily damaged items need packing material. You should have your inventory broken down into what needs packing material when shipped and what doesn’t. Doing that could prove to be a big money saver!

Shipping rates – It’s possible that just a quick call to UPS, FedEx or DHL could lower your shipping rates significantly. Give each of them a call to see if you can negotiate better rates! Be sure to match their rates against the USPS to see what works best for your company. You might decide to use different shippers, depending on which region a customer is in. It might just save you a considerable amount of money!

Inventory – Making sure you are always in stock means never having to split up an order and take the hit on two shipments. Having an up-to-date inventory system should do the trick. They’re easy to find and inexpensive too!

Be on top of your expenses

It pays to be aware of your shipping rates and shipments. Otherwise, you might unknowingly be paying several dollars extra for a shipment – each and every time! Make a spreadsheet that divides up the different shipping companies with the different regions of the U.S. and the other countries you ship to. Price out your average shipments to each of the regions. Most companies are surprised to see the difference in prices from shipper to shipper, region to region. You might decide to use different shippers for different regions, or ask one shipper to match another’s rates.

One alternative to regular shipping measures that can mean a big difference in the bottom line of a small business is LTL shipping.

In this article we will take a look at exactly what LTL shipping is, and the pros and cons of using LTL shipping over parcel carriers.

What LTL Shipping Is

LTL is an acronym which stands for Less than Truck Load. Think about one of the big semi-trailers you see cruising along the freeway; the goods in that trailer constitute a full truckload. As you can imagine, it gets pretty expensive to send all those goods along their way, particularly with the rising costs of fuel.

LTL shipping means that freight from 100 pounds to 10,000 pounds can be shipped without paying the same costs as a full truckload (without LTL, small businesses would have to pay the same cost as full truckloads, but with less inventory to balance it out).

Freight is consolidated onto the truck until the truck reaches capacity, and then shipped. So, LTL shipping means that the goods of several businesses are combined for shipping.

LTL vs. Parcel Carriers

Parcel carriers are another way option when it comes to shipping goods that are not economical to ship on a trailer. Parcel shipping is more limited per unit than LTL, because parcel carriers will not ship more than 150 pounds in one trip.

This means that when it comes to large shipments, parcel carriers can create a lot of extra work in the form of tracking (you’ll have to keep track of each package), record keeping, and of course loading and unloading. With LTL shipping, you are able to ship larger quantities – and that means a lot less paperwork.

Also, when the final costs are broken down, LTL shipping will cost less per unit than parcel carriers. The "strength in numbers" factor also applies to the safety of goods in transport; one unit shipped via parcel carrier is more likely to be damaged than 100 units palleted together on an LTL shipment.

Of course, even LTL prices might not be practical for some small businesses. The outlay of money for the shipping will still be quite high, and you may have to wait for a truck to become full before shipping. In cases where a business sends or receives high end, expensive products that are relatively light on a semi-frequent basis, parcel carriers will remain the most economical form of shipping.

Conducting global business when it comes to selling your products, though, means that there are some things you need to keep in mind. There’s a different approach for selling goods in different countries; let’s take a look at some of the most important things that you should be aware of.

Exchange Rates

If you are a business owner, and sell products globally, you need to be aware of the different exchange rates for currency in the countries you are selling to; it can make the difference between a big profit or a small loss. The recent skyrocketing of the Canadian dollar next to the United States dollar is a good example; receiving Canadian money now means that business owners in Canada are getting more product for their money.

Many businesses all over the world are taking advantage of this by taking Canadian money “on par” – that is, one dollar is equal to one dollar – and this means that instead of making one dollar on a sale, you are actually making $1.07 or so. Not a huge difference, but it adds up when you are talking big sales!

Finding a Market

Obviously, successful global product selling is going to mean that you need to suit your products to the needs of the people in the country where you are selling. Often this can mean just a minor tweak in a product that already sells well.

Use The Internet For Marketing!

Well, you already know that you are going to use the Internet to sell your goods, but you should also consider that this tool can also be used to attract new customers. Selling globally will mean that you use the same Internet marketing strategies that you use in your own country, but tailored to a specific “target” population.

You will have to research the keywords that are used the most by other countries, and that may even mean using different spellings than those you are used to. A good grasp of the customs, hobbies, and jargon of other countries can also help you to spread the word about your business on a global scale.

Something you may consider is partnering with someone from that country who can advise you on your marketing and selling strategy.

Shipping

Of course, the major concern when it comes to selling products globally online is shipping. Not only do you need to source the goods, you also need to ensure that the products make their way from wherever you have them stored to the customer safely and cost effectively.

This may even mean that you never come into contact with the products you sell yourself, besides the occasional sourcing trip; it will probably be cheaper to buy, sell, and ship products using companies that are totally based outside of your own country.

Selling products on a global scale has never been easier, and there is a lot of money to be made. The trick is in paying attention to some of the most important details and finding ways to meet potential customers on their terms; the right touch can lead to a very successful business.