Shipping is an important method in any business, be it small or large. But before setting up shipping costs and processes within your company, you must first learn and understand how your shipping and fulfillment levels are calculated.
The cost of shipping is determined by process and velocity, duration, destination and volume of shipment. Support and speed of shipment means the delivery time and distribution choices. Consumers want faster delivery, which is why the higher the cost or demand, the faster a shipping service is.
The second thing to consider is the scale and the weight of the items being delivered. Dimensional weight implies object size, rather than actual weight. Naturally, a customer would pay less on lighter parcels but more on heavier parcels.
The last thing which affects shipping costs is the difference between the shipper ‘s address and the recipient’s address. If you are exporting goods to international destinations there are a few things to take note of.
Firstly, check the product’s shippability. This is due to some of the restrictions that some countries place on certain goods. Make sure the product you are shipping to that particular country or destination is approved.
Secondly, the additional fines, customs duties and documents. Also to be negotiated are additional charges and regulations such as value added tax, duties and tariffs, and customs declarations.
Third, don’t forget to update your shipping and pricing policies. Selling abroad is costly in order to ensure that appropriate steps are taken to charge and estimate your customers for foreign shipment.
Another thing you have to deal with is how big your shipments are. Upon starting your business you can build a good relationship with your carrier account manager. Doing so will profit both of you as discounts on shipping to your company.