Shipping Strategy for Your Bussiness
When you start an ecommerce business, there are many important, practical aspects that have to be resolved. One of the most obvious ones is an effective shipping plan that will allow you to successfully deliver your products to customers without losing your head and too much time.
Your shipping strategy should be cost-effective and sustainable. It also has to be tailored for your business model and budget. When it comes to shipping products, you can decide on flat-rate shipping. Is it something worth considering? Let's find out.
What Is Flat-Rate Shipping?
Flat-rate shipping is a shipment model in which you pay a fixed price for your packages regardless of their weight (up to the established weight limit), size, and destination (although the last two can influence the costs depending on the shipping carrier).
The significant advantage of flat-rate shipping is that it simplifies things for the companies. You're not forced anymore to calculate shipping costs for every individual shipment - you already have this information. It can be a good solution if you're looking for a way to standardize the shipping processes, but it's not by any means the perfect answer for every business.
Offering flat-rate shipping can be a good incentive for your customers, too, although it's not always that simple. It's common that with flat-rate shipping, your clients don't have access to any additional information besides the fixed prices. They might not know about additional payments like taxes or fees, which is especially important with international shipping.
That saying, flat-rate shipping is a sensible option for many ecommerce businesses. But is it better than standard shipping?
What Are the Differences Between the Flat-Rate Shipping and Standard Shipping?
Standard shipping is probably the most common out of many different shipping options available for retailers and private individuals. Regular shipping services usually mean lower prices and more factors that add to the final costs.
The big difference between standard shipping and flat-rate shipping is that in the first shipping model, measurements like weight, size of the parcel, as well as shipping zones all contribute to the final price. This means costs can vary from package to package, which can be problematic when you ship a large number of parcels.
With flat-rate services, you pay the same price for all your packages that do not go beyond the weight limits of your carrier. Calculating the shipping costs is much easier, but the costs themselves don't necessarily have to be lower.
It's also worth mentioning that some carriers, like FedEx or USPS, require using their boxes with flat-rate shipping. This obviously can be a downside for ecommerce brands that often use their packaging as a part of their marketing strategy (for example, by putting their logo on it). You don't have this problem when you choose a standard shipping service.
Is Flat-Rate Shipping Overall a Cheaper Solution?
Like always with ecommerce shipping, it depends. Although there is a widespread opinion that fixed prices allow companies to save up on their deliveries, it doesn't have to be the case for everyone. Yes, your business can lower the shipping costs with flat-rate shipping, for example, when you're shipping a lot of heavy packages to many shipping zones, including international shipping.
But in a case where most of your shipping happens in one shipping zone, and your parcels are small and light, flat-rate shipping costs may not be that cost-effective, as with a standard shipping method. It's essential to compare flat-rate pricing to the standard shipping costs and calculate which model is more profitable for your ecommerce business.
Flat-Rate Shipping Options with Different Shipping Carriers
FedEx Flat-Rate Shipping Services
FedEx flat-rate shipping is called FedEx One Rate. In practice, FedEx offers companies different rates, depending on the size of your parcel and the distance your shipment has to travel. The one factor that doesn't influence the shipping cost is the weight of the packages, as long as it fits within the weight limit.
USPS Priority Flat-Rate Shipping Options
USPS is a US postal service. USPS Priority Mail and Priority Mail Express are the two services that allow you to ship at fixed prices. Shipping rates are connected with the size of the parcels, not the weight or shipping zones. USPS Priority Mail flat-rate shipping requires using USPS boxes.
UPS Simple Rate
UPS allows the usage of your own box in their flat-rate service, which is an interesting option for many companies. The carrier has some restrictions regarding the size of the packages, as well as the weight limit though. When using your own packaging, you have to calculate which UPS Simple Rate category your parcels belong to. Shipping zones and the weight of your package don't influence the shipping charges.
What Is the Delivery Time in Flat-Rate Shipping?
There is no one unified delivery time in flat-rate shipping, so it's worth finding out what particular carriers offer in this matter. It is worth mentioning that flat-rate shipping usually takes less time than standard shipping. With many carriers, the fulfilment process takes no longer than 3 business days (including international shipments).
Is Flat-Rate Shipping the Best Shipping Method for the Ecommerce Businesses?
Flat-rate shipping is one of the most common shipping methods for companies, and it's definitely for a reason. This shipping model will be the most effective when you have a bigger business with many customers living in different places in the country or the globe.
It's an efficient solution for businesses that ship a lot of parcels of various weights and want to cut the shipping cost and simplify the whole shipping process. Of course, other factors come into play when choosing the best shipping method, so there is no short answer to that question.
Ship Easier with Packlink
Now you can fulfil all your shipment needs easier and faster than ever before. Packlink gives you all the tools to choose the best solutions for your company.
All you need to do in order to find the best carrier for you is to specify the dimensions of your package, as well as the address of the destination and the place from where the package will be shipped. You'll get an instant quote with the price estimate from many carriers.
Additionally, you can determine your delivery day and speed. Packlink will match you with the carrier that will offer you the best shipping prices and solutions that'll make the shipping fast, easy, and cost-effective.
With Packlink, you can ship domestically and internationally. We work with many carriers to ensure the best offers and the quality of services for our customers.
Many companies benefit greatly from our premium service Packlink PRO. Now you can easily manage all your shipments from one platform. It's not only convenient, but it saves you a lot of time and effort. Track your packages and manage new shipments with Packlink PRO.
Try Packlink for your shipping needs and focus on what's most important to you - your company and customers.