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How to Calculate Your Shipping Costs

How to Calculate Your Shipping Costs

You put a lot of effort into making sure your customers have a great experience. You approve the images, you tweak your store, and you write the emails, all with the goal of leaving your customers happy.

But when it comes to shipping, it can feel like you’re handing your brand over to a stranger.

All shipping couriers base shipping rates on a variety of factors including:

Package size

Package weight

Origin country

Destination country

Plus additional shipping options like tracking and insurance.

It can be difficult to compare services exactly as they all offer slightly different options, and every business will have their own unique variables.

Below we have compiled a list of shipping calculators to some of the largest and most popular shipping couriers so that you can begin comparing pricing and options. If you’re based in the US or Canada, you can pay for USPS, UPS, DHL Express, and Canada Post shipping and receive pre-negotiated rates.

Consider your margins

To be successful at ecommerce, you always need to keep an eye on your profit margins. Because shipping represents a significant expense for ecommerce merchants, if you don’t do your research, you could end up losing money on shipping.

Before you finalize your pricing and strategy for your ecommerce store, you should use a chart like the one below to map out all costs associated with getting your products into your customers’ hands. Many ecommerce entrepreneurs are shocked by how quickly the little charges add up. Don’t get caught in the same trap.

Here’s a quick example of how you could calculate your total price to include the cost of shipping.

Cost of product$10
Packaging$0.50
Shipping costs$7.50
Customs/Duties (if you cover them)$0.00
Credit card fee$2.50
Profit margin50%
Total price$30.75

If you have difficulty with shipping, AsiaCommerce has a service to help you. We can also help you to market and sell your products, both a retail product or a product that needs to be sold in a huge amount. We are making it possible for local business leaders to cooperate with the International global market. Besides export service, we can also help you to import, transport, search for foreign products, and handle distribution issues of your company in southeast Asia.

Need help with shipping? We can help you! You can fill the form here: https://asiacommerce.net/package-forwarding-international-dropship/

How to Set Your Shipping Rates and Methods

How to Set Your Shipping Rates and Methods

Before you can ship products, you’ll first need to decide your pricing strategy for shipping. There are several common methods, but your choice should always be informed by the underlying financials of your business.

Offer Free Shipping

Offering your customers free shipping is one of the best ways to reduce shopping cart abandonment. However, as you might suspect, shipping is never free. Someone always has to pay. To make free shipping work, you have a few options.

  1. Increase product prices to cover costs for shipping (customer pays).
  2. You pay the full price of shipping out of your margins (you pay).
  3. Increase prices of products slightly to cover partial costs of shipping (you and your customer pays).
  4. Offer a discount code to certain customers for free shipping.

Additionally, you can also try offering free shipping on a minimum order amount. This strategy can help offset the costs of shipping by helping to increase your average order size, but you’re still the one paying for it out of your margins.

Charge Real-Time Carrier Rates

Another effective shipping strategy is to charge real-time carrier rates for shipping. Ecommerce platforms integrate in real-time with various carriers to generate shipping options and live pricing from various carriers. This allows your customers to choose and pay for the exact service they want.

Charge a Flat Rate

A popular option is to offer flat rate shipping. The best practice for this option is to try and make sure that you don’t drastically undercharge or overcharge your customers. Flat rate shipping works best when you have a fairly standard product line of items that have similar sizes and weights. Flat rate shipping tends to become complicated and less effective if you sell a wide variety of products with different sizes and weights.

Offer local delivery

Another method to consider is local delivery. This is a great option for businesses looking to offer a simple and reliable delivery method to their local customers. When you set up local delivery, you can customize your delivery area using a radius or a list of zip/postal codes. Customers who are within your defined delivery area will be able to select “local delivery” as a shipping method at checkout. Offering local delivery for free over a certain order amount, or offering it for a low cost can help you cut down on shipping costs and get more local customers.

If you have difficulty with shipping, AsiaCommerce has a service to help you. We can also help you to market and sell your products, both a retail product or a product that needs to be sold in a huge amount. We are making it possible for local business leaders to cooperate with the International global market. Besides export service, we can also help you to import, transport, search for foreign products, and handle distribution issues of your company in southeast Asia.

Need help with shipping? We can help you! You can fill the form here: https://asiacommerce.net/package-forwarding-international-dropship/

The Beginner’s Guide to Ecommerce Shipping and Fulfillment

The Beginner’s Guide to Ecommerce Shipping and Fulfillment

You put a lot of effort into making sure your customers have a great experience. You approve the images, you tweak your store, and you write the emails, all with the goal of leaving your customers happy.

But when it comes to shipping, it can feel like you’re handing your brand over to a stranger.

With some thought and planning, however, it doesn’t have to feel that way—which is a good thing, because shipping is a key part of your business. It’s the point where a customer finally experiences your product in person, and it can also represent a major expense in your business, depending on your shipping strategy.

That’s why it’s so important to map out a defined shipping strategy. Since the world of shipping and fulfillment can seem complex when you’re not familiar with it, we’ve got an overview of everything you’ll need to know to make the best choice for your business.

We’ll go over some of the basics of shipping your products and help you understand this complicated topic. We’ll talk about setting your shipping strategy, packaging, provide resources and links to popular carriers, look at tracking and insurance, balancing shipping costs with profitability.

Shipping strategy 101

There are some basics that set a foundation for the rest of your shipping. While you can come back and change each of these later on, as you learn more, these are the key decisions and steps that make up your high-level shipping strategy.

  • Your shipping rates and methods. 

Are you going to pass the full cost of shipping on to your customers or will you offer free or flat-rate shipping to absorb some or all of the cost? How will you get orders from your local customers? By the end of this post, you’ll have more information on how to make this choice for your business.

  • Product weights

To streamline the process, measure and update the weight of each product you sell. Having that information set up will help you get a good sense of your total costs, and pass along accurate prices to your customers.

  • Choose your preferred packaging

 While there’s more to be said about what kind of packaging is right for your products, once you’ve selected it, you can add that information to a shipping application so you can calculate accurate shipping prices.

  • Source your packaging

You can order free packaging or invest in branded packaging if that’s part of your strategy.

If you have difficulty with shipping, AsiaCommerce has a service to help you. We can also help you to market and sell your products, both a retail product or a product that needs to be sold in a huge amount. We are making it possible for local business leaders to cooperate with the International global market. Besides export service, we can also help you to import, transport, search for foreign products, and handle distribution issues of your company in southeast Asia.

Need help with shipping? We can help you! You can fill the form here: https://asiacommerce.net/package-forwarding-international-dropship/

Resources for Businesses Shipping Orders During COVID-19

Resources for Businesses Shipping Orders During COVID-19

COVID-19 has a huge impact on communities and on our economy. Since the quarantine, retailers have closed their locations and people stay home to social distance, there has been an increase in online shopping and package deliveries. In this new normal, businesses are adapting but still using online shopping and package deliveries.

While shipping carriers continue to operate as an essential service, there may be some changes that could temporarily impact the way you fulfill orders. To keep your business moving during these uncertain times, we’ve put together a list of strategies to help you ship orders and communicate with customers.

  1. Optimizing your shipping strategy
  2. Getting products to your customers
  3. Communicating with your customers

1. Optimize your shipping strategy

Free packaging materials

Many carriers offer free packaging for use with a specific shipping rate. Although there is no cost for the materials, you might need to create a free account with the carrier in order for them to send it to you.

Shipping rates at checkout 

Now more than ever, customers are expecting fast and affordable delivery options.

While shipping times can’t be controlled, you can consider pricing options like free or flat-rate shipping. If you choose to offer free shipping, you can include the fee in your product prices, or you can absorb the shipping costs. If you choose to offer flat-rate shipping, customers will pay one consistent rate depending on where they are located.

Save time buying shipping labels

Adding weights for your products and packages will ensure you get accurate label prices and save time when purchasing a label.

2. Get products to your customers

Due to COVID-19, some carriers have temporarily changed their shipping services and policies. Shipping delays should be expected due to canceled flights, governmental decisions, and staff reductions. Consider offering local delivery for customers who are located nearby. 

3. Communicate with your customers

Stay in touch with your customers to communicate shipping delays and encourage engagement through updates and promotional offers.

Communicate shipping delays

Send an email to your subscribers and/or create an announcement bar to share shipping updates with customers on your site. 

Leverage social media

With many people staying at home, now is a good time to communicate using social media. Let your customers know how they can continue to support your business, whether through online shopping, local pickups and deliveries, or with gift cards. You can also share promotional codes to boost sales and communicate safety measures your business is following.

For more resources to help you navigate your business during the COVID-19 health crisis, visit our blog and check out our Instagram account @asiacommerce, or you can join our membership so you can import products easily, just fill the form here: https://asiacommerce.net/import-export-request/

When Is The Right Time to Switch to Outsourced Fulfillment?

When Is The Right Time to Switch to Outsourced Fulfillment?

Most companies begin to fulfill their own orders, while some eventually use a third-party logistics solution as they grow. Thing is, sometimes it’s difficult to know when to switch, especially when you build your own company from the ground up with nothing but personal savings.

Businesses with various sizes can get benefit by using warehousing and fulfillment services. There are variety of companies that offer warehousing and fulfillment services, some of which specialize in smaller or larger-scale operations

However, there are clear signs that it’s time to switch to outsourced fulfillment.

Cyclical or uneven sales

If the number of orders you process fluctuates throughout the year, it’s probably difficult for you to handle to running and staffing your own warehouse. A logistics company will be able to adapt to your needs.

Besides, unexpected spikes in sales can interfere your delivery promise. An expert can handle times when your daily order volume peaks so you can focus on your delivery consistency and make efficient experience every time.

You’re too busy

Source: Freepik

If you’re too busy dealing with order fulfillment and thus distract your growth focus, it’s probably time to outsourcing it. As a business owner, you need to be able to devote time to sales and marketing, expanding to other e-commerce platforms, sourcing new products and ideas, and improving your business for the long term.

Lack of infrastructure

Source: Kit8

If you’re expanding your business geographically, you may outgrow your current infrastructure before you can adapt. Shipping to locations across the country or even the world comes with logistical challenges that increase expenses and shipping times. This can inhibit large-scale growth.

When you outsource to a global fulfillment partner, they’ll be better equipped to serve a growing customer base, leveraging multiple locations, and optimizing fulfillment accordingly.

Third-party warehousing and fulfillment isn’t right for everyone, but if you find yourself in one of these situations, it might be time to start calling around and chatting with logistics companies.

Do you need any help in fulfillment and cross border distribution? With the right fulfillment team, you can really focus on your business and assign operational things to us. All you need to do is fill the form here: www.asiacommerce.net, go to ‘need fulfillment’ section on our home page, then our team will contact you right away! Or just click here to enjoy our fulfillment service