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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/

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

The Benefits of Using Third-Party Logistics

Source: Land-Link Traffic Systems

The clear advantage of using a third-party logistics (3PL) company to outsources fulfillment is that it saves you from having to do the work yourself. But there is a deeper advantage, outsourcing warehousing and fulfillment can have a meaningful impact on your business’s growth.

Avoid long-term leases

Source: Clark Logistic Services

Many logistic companies offer adjustable pricing. This means they’ll be able to adjust to your needs and costs accordingly as you grow or go through slow period. Renting your own warehouse mostly requires more of a commitment.

Bring on the experts

Source: Cole Reports

When you hire an outsourced fulfillment services provider, you’re not only get a warehouse space, but also people who will be responsible for running the fulfillment center. When you fulfill and ship your won orders, you’ll likely need to hire your staff as you expand. Managing staff takes time. If your business is still constantly changes, you may be wary of promising someone a job. Instead, you can outsource the work to a logistics company and let them be responsible for finding and hiring good people.

Each 3PL has a whole team of logistics experts and support staff who will always be there to help you along the way. They maintain all of the labor needed for receiving, inventory management, and order processing and shipping, giving you an advance agility you might not achieve easily on your own.

Use your time to optimize

Source: Time and Date

It is very likely that you don’t start a business just because you are good at packing boxes. Your time is better used to manage and optimize your company, not stuck in the logistics of order fulfillment. When you let someone else handle your logistical details, you can focus on the things that have a greater impact on your bottom line.

Be more agile

Although doing it yourself is mostly free, it can actually cost you in the long run. Consumers mostly expect faster shipping times, doing it in-house less likely meet their expectations and deliver a bad customer experience. Partnering with a 3PL for fulfillment services can benefit you from their effectiveness and buying power leverage on packaging and shipping costs. Some even update you with a real-time stock level and status so you can be proactive.

This extra time can give you and your team to test new strategies, inventory management techniques, and other strategies to achieve rapid growth without worrying about back-end logistics or hiring backlogs.

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 then go to ‘need fulfillment’ section on our home page, then our team will contact you right away!

What You Need to Know About Fulfillment Services

Source: VIA Technologies

Warehousing, shipping, and fulfillment can’t be separated when you begin to establish an e-commerce business or selling products.

Even though making sells is always the exciting part, you need to make sure your products end up in customers’ hands.

There are three options you can choose to make this happen:

  1. Sell your product through a drop-shipper who will place orders for you
  2. Place your order independently
  3. Collaborate with a logistics company that will handle your warehousing and fulfillment

There are certain advantages from packing and shipping your own orders: it’s cheap and flexible. Often times, businesses that are just starting out, and businesses that have extra packaging needs, usually handle their own logistics.

And regardless of age or industry, any business struggling with cash flow will be better off handling things in-house. Sometimes you have more time to spend than money.

But if your business has expanded and growing quickly so you have the cash on hand to outsourced, you may consider for using third-party warehousing and fulfillment.

There are many logistics companies that will store your product and take care of packing and shipping your orders, but not all logistics companies provide fulfillment services such as AsiaCommerce.

But What is fulfillment service?

A fulfillment service is a third-party warehouse that prepares and ships your orders for you. It does this from its fulfillment center. E-commerce fulfillment services are ideal for businesses that don’t want to deal with shipping or have outgrown existing warehousing capabilities to a point where they’re unable to ship orders themselves anymore.

If you’re scaling fast and looking to optimize your fulfillment strategy, working with a provider that offers a central view of your data and smart inventory allocation across multiple warehouses will give you the most flexibility. To learn more about the AsiaCommerce fulfillment services, visit us here

What does a fulfillment center do?

Source: All Things Supply Chain

While each fulfillment center operates slightly differently, they all accomplish the same thing: they act as a command center for all your order prepping and shipping needs. Fulfillment centers also double as warehouse spaces for inventory storage, allowing you to hold onto product.

Some fulfillment service providers have multiple fulfillment centers, allowing them to serve different geographic locations more quickly than if they were to have just one. This allows e-commerce companies to deliver fast and affordable shipping to a diverse customer base.

What do fulfillment services cost?

Source: Shipware

Fulfillment services typically charge by the hour or per unit/pallet. Providers add up costs for receiving, storage, pick and pack, shipping, kitting or bundling, returns, custom packaging, gift services, and setup. They then apply transactional (e.g., receiving, shipping) and recurring (e.g., storage) fees.

If your business has big goals, fluctuating sales, but not enough time to take care of things in-house, AsiaCommerce will help you! Just fill the form here

How to Develop Your Business with Export

Source: ullstein bild / Contributor | Getty Images

Many small and middle-class companies want to develop businesses by exporting goods to larger markets. But only a few entrepreneurs thought of trying to export in order to expand the range of their markets. Why are exports often unthinkable and passed up by business leaders? Probably because not many entrepreneurs know how to export goods. The procedures, documents, and permits that have to be met make many think that export is difficult. It is actually easier than import that needs more rules to fulfill tax payments. 

Tax revenues and imports also have different regulations. When we start importing, we need to pay taxes for almost everything that we import. Whereas when we export, not all products are taxed exports and customs. Only a few of the products are taxed on exports and customs. The products are timber, rattan, and vegetable oil. For clothing, fish, corn, bananas, food, and electronic items, it is now free of taxes and customs. 

What needs to be prepared before we start exporting?

Before exporting your products abroad, you need to prepare items for packing and distributing to the container. When the goods are ready you need to wait for the ship’s schedule and submit a PEB to the customs office. After obtaining approval to export, you may be able to take goods up to the port to be transported to the target country. But every exported item still has its own rules to be met by exporters, depends on where your country is.

Then how do you plan to develop a business with exports? Exporting products out of Indonesia is almost the same as selling products out of where your business stands. Only exports require some documents, permits, and processes that must be passed through.

To begin the first export move in your business, you can start by following these steps:

  • Try to find out if the product you will export is forbidden to be exported by your government or not
Source: Master Link Express

You can access the single window system in your country to find out which goods can be exported and imported and also the tax returns. Don’t forget to make sure the item you export is allowed to enter the country where the product will be imported from Indonesia, so you can see if the item is included in the import ban or not.

  • Find your product buyer from overseas
Source: The Weekly Times

You could do it in a variety of ways like making a marketing team, setting up a website to introduce your company and product catalog. You could also load your items on international e-commerce or e-commerce that is commonly used in your destination country.

  • Prepare the items and documents
Source: Cornwalls

After you get a purchase or order of your buyer, prepare the items and documents. Then you should notify the customs authorities by bringing in the export declaration documents which consist of an invoice, packing list and other complementary documents

  • Do errands to the destination country
Source: ASEAN Briefing

Once it’s approved by customs, you’ll get the export service memorandum where your goods have been approved into export goods. From here you can already do errands to the destination country.

  • Insured your items
Source: Magyar Posta Zrt.

Don’t forget to insured your items if your contract with the buyer is CIF.

If you have difficulty with exports, AsiaCommerce has a service to help you export. 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 your export? interested to export to South East Asia or from South East Asia? We can help you! You can fill the form here: https://asiacommerce.net/import-export-request/