Shipping is the lifeblood of e-commerce. With over 90% of people in the U.S. buying goods online, businesses need to master product shipping and handling. You'll lose money if orders don't reach your customers on time and in good condition.
Yet, shipping is one of the biggest challenges small business owners face. Without the funds to invest in their shipping infrastructure, most have to turn to third-party shipping service providers.
If you need help refining your shipping strategy, read on. We're sharing a few small business shipping tips.
Amazon has roughly 10 million sellers as of 2023. Most sellers choose Amazon because it's the most prominent e-commerce marketplace in the world and offers a reliable package delivery business.
When you use Amazon shipping, you don't have to worry about all the logistics that come with sending packages around the globe. Amazon will take care of everything from product packaging to last-mile delivery. As a small online business, this service will improve your efficiency and save you money.
Amazon shipping is useful, but what if you don't want to sell on the platform? Perhaps you have an independent e-commerce website or sell on social media marketplaces.
In this case, you have to work out your shipping strategy. This involves knowing how to manage your shipping costs.
You don't want shipping to take big bites from your profit margin. Most sellers transfer the shipping costs to the buyer. You must factor the fee into the product's price if you offer free or low-cost shipping.
Product packaging provides protection during shipping. It also has a big impact on the customer's unboxing experience.
The nature of your product influences your choice of packaging type or material, but one thing is constant: the customer should receive the order in one piece. Broken items will result in returns, which hurts the customer's confidence in your business and increases your operating costs.
You can outsource product packaging to a company that specializes in packaging. It's cheaper and more efficient, but take your time to find a company that will do a good job.
From 2017 through 2022, the U.S. courier and local delivery services industry recorded an average annual growth rate of 6.8%. It's also forecast to grow through 2029 as more businesses outsource shipping.
There are substantial advantages of a professional mailing service, but these companies aren't created equal. You must research and find a company that will serve your business well. Read online reviews and assess the size of the company's infrastructure before signing any contracts.
Shipping can make or break your small business.
If you get a hang of it, you'll make more sales and grow your business. You'll lose customers and run into big losses if you don't. With these small business shipping tips, you now know what you can do to improve your operations.
Explore our business blog for more tips and advice for small businesses.
