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2021-04-09 13:50:18How To Run Your BusinessEnglishNo matter how much or how little you ship, you have a few options to choose from when it comes to shipping carriers. Let's take a look.https://quickbooks.intuit.com/au/resources/au_qrc/uploads/2021/04/shipping-goods-small-business-feature-au.jpghttps://quickbooks.intuit.com/au/resources/how-to-run-your-business/shipping-options-and-tips-for-small-businesses/Shipping options and tips for small businesses | QuickBooks Australia

Shipping options and tips for small businesses

7 min read

Ecommerce is on the rise. Due to the coronavirus, online grocery and retail shopping have increased sharply, and experts don’t expect the popularity of online shopping to drop once the pandemic has passed.

Many small businesses across the country have already begun moving towards online sales. For brick and mortar businesses, dipping into ecommerce allows them to access a much larger pool of consumers while keeping their employees and customers safe.

But launching an online store is only half the battle. Online orders need to be shipped quickly and securely. And if you haven’t built a shipping strategy, shipping orders might be easier said than done.

Before you ship, you need to determine which shipping carrier is the right fit for your business. Australia Post, StarTrack and DHL Express are common shipping carriers, but they’re not your only options.

Shipping carrier options for small businesses

No matter how much or how little you ship, there are many options to choose from when it comes to shipping carriers.

Small businesses shipping small orders

Many carriers offer shipping programs for small businesses. Some allow you to buy postage and print mailing labels online. From there, you can schedule a pickup or drop off your packages to save money.

There are benefits to each carrier, so compare costs and, when possible, speak with a shipping advisor.

Ecommerce sites like eBay allow you to buy and print shipping labels directly on site. eBay offers shipping discounts plus volume discounts—the more you ship, the more you save. Most ecommerce sites like these offer cheaper and easier shipping for businesses.

Shipping more than 100 orders per month

It might be time to consider outsourcing your shipping if you’re:

  • Shipping more than 100 orders per month.
  • Consistently shipping far away.
  • Unable to handle order fulfilment in-house.

If the above applies to you, outsourced fulfilment can save you time and money. When you outsource shipping and order fulfilment, a third party stores your inventory, then packs and prepares your orders for shipping. Your fulfilment service will have multiple warehouses, making it faster and cheaper to ship far away from home. Plus, they take the burden of packing orders off your shoulders, allowing you to get back to what you do best. Finally, a small business fulfilment service increases your capacity to handle more orders and grow your business.

As with shipping carriers, when it comes to order fulfilment services, you have a few options. Fulfilment by Amazon allows businesses to sell products on the Amazon platform. Products are stored in Amazon’s fulfilment centres, then picked, packed and shipped by Amazon. Do some research and look for a fulfilment service that fits your business needs and budget.

Shipping in bulk or very large packages

Businesses shipping lots of packages all the time, or shipping large, heavy packages, might consider freight shipping. Freight shipping allows you to ship heavy packages (over 68 kilograms) or bulk packages by land, air or sea. Businesses typically use freight shipping to ship products from the manufacturer to the fulfilment centre or a retailer.

Many freight companies offer three freight shipping methods: full truckload, partial truckload and less-than-truckload. For partial or less-than-truckload shipments, you split the cost of the shipment with the other parcels onboard. This makes freight shipments an affordable option for businesses that can’t quite fill a whole truck.

As always, it’s a good idea to shop around. Compare shipping costs and services before committing. Some carriers offer temperature-controlled freight shipments. Others allow you to schedule and manage your freight shipments online. Choose the freight carrier that works for you and your customers.

Four things to consider before shipping your first order

If you’re new to ecommerce, there are a few shipping technicalities to consider before launching your online store.

1. Packaging

When it comes to packaging your products, presentation is key. Think about the unboxing experience you want your customers to have when they receive orders from your shop. At the very least, they expect the product to arrive clean and intact. Additionally, shipping your products is a great opportunity to surprise and delight your customers with personalised packaging while showcasing your brand.

The type of packaging you use to ship your products depends on the products you’re selling. Some items will require a sturdy box filled with packing material. Others can be shipped in a simple mailer bag.

The packaging itself can be expensive. Here are a few tips to help you save money on packing materials:

  • Buy shipping materials in bulk. It might be more expensive upfront, but you’ll save money per unit on the back end.
  • Use flat-rate boxes. Flat-rate boxes are a great option for smaller, heavier items. Australia Post offers flat-rate shipping options.
  • Get free shipping supplies. Most mail carriers offer free shipping supplies. All you need is an account. Supplies can be ordered online for delivery or pickup.

2. Destinations

Ask yourself how far you’re willing to ship orders. In general, the further the package has to travel, the more expensive the shipping will cost.

If you plan to ship orders internationally, there are a few stipulations to keep in mind. Some products are forbidden from entering some countries—and they’re not always obvious. You probably know that you can’t ship explosives or gasoline. But did you know nail polish and perfume are on the internationally prohibited list as well? Or that you can’t ship motor cycle helmets to New Zealand? Check international shipping restrictions before you ship.

Keep in mind that international shipping often comes with additional taxes, duties and documentation, like customs declarations. Plus, it’s more expensive. If your items aren’t priced for international shipping, you could lose money on the sale.

3. Speed and cost

Consumers have come to expect both free and fast shipping options—an expensive combination for small businesses diving into ecommerce. If you want to please your customers without breaking the bank, try the following:

  • Offer free shipping with minimum orders. Offering free shipping on a low-cost item could cost you money on the sale. Minimum order deals drive up the amount a customer spends in your shop and ensure sales cover shipping costs.
  • Offer flat shipping rates. A flat shipping rate of $10, for example, means your customers pay $10 for shipping no matter how much or how little they buy. You might end up paying additional shipping on larger orders, but the smaller orders that cost less than $10 to ship will help you break even.

4. Volume

The number of orders you ship and how often you ship them will help you determine your shipping strategy. Your shipping strategy defines how you’re going to get orders to your customers and which shipping carrier you’ll use.

Small businesses shipping just a few orders a week can likely handle order fulfilment in-house. This means you receive orders, prep the orders for shipping and hand them off to your shipping carrier yourself. Businesses sending large packages, or more than 100 orders a month, might consider outsourcing shipping and fulfilment to save time and money. In any case, shop around and work with your shipping carrier to determine the ideal shipping strategy for your order volume.

Shipping made easy

No matter where you are in your ecommerce journey, shipping is an integral part of your success. Late or damaged products can damage your reputation, whereas fast, free shipping can skyrocket your success. As the popularity of ecommerce grows, there’s never been a better time to embrace the internet and build a solid shipping strategy.

This content is for informational purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state, territory or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Financing Inc. (d/b/a QuickBooks Capital) does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Financing Inc. (d/b/a QuickBooks Capital) does not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Readers should verify statements before relying on them.

We provide third-party links as a convenience and for informational purposes only. Intuit does not endorse or approve these products and services, or the opinions of these corporations or organisations or individuals. Intuit accepts no responsibility for the accuracy, legality or content on these sites.

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Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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