If your business does a lot of shipping, your small business has a lot riding on the shipping strategy you choose to follow.

A well-planned small business shipping strategy will ensure you can consistently meet your goal of items arriving damage-free and on time, which will help keep your customers happy.

The other thing a smart small business shipping strategy will do is make it possible to deliver on your customer service promise as cost-effectively as possible. 

There’s much to consider if you want to develop the best shipping for your small business. Let’s get started.

A "parcel," also known as a "small package," is a boxed or enveloped individual shipment weighing less than 150 pounds. Parcel shipping is the transport of goods contained in small packages. Parcel transport is handled by companies known as “carriers.”

These carriers specialize in providing time-definite, cost-effective, and swift delivery services. There are four major carriers in the United States, - the United States Postal Service (USPS), FedEx, UPS, and DHL.

The growth of e-commerce is a significant driver of the increasing volume of parcels being shipped. Between 2014 and 2018, global parcel volume doubled from 43 billion to 87 billion, marking a 104% increase in just five years. To put it in perspective, more than 2,700 parcels are shipped every second worldwide.

Knowing what your average shipping volume is each month will influence the decisions you will need to make.

Are you shipping less than 100 packages per month? If so, managing your shipping needs in-house is probably the most efficient and cost-effective small business shipping solution. 

Do-it-yourself shipping means that you or someone who works for you will have to be responsible for printing labels and dropping off packages at your local USPS post office or carrier location.

Shipping over 100 items per month or dealing with high-volume shipping during the shopping season? Then managing your shipping needs in-house is likely NOT the best use of your internal resources and budget. 

Knowing your shipping volume can also give you leverage. If your volume is substantial or steadily increasing, you can use this factor to negotiate better shipping rates from the carrier you are using.

The bigger and heavier your packages are, the more they will cost to ship. That’s why it’s essential to determine what the smallest, lightest package can be without compromising on the level of protection needed to prevent the item from being damaged while in transit.

For example, you may realize that some small and light items don’t need to be shipped in a box. Instead, the best shipping solution for your small business would be to deliver them in an envelope or polybag.

And don’t forget to consider the packing materials you use. If another material is lighter and provides the same level of protection, consider switching to it so you can lighten the overall weight of the package and shave some cost off the delivery charge.

Image Source: https://www.nextdayflyers.com/packaging-dos-and-donts

For domestic packages, the weight is typically measured in pounds (lbs.). If a package has any fraction of a pound, it must be rounded up to the next whole pound. For example, 9.1 lbs. must be rated as 10 lbs.

For FedEx and UPS, the maximum allowable weight is 150 lbs. For the USPS, packages should not exceed 70 lbs.

Package dimensional (DIM) weight is a factor that applies to packages with low weights relative to their size. DIM weight is calculated using a specific formula: (length″ x width″ x height″) divided by a carrier-specific number. When the DIM weight exceeds the package's actual weight, the DIM weight is used as the billable weight for shipping.

Your packaging can serve multiple purposes for your small business.

First and foremost, the number one job of your packaging is to protect your items while they are being shipped.

Don’t cheap out on the protectability of your packaging. If the item purchased arrives fast but is damaged due to the inferior quality of the packaging, your disappointed customer won’t care about your speedy delivery.

Small business owners are always looking for ways to reinforce their brand.

Customized packaging seems like a natural small business shipping solution for this. You can go this route, but customized packaging that features, for example, your company logo printed on it, will be more expensive than plain packaging. Consider alternatives. For instance, you could use plain packaging but affix a sticker with your company logo.

Using plain packaging can be as simple as recycling packaging from items your small business has received. If you don’t have any plain packages on hand, you can order them online. To save even more money, buy your plain packaging in bulk to reduce the unit cost.

Another option to save on packaging is to get it free from the USPS or carriers like UPS and FedEx. Their standardized, flat-rate boxes can be picked up or delivered to your location. When you’re ready to deliver an item, you just pay the flat-rate fee associated with your chosen package size. 

Note that the choice of packaging, whether a box, envelope, or another type, can influence and potentially alter the shipping rate.

When figuring out how much to charge small businesses for shipping their packages, the USPS and carriers measure the distance the package needs to travel by using geographical zones. The USPS has eight geographical zones in the continental US, while UPS and FedEx have 7.

The amount any of these services charges you depends on how many zones your package passes through to reach its destination. The more zones, the higher the cost of shipping. That’s why reviewing how many zones your deliveries are traveling through is a good idea. If it’s a lot, setting up a second location for fulfillment might be the best shipping solution for your small business. 

For example, if you’re located on the west coast and, after review, realize that 45% of your shipments last year went to the east coast, it may be cost-effective to set up a second fulfillment center on the east coast. Doing this would reduce the number of zones the east coast orders would have to travel through and, as a result, reduce your shipping costs.

When it comes to shipping methods, there are several options available, each catering to different needs and preferences. 

1. Handwritten forms: FedEx and UPS offer "Airbill" and "ASD" (air shipping document) forms, which serve as an all-in-one package for your shipping needs. They include an address label, tracking label, and shipping record, making them super convenient. These forms, used specifically for Express services, are an excellent choice for remote employees or those shipping while on business trips.

   

2. Carrier-provided cloud software: If you prefer the convenience of digital solutions, carriers like FedEx and UPS offer cloud-based software. This lets you print shipping documents and labels from your PC in a secure online environment. Many of these solutions are free and work well for organizations that prefer decentralized shipping. Look into options like FedEx Ship Manager, UPS CampusShip, or USPS Click-N-Ship.
3. Carrier-provided premise software: Windows-based software comes into play for more centralized shipping operations. This type of software is often used in settings like mail/shipping centers or warehouses. Examples include UPS WorldShip and FedEx Ship Manager Software. These are perfect if you need more control over your shipping process.
4. Third-party solutions: If you're looking for versatility, third-party solutions have you covered. Whether in the cloud or on-premise, these solutions are often offered by industry leaders like Quadient. Many of them are "multi-carrier," meaning they provide a single platform to ship via FedEx, UPS, DHL, or the USPS. This can streamline your shipping process and save you time and effort.

 So, which method suits your shipping needs best? Remember, it's all about making the process as smooth as possible for you and your customers.

Shipping labels are an essential part of the shipping process. They ensure your package reaches its destination smoothly. 

Here's a breakdown of what you need to know about shipping labels.

To send a package, you'll typically need to print and attach a shipping label unless you're using an Airbill or ASD. These labels are usually around 4 inches by 6 inches in size and contain vital information:

1. Origin/return address: This is where your package is coming from and where it should return if, for any reason, it doesn't reach its destination.
2. Destination address: Of course, this is where your package is headed – the all-important endpoint of its journey.
3. Package weight: Knowing the weight helps carriers determine the shipping cost and ensures your package is handled appropriately.
4. Shipping service: This specifies the level of service you've chosen, whether it's standard ground shipping or an expedited service.
5. Tracking number: This unique number is your lifeline for monitoring your package's journey. You can keep an eye on where it is and when it's expected to arrive.
6. Barcode(s): Barcodes contain all the information needed for quick and accurate processing.

Each carrier has its own specific label template that you must accurately replicate. These templates are crucial to ensuring your package gets on the right path and reaches its destination.

So, when preparing to ship a package, make sure your shipping label is correctly filled out and matches the carrier's template. It's a small but critical step in ensuring that your package finds its way to the right place.

Package tracking is a valuable tool for both shippers and recipients, offering real-time insights into a package's journey. This process relies on the scanning of package barcodes at various key points:

1. Initial possession: It all starts when the carrier takes initial possession of the package. This marks the beginning of its voyage.
2. Arrival at facilities: Every time the package reaches a carrier facility, it undergoes another scan. These scans help track its progress within the carrier's network.
3. Departure from facilities: When the package departs from a carrier facility, another scan is recorded, allowing for a comprehensive view of its route.
4. Loading for delivery: Just before the final leg of the journey, the package is loaded onto the vehicle that will make the delivery.
5. Final delivery (or attempt): The last scan occurs when the package is delivered to its destination or when a delivery attempt is made.

With each scan, data is relayed to the carrier's servers. This data serves as the foundation for internet-based tracking services, which customers can access to see detailed tracking information. This level of transparency offers peace of mind and helps you stay informed about your package's whereabouts throughout its entire trip.

Ask any small business owner who ships a lot of packages each month, and they will tell you there is no single carrier that is the best option for all your shipping requirements.

If using the best option is always your goal, then you’re going to have to rely on more than one carrier. Thankfully, determining which one makes the most sense for a specific package doesn’t have to be loads of work if you use an online shipping platform.

With an online shipping tool like Neoship, shipping rates can be compared in seconds, allowing your small business to optimize the savings on shipping costs. Plus, you’ll be able to print labels and postage, track packages, and manage orders, too.

When sales take off, it’s an exhilarating time for a small business, but if you don’t have a smart shipping strategy in place, it can be an overwhelming and costly time, too.

Think ahead.

Do your homework, analyze your shipping needs, review the options available to you, and fine-tune your process. Invest the time now, and you’ll have a shipping strategy in place that will run smoothly and cost-efficiently even during the busiest of times.