Small business help shipping concerns costs and packaging

Posted: 02/09/2007--25/11/2008 || Rate this Article: 3 || Views|| Sign In || Register ||Hello Guest

For any company that does any part of their business by mail, shipping is a major concern. What method should you use to ship your merchandise, how much will it cost, and where will you acquire your supplies?

The savvy business owner should be aware that in this internet age, many customers are quite well-informed as to what actual shipping charges are C that is, transit charges, charged by either the postal service or courier companies, not including any packaging or handling charges. These customers have become suspicious of shipping charges that are much more than the actual transit charges. With so many inexpensive packaging sources available, it is possible C and prudent C to keep your costs and therefore charges to a minimum.

First, we should define the shipping options that are open to the small business owner. The most commonly used is the postal service. The USPS offers a variety of services, from media mail, an inexpensive alternative for shipping books, CDs, and other media, to parcel post for other items, to priority mail and even overnight shipping. Users of the USPSs lower cost options must provide their own packaging, whereas complimentary packaging is available for priority mail or overnight shipping. One can register for free at the USPS web site and order supplies to be shipped to ones location. The USPS also offers a variety of add-on services, including delivery confirmation, insurance, and return receipt. In fact, by using a program like Endicia.com, one can print postage on ones own printer and receive delivery confirmation on media mail and parcel post items for a discounted rate, and on priority mail packages for free.

The two best-known and largest small-package couriers are Federal Express and United Parcel Service, known familiarly as Fedex and UPS, respectively. Both offer services that are similar to those offered by the USPS. Instead of parcel post, UPS and Fedex offer ground shipping, for which the shipper also has to supply his own packaging. They then offer a variety of quicker shipping methods, including three-day, two-day, overnight economy (next business afternoon), and overnight express (next business morning). For these services the couriers offer several complimentary packaging options. By opening an account with one of these companies one can have these packaging supplied delivered to ones door. The couriers also offer daily pickup at ones business for a weekly charge, or one can call to have air packages picked up on an occasional basis, for a service charge that will be added to the cost of the package. Alternatively, one can drop ones packages into drop boxes that are located at various locations in most towns.

There are also several smaller courier services, including Airborne and Roadway Parcel Service (RPS). The services that they offer are nearly identical to those of UPS and Fedex.

Making the choice between using the USPS or a courier service can be difficult. USPS rates for all classes of service are lower than those of the couriers C sometimes significantly lower. The USPS can also be convenient if one prints postage on ones printer; however, if one stands in line each day then just getting ones packages into the mail can represent a significant investment of time. Having packages picked up at ones business or dropping them off at a couriers drop box or office location is usually quite convenient. On the other hand, the higher rates must either be passed on to ones customers or taken out of ones bottom line. One must also consider what level of tracking is needed for ones packages. The couriers offer step-by-step tracking for each package that is shipped; this service must be purchased as an additional service from the USPS, and then will not necessarily provide day-by-day location information for a package.

If one decides to use a courier, one should make an estimate of the number and types of packages that one will send per week. Be as precise and realistic as possible. Then call a few of the couriers to get quotes. One can often get discounted rates based on volume. Rates will also differ for packages shipped to other businesses as opposed to packages shipped to residences. Sometimes business/professional organizations negotiate group rates for their members, so one should explore that possibility.

If ones business ships large packages, particularly several large packages to the same location, a freight transportation company may be a better choice. A couple of well-known freight companies are AAA Cooper Transportation and Old Dominion Freight. A search in ones yellow pages should uncover more local freight options.

In choosing from the many shipping choices available to the small business person, it is important to explore ones options, make a decision C and then not fret about it too much. Spending the time to make the best shipping decision overall is a wise investment, but spending much more time to try to get the lowest rate for each and every package is not.