For any online retailer, a big expense is the order fulfilment process, which includes the storage, packaging, and transportation of customer orders. It doesn’t matter what product the company sells, this of course exceeds the cost of product purchasing, plus marketing and other selling costs. In short, all of these costs must be managed effectively to enable the company to maintain profit margins. Of course, positive profits are crucial for any online retailer. The good news is that in terms of storage, packaging, and transportation of components, making the right decision is the easiest to influence this list and has the greatest impact on the development of your business.
Below are the three most important transportation cost considerations for online retailers.
1- Stocks. This includes packing material (or dunnage) used to fill and protect merchandise and the box itself.
2- Direct shipping costs. Who you choose to place the order (USPS, UPS, Fed Ex?) And the level of service (ground, next day airline etc) has a huge impact.
3- Your time. Are you using your time most efficiently packing boxes, handling storage, and printing shipping labels? As a small business owner, you have to ask yourself throughout the day, Will what I do now help make my business more successful?
Consumables-USPS, Fed Ex, and UPS offer standard, limited-size packages for free. If the item you are sending is suitable and neither too big nor too small, this is a good choice. It is not efficient to ship large amounts of empty space in every box of goods, and many companies prefer to ship orders through custom or special packaging to better control the customer experience. There are many options for packaging materials used to protect goods, even environmentally friendly (such as Styrofoam “popcorn” and expandable foam made from soybeans). The additional costs of custom packaging materials and cardboard boxes must be taken into account.