Amazon Shipping BLOG
Small business shipping solutions: Effective shipping strategies and managing costs
Learn how to calculate and manage shipping costs, choose the right delivery speeds for your retail business, and optimise your shipping processes.
Small business shipping solutions
We understand that alongside the daily stresses of running a business, getting shipping right can feel daunting. That’s where a robust shipping strategy comes in, helping you to optimise processes and save money.
In this guide, we’ll take you through important considerations when crafting an effective shipping strategy: calculating shipping costs, managing these costs effectively, and choosing the right delivery speeds to meet your customers’ needs.
In this guide, we’ll take you through important considerations when crafting an effective shipping strategy: calculating shipping costs, managing these costs effectively, and choosing the right delivery speeds to meet your customers’ needs.
How to calculate shipping costs
First, you’ll want to work out your expected shipping costs to avoid any surprises later. Start by determining the weight and dimensions of your products, and assessing your shipping volume.
Use the rates provided by your chosen parcel delivery service to estimate costs, keeping in mind that these rates will vary based on the shipping destination and distance. Some providers offer better rates for higher volumes, so be sure you check if you qualify.
Make sure to factor in the cost of packaging materials, insurance, and labour. Avoid using larger or heavier packaging than necessary, as this will increase costs. Opt for appropriately sized packaging to reduce shipping costs and packaging waste.
Use the rates provided by your chosen parcel delivery service to estimate costs, keeping in mind that these rates will vary based on the shipping destination and distance. Some providers offer better rates for higher volumes, so be sure you check if you qualify.
Make sure to factor in the cost of packaging materials, insurance, and labour. Avoid using larger or heavier packaging than necessary, as this will increase costs. Opt for appropriately sized packaging to reduce shipping costs and packaging waste.
How to manage your shipping costs
Every parcel you ship has a cost, and it’s up to you to decide how much of this cost to absorb and how much to pass onto your customers.
For small businesses selling high-value products, offering free delivery can be a viable option and a strong selling point, but this strategy can be trickier for lower-value items.
If free delivery isn’t an option, you can choose to set a flat rate fee regardless of the order value, or charge the actual cost of delivery. If you’re unsure, consider testing different options to see what your customers prefer. You can always adapt your approach as you understand what works best.
For small businesses selling high-value products, offering free delivery can be a viable option and a strong selling point, but this strategy can be trickier for lower-value items.
If free delivery isn’t an option, you can choose to set a flat rate fee regardless of the order value, or charge the actual cost of delivery. If you’re unsure, consider testing different options to see what your customers prefer. You can always adapt your approach as you understand what works best.
Reliable delivery solutions
When it comes to deciding what delivery speeds to offer your customers, it’s a good idea to consider your product type, customer needs, and cost. For example, small businesses selling perishable items, such as fresh flowers, will require faster delivery speeds.
Over 2023 peak, next-day delivery was the chosen delivery speed for nearly two-thirds of UK consumers, according to a 2024 report by Retail Gazette. That’s not to say consumers don’t appreciate slower speed, lower cost options too. Since 2021, we’ve seen demand for 3-5 day delivery grow by 7%. Giving choice here can help, offering customers both a faster speed option, such as next-day delivery, and a slower speed option, such as 2-day or 3-5 day delivery.
Over 2023 peak, next-day delivery was the chosen delivery speed for nearly two-thirds of UK consumers, according to a 2024 report by Retail Gazette. That’s not to say consumers don’t appreciate slower speed, lower cost options too. Since 2021, we’ve seen demand for 3-5 day delivery grow by 7%. Giving choice here can help, offering customers both a faster speed option, such as next-day delivery, and a slower speed option, such as 2-day or 3-5 day delivery.
Ship with us
Navigating the complexities of shipping can be a challenge for small businesses, from calculating accurate shipping costs to keeping up with changing customer needs. By implementing shipping strategies, small businesses can increase efficiency in their shipping processes, better meet customer needs, and maintain a competitive edge. Remember, a well-executed delivery strategy has the potential to cut costs and increase customer loyalty.
We’re here to provide you with practical guidance and delivery support. Getting setup with us is easy - complete your registration today. We’re excited to help you to enhance your delivery strategy and delight your customers.
Check out our blog on ‘How to ship as a small business: Your guide to improving operational efficiency’ for more insights for small shippers here.
We’re here to provide you with practical guidance and delivery support. Getting setup with us is easy - complete your registration today. We’re excited to help you to enhance your delivery strategy and delight your customers.
Check out our blog on ‘How to ship as a small business: Your guide to improving operational efficiency’ for more insights for small shippers here.
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