A well-thought-out shipping strategy can help streamline operations, reduce costs, improve customer satisfaction, and ultimately, drive growth.

How to Build a Shipping Strategy for Small Businesses

Shipping is a crucial part of running a successful small business, especially in today’s e-commerce-driven world. A well-thought-out shipping strategy can help streamline operations, reduce costs, improve customer satisfaction, and ultimately, drive growth. Here’s a comprehensive guide to building an effective shipping strategy for small businesses.

1. Understand Your Shipping Needs

The first step to building a shipping strategy is to assess your business’s unique needs. Consider the following factors:

Product Types: What kind of products are you shipping? Fragile, bulky, or perishable items may require special packaging or handling.
Order Volume: Are you shipping a few orders a week or hundreds? High-volume shipping might offer bulk discount opportunities with carriers.
Customer Expectations: Do your customers expect fast, same-day delivery, or are they content with standard shipping times? Your target market influences the speed and options you need to offer.

2. Choose the Right Carriers

Once you understand your shipping needs, the next step is to choose the right carrier(s). Some small businesses may benefit from working with multiple carriers to cover different shipping needs. Consider the following when choosing a carrier:

Shipping Rates: Compare rates between carriers like USPS, UPS, FedEx, DHL, and regional carriers. Pay attention to rates for both domestic and international shipments.
Speed of Delivery: Some carriers specialize in express shipping, while others may focus on economical standard shipping.
Service Reliability: Ensure the carrier has a reputation for delivering packages on time and in good condition.
Tracking Capabilities: Most customers expect to track their packages in real time. Ensure the carrier provides tracking services that integrate with your business.
Customer Service: Having reliable customer support from your shipping partners is crucial, especially when handling lost or delayed shipments.

3. Determine Shipping Costs

Accurately calculating shipping costs is critical to avoiding losses and ensuring customers are willing to make a purchase. Here are a few pricing strategies to consider:

Free Shipping: Offering free shipping can boost conversion rates, but it isn’t always cost-effective for small businesses. Consider building shipping costs into your product prices or offering free shipping for orders above a certain threshold to balance profitability.
Flat Rate Shipping: Flat-rate shipping offers simplicity. Customers know upfront how much shipping will cost, regardless of the product's weight or size. However, make sure to calculate the average shipping cost carefully to avoid underpricing.
Real-Time Carrier Rates: If your business has a wide range of products with varying weights and sizes, integrating real-time carrier rates into your checkout process may be the best option. This ensures you only charge what the carrier charges you.

REQUEST A DEMO OF OUR SHIPPING PORTAL TO SEE ALL COSTS IN REAL TIME

4. Packaging and Presentation

Good packaging is more than just a protective measure—it’s also a branding opportunity and a way to keep costs down. Here’s what to consider:

Right-Sized Packaging: Use packaging that fits your product snugly to avoid overpaying for shipping larger packages. Carriers often calculate rates based on the dimensional weight (the size of the box in relation to its actual weight).
Branding: Branded packaging can improve the unboxing experience and leave a lasting impression on your customers. Even small touches, like a custom sticker or personalised thank-you note, can make a difference.
Eco-Friendly Options: Many customers today appreciate businesses that prioritize sustainability. Consider using recycled or biodegradable materials for your packaging.

5. International Shipping Considerations

Expanding to international markets is an exciting step for small businesses, but it adds complexity to shipping. Here are a few things to think about:

Duties and Taxes: International shipments often incur customs duties, taxes, and import fees. Make it clear who is responsible for paying these fees—whether it’s the customer (Delivered At Place – DAP) or you (Delivered Duty Paid – DDP).
Shipping Rates: International shipping can be significantly more expensive than domestic, so make sure to accurately calculate rates before expanding.
Customs Documentation: Carriers usually help with customs paperwork, but make sure to fill out all necessary forms to avoid delays.

Read our article on GOING GLOBAL.

6. Offer Multiple Shipping Options

Giving customers choices is essential to providing a positive shopping experience. Consider offering:

Standard Shipping: Affordable, slower shipping for customers who are more price-sensitive.
Expedited Shipping: Faster, more expensive options for customers who want their products quickly.
Local Delivery or Pickup: For businesses that cater to a local market, offering same-day local delivery or in-store pickup can set you apart from competitors.

7. Monitor and Adjust Your Strategy

Shipping strategies are not one-size-fits-all, and they should evolve as your business grows. Regularly review your shipping processes to identify areas for improvement. Track key metrics like:

Shipping Costs: Are they eating into your profits? Can you negotiate better rates with carriers? Contact us to see ALL available carriers and rates!
Delivery Times: Are customers receiving their orders in a timely manner? If delays are common, consider switching carriers or adjusting your shipping options.
Customer Feedback: Monitor customer reviews and feedback about your shipping services. Are they satisfied with packaging, speed, and cost?

Luckily, the team at London-East Transport have all the tools and know-how you need to build a cost effective shipping plan.

As parts of the InXpress Network – we have access to all the major carrier’s best rates and products, which means you don’t have to rely on just a single carrier OR need to waste time researching new costs – we have it all in one please!

If you would like to speak to the team and find out more, please call us on 0203 600 6006 or email [email protected]. You can also complete a query form online on our website www.londoneasttransport.co.uk.