This is a YouTube video titled "How To Offer Free Shipping on Your Ecommerce Store & Still Make a Profit – Episode 3" published in August 2019. The content is a single-speaker presentation providing detailed tips on selecting shipping carriers and strategies to maximize profitability in ecommerce shipping, including hybrid shipping services, regional carriers, local couriers, online shipping tools, and avoiding residential surcharges. The video is part of a series aimed at helping online sellers optimize their shipping costs.
Welcome to the third episode of the Ultimate Guide to Profitable Free Shipping. This week we will talk about different shipping carrier options to increase profitability. You simply cannot run your online business without shipping carriers. They are the ultimate cogs in the machinery that delivers the product to customers. There are so many options across and within carriers that selecting the right carrier and using the right service can take up a lot of your time and energy. In this episode, we list out five options you should pursue to maximize your profitability in shipping number 11 take advantage of hybrid shipping services FedEx and UPS are great at long distance logistics with their freight infrastructure. On the other hand, USPS has a well oiled last mile delivery network thanks to the friendly neighborhood mailman. Both have their own strengths and weaknesses. With hybrid services like UPS SurePost and FedEx SmartPost, you can get best of both worlds. Hybrid services are a great example of how competitors can work together. UPS and FedEx haul the packages over long distance and then hand hand it over to your USPS mailman for last mile delivery. This collaboration saves real money making it possible to charge less, especially for packages in two to ten pounds criteria. You as a seller end up saving up to 50% in shipping rates, but since there is no fast shipping guarantee, you have to choose between savings and fast shipping. Number 12 consider a regional carrier if you've got considerable volume in a specific region, look beyond FedEx and UPS. There are carriers that operate in specific regions only, such as On Track in Pacific Northwest, Eastern Connection on the east coast and Lone Star in Texas. They specialize and operate in a smaller area so you get better rates and excellent service within the region. They can provide same day or next day delivery options for deliveries that usually take a couple of days through national carriers. Since they have a smaller base of customers and fewer packages to handle, it is not uncommon for them to provide later pick up time and earlier deliveries. Number 13 support local courier Services A huge proportion of the urban population uses on demand delivery services such as Instacart and Postmates. These are local courier services that offer instant delivery from local businesses at your doorstep. So if you have a fulfillment center in an urban area and are willing to hand out packages during business hours, you can do it too. Businesses usually pay a fee for shipping orders delivered instantly, but in a whole new dynamic, customers are willing to pay extra too for instant gratification. Hence, the burden of shipping cost is split between a seller and buyer, saving you some extra dollars for the instant deliveries you offer. 14. Use online shipping by Carriers when you are just starting out as an online seller, shipping is a hassle. You get your orders, pack them in, and lug them to the carrier offices to be shipped online. Shipping is an easier alternative for sellers who are new to E commerce and haven't reached the volume to Invest in shipping. SoftW. You can print your shipping labels online at home and get parcels picked up right at your location. With USPS, you can save up to 40% in costs for packages heavier than 2 pounds. It's less expensive to go with UPS or FedEx, you have to drop off the packages, but you can save up to 50% just by creating an account online and printing labels yourself. Number 15 Avoid residential addresses Surcharge Packages delivered at a single residential address are much less than packages delivered at a commercial building. For this reason, UPS and FedEx charge you an extra surcharge when the items end up at a residential address. You can avoid this surcharge by choosing the right service for delivery. For example, FedEx ground is cheaper than FedEx home delivery. But if you ship all your items with FedEx ground, the surcharge on residential deliveries will end up costing you more than FedEx home delivery. Start by asking the customer to identify their address type. It may not be accurate every time, but will make your life that much easier. Alternatively, there are shipping software solutions that classify address automatically. To summarize third episode 11 take advantage of hybrid shipping services, 12 consider a regional carrier, 13 support local courier services, 14 use online shipping by carriers and 15 avoid residential address surcharge thanks for watching the third episode of our series. If you enjoyed our content, please share this post with a friend or colleague who might benefit from this series. Subscribe for more such content and keep an eye out for episode four next week, in which we will share how to make free shipping profitable with even more useful tips. And lastly, sign up to our newsletter for even more awesome content delivered right to your inbox. See you next time.
