An Essential Guide to eCommerce Shipping
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Transcript of An Essential Guide to eCommerce Shipping
An Essential Guide to eCommerce Shipping
Contents
01 INTRO
02 THE CARRIERS
03 DOMESTIC SHIPPING
USPS®, FEDEX®, UPS®, REGIONAL CARRIERS
08 INTERNATIONAL SHIPPING
I-PARCEL™, POSTAL QUALIFIED WHOLESALERS (PQW)
10 ONLINE STORES AND ECOMMERCE CARTS
12 SHIPPING SUPPLIES
14 SHIPPING INSURANCE
16 WHAT IS SHIPPING SOFTWARE? DO I REALLY NEED IT?
18 SHIPPING TERM GLOSSARY
20 WANT TO SAVE HOURS A DAY ON SHIPPING?
AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
IntroductionDo you remember when you thought shipping was easy? Back
in the days when it meant going to the post office, or dropping a
stamped letter in the mail box? Now that you’re selling online and
you’re shipping more than the average person, you’ve realized
that shipping is one of the most challenging and mind-numbing
aspects of selling online.
That’s why we created this shipping guide.
The goal of this guide is simple. We want to educate you about
shipping so that it minimizes stress and ensures you’re shipping
in the most efficient way possible. Because we (ShipWorks) have
been working with all of the major U.S. shipping carriers and 40+
online shopping carts for nearly a decade, we have a pretty good
grasp of the ins and outs of shipping items sold online. This guide
will cover the basics of shipping in the U.S. and give pro-shipping
tips. By the end, you’ll be saving time and money while growing
your ecommerce business.
Let’s get started!
1AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
The CarriersWe’re often asked which carrier is the best. Unfortunately, there
is no cut and dry answer to that question. The answer depends
on three key things: 1) what you’re shipping (size and weight of
package), 2) where it’s going, and 3) when does it need to arrive
at its destination. Once you fill in these three blanks, the best
carrier choice becomes more obvious.
To begin, let’s talk a little about the carriers. You may think
of only three to choose from—USPS, FedEx, and UPS—but
that’s only the beginning!
2AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
Domestic Shipping:
U.S. Postal Service® (USPS®)
Whether you call it the Post Office™, US Mail, or USPS,
the United States Postal Service is probably the shipping
service you’re most familiar with. The USPS has some
great benefits such as convenience, free supplies, free
pickup and it has direct partnerships with many online
retail sites, like eBay.
How to Ship with USPS:There are two basic options when shipping with USPS:
1. Ship it from the Post Office. Visit your local Post Office
with your item boxed up and ready to ship. When you take
the box to the counter, they’ll weigh your package(s) and
tell you how much postage you owe. Once you pay, they’ll
make sure it reaches its destination.
2. Ship it from your home. If you want to avoid waiting in line
at the Post Office, you can print postage and ship items
from home. You will need to package the item in a box,
weigh it, and measure the length, width and height. Then,
visit USPS.com and create an account. The site will walk
you through all of the next steps and will allow you to print
postage from your computer’s printer. The last step is to
drop the box off at the Post Office or request a free pickup
from USPS (At least one item being mailed must be sent
Priority Mail Express, Priority Mail, or Flat Rate to be
eligible for free pickup).
USPS Services:USPS has numerous delivery services, and we’ve highlighted the
main ones (chart below). This chart is not all inclusive, so if you have
questions, please check the carrier’s website for complete details.
USPS Rates:The USPS has four different rates: Retail, Commercial Base (CBP),
Commercial Plus (CPP), and Negotiated Service Agreement
(NSA). You may think that if you’re an online seller you can only
qualify for retail rates, but that’s not true. There are ways you
can qualify for commercial and negotiated level pricing, which
will give you a discount on postage. We’ll talk more about how
you can get these discounts later, but for now, here’s a quick
overview of each of the rates:
• Retail rates are the rates you pay when you visit the post office.
• Commercial Base Pricing is a discounted rate offered to
USPS customers who buy and print shipping with an online
postage provider. Commercial Base Pricing is always
cheaper than rates at the Post Office.
• Commercial Plus Pricing is available for companies
who ship more than 50,000 packages per year and
have a customer commitment agreement with USPS.
• Negotiated Service Agreement is a contractual agreement
between the USPS and high volume shipping companies.
This type of pricing is also available through Express 1 (we’ll
explain Express 1 below).
• USPS rates do occasionally change. Here’s their 2014
Rate Guide: www.usps.com/business/prices.htm
USPS Service Delivery
Priority Mail Express™ Overnight delivery to most U.S. locations
Priority Mail® Expected delivery within 1, 2, or 3 business days. Delivery date is an estimate, not guaranteed.
Flat Rate for Priority Mail Express or Priority Mail™ Overnight delivery or 1, 2 or 3 business days delivery.
First-Class Mail® Delivery is within 2-3 days
Standard Post™ (Retail only) Delivery in 2-8 days
Media Mail® Delivery is within 2-3 business days
Parcel Select® Delivery is usually within 7-10 days
Military Mail (APO/FPO/DPO) Varies
*All pricing and facts from USPS.com and are subject to change. This chart highlights many services, but is not all inclusive, so please check the carrier’s website for complete details.
THE CARRIERS
3AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
USPS Pro-Shipper Tips:• You can get free Priority Mail, Priority Mail Express and
Regional Rate boxes, envelopes and stickers at most Post
Offices and the supplies may also be ordered at USPS.com.
The supplies come with free delivery to your door.
• If you ship Priority Mail and Priority Mail Express, make sure
you use the correct box for your shipment. The packaging
indicates the service. So, if you use a Priority Mail box, you
will receive Priority Mail Service, and if you use a Priority Mail
Express box, you will receive Priority Mail Express Service.
• USPS only guarantees delivery by a specific day for Priority
Mail Express. Priority Mail will be delivered in an estimated
1-day, 2-days or 3-days, and is not guaranteed for delivery
within this time frame.
• To qualify for free package pickup at your door, at least
one package being shipped must be sent via Priority
Mail Express, Priority Mail or Flat Rate. You can schedule
a carrier pick up online.
• If you are shipping from home and you purchase postage
from USPS.com, know that their site doesn’t interface with
a digital scale. You will need to enter the weight manually
or select Flat Rate. We’ll also talk more about scales in the
supplies section.
• CBP and CPP rates are for those that ship in bulk, but they
are also offered by some of USPS’s Partners, like Endicia,
Express 1 and Stamps.com.
• Did you know you can do “hidden postage” so that only you
and USPS know how much you paid for shipping? With this
feature, the postage is still encoded on the barcode so it will
be shipped like normal, but your customer will never see how
much was paid on postage.
USPS’s Partners:Something that surprises many new shippers is that the USPS has
several approved partners that are authorized to provide internet
based USPS postage: Endicia and Stamps.com. To buy electronic
postage from any of these partners, you will buy it from your
computer. However, you can drop off the package at the Post
Office (with postage on it from Endicia, Express 1 or Stamps.com)
or have them picked up by the Post Office. When you mail it, the
Post Office will deliver the package for you. The benefits of using
these partners are convenience and cost savings.
ENDICIA®
Endica is the largest provider of online postage based on postage
volume, and they offer a vast array of postage printing options that
will eliminate trips to the Post Office. You can try them for 30-days
for free. After your first 30-days, they offer plans with no monthly
subscription fee as well as paid monthly subscription fees. Endicia
has also partnered with companies like DHL Global Mail. To learn
more, visit here: us.dhlglobalmail.com.
Endicia’s shipping rates are at the Commercial Base level, which is a
discount from the retail rates that you would receive at a USPS
counter. Endicia also supports customers who have achieved the
ability to use Commercial Plus Pricing and NSA rates.
EXPRESS 1®
Express 1 is a USPS partner specifically for Priority Mail Express and
USPS Priority Mail. They provide substantial postal discounts to any
individual or company, regardless of their shipping volume and without
signing a contract guaranteeing a specific annual shipping volume.
Express 1 is free to any individual or business, and it is especially
ideal for ShipWorks customers because it is fully integrated within
ShipWorks software and customers can begin receiving postal
discounts immediately.
Since Express 1 only offers USPS Priority Mail Express & USPS Priority
Mail services, they’ve partnered with Endicia and Stamps.com to offer
First Class, Parcel Select and Media Mail. If you ship items using First
Class, Parcel Select or Media Mail, you will need to use Express 1 &
Endicia, Express 1 & Stamps.com, or the USPS website.
STAMPS.COM®
Stamps.com has the largest customer base using online postage
service, and they make it possible to print postage directly from your
printer for anything from postcards to large packages. They offer a
free 30-day trial, and at the end of the trial you may sign up for a
monthly or annual plan.
Stamps.com shipping rates are Commercial Base Pricing Rates, a
discount from the retail rates you would receive at the USPS counter.
Stamps.com also supports customers who have achieved the ability
to use Commercial Plus Pricing and NSA rates.
THE CARRIERS
4AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
Comparison Chart Showing Differences Between Endicia vs. Express 1 vs. Stamps.com
Pro-Shipping Tips Using Endicia, Express 1 and Stamps.com:
• You can negotiate your rates with some providers. The
negotiated rate will depend upon the volume that you ship
annually, and may require that you sign a contract to meet
that annual volume.
• You can use Express 1 in conjunction with either Endicia or
Stamps.com. In fact, we strongly encourage you to do this
since Express 1 savings are substantial for most customers.
Endicia Express 1 Stamps.com
Authorized partner of the USPS X X X
Provides discounts you don’t get at the Post Office X X X
Supports USPS Priority Mail Express ™ X X X
Supports USPS Priority Mail™ X X X
Supports Flat Rate - Priority Mail Express™ X X X
Supports Flat Rate—Priority Mail™ X X X
Supports First-Class Mail® X *possible with large volume X
Supports Media Mail® X *possible with large volume X
Supports Parcel Select® X *possible with large volume X
Free USPS supplies delivered to your door X X X
Easy and convenient return options X X X
Supports standard and thermal label printer X X X
Prints stealth (hidden) postage so the receiver doesn’t know how much was spent on postage X X X
Requires a monthly subscription X X
Offers Commercial Plus Pricing type discounts without a contract X
This chart highlights many services, but is not all inclusive. Please check the appropriate company’s websites for complete details.
THE CARRIERS
5AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
FedEx:
FedEx is a great choice for packages that need timely
shipping options. Similar to the USPS, there are two basic
options when shipping with FedEx. You can take it to a
FedEx location and they will do nearly everything for you,
or you can set up the shipment by yourself from your
home or office.
How to Ship with FedEx:1. Ship it from a FedEx office. Visit your local FedEx office with
the item boxed and ready to ship. When you take the box to
the FedEx clerk, they’ll weigh your package(s), tell you how
much you owe, and then ship it for you. It’s that easy.
2. Ship it from your home. If you want to be more indepen-
dent, you will need to package the item in a box, weigh
it, and measure the length, width and height. Then, visit
FedEx.com and create an account. This is very easy to
do on their site, and it will walk you through how to print
shipping labels online. After creating the label and applying
it to the package, you can schedule a pickup or drop it off at
a FedEx facility.
FedEx Services:
FedEx Pro-Shipper Tips:• FedEx also offers a variety of services like package redirect,
hold at location and many others. Please visit their website
for a complete list of unique services that may be of interest
to you and your business.
• FedEx has FedEx Ground, which delivers to both commercial
and residential addresses, and FedEx Home Delivery, which
delivers only to residential addresses Tuesday through
Saturday. These are two separate services so don’t get
confused! FedEx Ground will charge a surcharge if you ask
them to deliver to a residential address.
• You can negotiate a rate with FedEx based on your shipping
volume. This will ensure that you’re getting a lower rate than
what’s available online. The more you ship, the more you save.
• When customers sign up for a FedEx account via ShipWorks, they
are automatically able to receive a FedEx discount of up to 16%.
• FedEx rates do occasionally change. Here’s their 2014 Rate
Guide: www.fedex.com/us/2014rates/rate-changes.html
FedEx Service Delivery
Same-day delivery cross-country or cross-city Delivered door to door within hours (depending on availability)
FedEx First Overnight® Delivered first thing the next business day morning
FedEx Priority Overnight® Delivered the next business day morning
FedEx Standard Overnight® Delivered the next business day afternoon
FedEx 2Day AM® Delivered in 2 business days in the morning
FedEx 2Day® Delivered in 2 business days
FedEx Express Saver® Delivered in 3 business days
FedEx Ground® Delivered within 1-5 days in contiguous US and 3-7 days to and from Alaska and Hawaii
FedEx Home Delivery® Delivered within 1-5 days in contiguous US and 3-7 days to and from Alaska and Hawaii
FedEx SmartPost® Delivered within 2-7 business days
*All information is from FedEx.com and is subject to change. This chart highlights many services, but is not all inclusive, so please check the carrier’s website for
complete details.
THE CARRIERS
6AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
United Parcel Service (UPS®):
UPS is a great option for larger packages, especially those
that need timely delivery. They are the world's largest
package delivery company and ship to over 200 countries.
As with the USPS and FedEx, there are two basic options when
shipping with UPS. You can take it to a UPS location and they will
do nearly everything for you, or you can set up the shipment by
yourself in the comfort of your home or office.
How to Ship with UPS:1. Ship it from a UPS office. Visit your local UPS office with
the item boxed and ready to ship. When you take the box
to the UPS clerk, they’ll weigh your package(s) and tell you
how much postage you owe. Or, if you don’t have a box at
home, you can take in the item and they’ll box it and ship it
for you. It’s that easy.
2. Ship it from your home. It is also possible to ship UPS items
from home. First, package the item in a box, weigh it and
measure the length, width and height. Then, visit UPS.com
and create an account. This is very easy to do on their site,
and it will walk you through how to print shipping labels
online. After creating the label and applying it to the package,
you can schedule a pickup or drop it off at a UPS facility.
UPS Services:
UPS Pro-Shipper Tips:• You can negotiate a rate with UPS based on your shipping
volume. This will ensure that you receive a lower rate than
what’s available online. The more you ship, the more you save.
• UPS offers high-volume customers Mail Innovations
to help streamline and optimize domestic shipping.
UPS Mail Innovations works with the USPS to obtain
more competitive postal rates and offers transit times
similar to that of First-Class USPS mail.
• My UPS is a unique online service offered by the UPS
that helps keep your shipping data in a customizable
and easy-to-use format. Does that sound like something
you need? You can find more details on their site.
• UPS offers many additional value-add services like Saturday
delivery and Saturday pickup for select services. Please visit
their website for full details
• UPS rates do occasionally change. Here’s their 2014 Rate
Guide: www.ups.com/media/en/daily_rates.pdf
UPS Service Delivery
UPS Next Day Air® Early AM® Delivers the next business day in the morning
UPS Next Day Air® Next business day delivery by 10:30 am., 12:00 noon, or end of day, depending on destination
UPS Next Day Air Saver® Next business day delivery by 3:00 or 4:30 p.m. where UPS Next Day Air® delivery is committed by 10:30 a.m. or 12:00 noon, respectively
UPS 2nd Day Air A.M.® Delivery on the second business day by 10:30 a.m. or 12:00 noon to most commercial destinations
UPS 2nd Day Air® Delivery by the end of the second business day. Some locations in Alaska and Hawaii require additional transit time
UPS 3 Day Select® Delivery by the end of the third business day
UPS Ground Delivery typically in 1-5 business days
UPS Mail Innovations UPS Mail Innovations inducts your mail piece into the U.S. Postal Service within 48 hours of processing. The U.S. Postal Service will then deliver the mail piece within three to five days, on average
All information is from UPS.com and is subject to change. This chart highlights many services, but is not all inclusive, so please check the carrier’s website for complete details.
THE CARRIERS
7AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
Regional Carriers
Regional shipping carriers cover a geographic region.
They can often times provide lower rates than other
carriers because they cover a smaller region. For example,
OnTrac covers the West Cost and ships within California,
Arizona, Nevada, Oregon, Washington, Utah, Colorado
and Idaho. If you ship within these states, you could save
money and gain the competitive edge with next-day
delivery at ground rates. Similar to larger shipping
carriers, regional carriers offer a variety of shipping
services. For example, OnTrac offers Sunrise, Sunrise
Gold, Super Sunrise Gold, OnTrac Ground, Palletized
Freight and COD Services.
You can discover other regional carriers in your area by doing
online research.
International Shipping:
Is it easy to ship international? Yes, it can be. Are there additional
things you need to know? Absolutely!
This guide’s primary purpose is to talk about domestic shipping,
but we’re going to give you a few nuggets to think about when
it comes to international shipping. As you’d expect, there are
numerous ways to ship international. All of the carriers we have
mentioned above (USPS, UPS, FedEx, etc.) provide international
shipping service. In addition, here are some others that you may
want to consider:
i-parcel™
i-parcel is focused on helping internet retailers with their
international online shopping experience. Their patent
pending Cloud technology offers international shippers
local currency shopping, multi-currency payments, fraud
protection, online tracking, returns and more. They offer
several shipping services, but their primary offering is
the i-parcel Preferred Service, a 5-7 business day, fully
trackable international air express service with the ability
to provide shoppers with shipping costs, duties and
taxes at checkout.
Postal Qualified Wholesalers (PQW)
PQW’s are an approved list of companies who work with
the USPS to send and mail packages outside of the US.
Their goal is to help businesses with international shipping
and mailing. Those shipping internationally may want to
look at working with PQW’s to simplify their international
shipping process. A complete list of PQW’s is available
online, and ShipWorks is integrated with many of these
approved PQW’s.
Pro-Shipper Tips:• International shipping requires customs forms. Some programs,
like ShipWorks, will automatically generate the customs forms
you need to ship internationally so that you don’t have to worry
about your package getting stuck at the border.
• It’s important to know that customs regulations vary
by country and not all carriers ship to all locations.
• Costs can be considerably higher for international destinations,
so make sure the weight and dimensions of the package are
accurate. Also, make sure you ship with a service that will track
and insure your shipments.
THE CARRIERS
8AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
Carrier Wrap-Up. So, what’s the Bottom Line? Which Carrier is Better?After reading (or skimming) all of the above, you can understand
why the “best” carrier will vary based on what you’re shipping. In
general, if you’re shipping small items, start by researching USPS. If
you’re shipping larger items, start by researching FedEx and USPS.
In addition, here are six questions to ask yourself before
ou pick a carrier:
1. What do you sell?
This question may seem basic, but your plan will take shape
as you start to think through this answer. Look at the item(s)
you ship the most. How much does it weigh? Is it fragile?
Will it need extra padding? Will it need refrigeration?
2. Where do you usually ship items to?
Knowing this answer will help you determine if you
should consider using a regional or international carrier,
or if it’s better for your business to use a carrier that
delivers throughout the U.S.
3. What are your customers’ expectations?
Do your customers expect to have next day delivery? Do
they expect free shipping? Do they want both free shipping
and next day delivery? Once you determine your customers’
greatest desire, you can tailor your shipping services to
meet their needs.
4. Does the shipping provider charge any extra fees?
Watching your shipping costs is important so that you can
keep your administrative costs low. Dollars and cents add
up as your volume increases, so make sure you under-
stand all fees as invoiced by your respective carriers.
5. Can you get a discount on shipping?
Don’t forget, discounts are often available in a variety
of ways that range from using an online shipping provider
to shipping volume discounts. Talk to your carrier and see
if you’re eligible for any discounts.
6. Can you easily increase your shipping volume
as the company grows?
Your ultimate goal is to grow your business, which means
your shipping will grow too. As it does, make sure you keep
your future in mind, and continually evaluate your existing
infrastructure, storage, production, and shipping capabilities.
After knowing the answers to these basic questions, we recom-
mend visiting the carriers’ sites and calculating the cost for your
specific type of package. All carriers have helpful shipping
calculators on their sites that will estimate the time and cost
of delivery based on the destination and service:
• USPS Shipping Rate Tool:
postcalc.usps.com/
• UPS Shipping Rate Tool:
wwwapps.ups.com/ctc/request?loc=en_US
• FedEx Shipping Rate Tool:
www.fedex.com/ratetools/RateToolsMain.do?link=2
• DHL Global Mail Rate Tool:
us.dhlglobalmail.com/get-a-quote.aspx
• OnTrac Rate Tool:
www.ontrac.com/ziptools/default.aspx
Pro-Shipper Tip: If you use ShipWorks, you can also see shipping
rates without having to toggle between multiple carrier websites.
THE CARRIERS
9AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
Online Stores and eCommerce CartsIf you’re reading this guide, it’s very likely that you’re
already selling online on marketplaces like eBay™,
Amazon®, or Etsy and/or have your own website.
Since shipping is intertwined with selling online,
we’re often asked questions about marketplaces
and carts.
10AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
ONLINE STORES AND ECOMMERCE CARTS
It’s no secret that your shopping cart is a critical component to
the success of your online business. There’s just too much for us
to cover in this guide, so we’re intentionally keeping this section
short and sweet. However, here are a few things to keep in mind
or questions to ask as you research eCommerce carts:
• There are three general types of eCommerce carts
available: paid, open-source, and multi-channel.
º Paid: An eCommerce cart hosts your online store for you
and usually has easy templates to use so you can build
your store. You’ll lose some flexibility with this option,
but it can also be easier to set-up.
º Open-Source: With an open source shopping cart, you
will have to install it, develop it and maintain it yourself (or
hire an IT guy). This means you will have greater flexibility
and will be able to customize it. However, it also means
that you will need to have someone on your team that’s
comfortable with technology and maybe coding.
º Multi-Channel: Multi-Channel eCommerce solutions
make it possible to integrate, manage and optimize
merchandise sales across hundreds of online sales
stores like Amazon, eBay, Etsy, and more.
• Do you have IT or programming resources available? If yes,
that’s great and you would likely be fine with an open-source
or custom-made option. If not, you may want to go with a
plug-and-play, paid option shopping cart.
• Do you want to host your own store or do you want someone
to do it for you? If you want to host your own store, than you
could go with an open-source cart.
• Remember that security is a huge component of an online
site because you will be taking credit card information.
11AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
Shipping SuppliesThere are a few shipping tools and supplies
that you will need in your shipping toolkit.
Thankfully, all of them are fairly inexpensive
and easy to get.
12AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
SHIPPING SUPPLIES
1. Shipping Scale: One of the must-have items for any shipper
is a scale because it ensures you’re not overpaying on
outgoing shipments. The cost for a scale varies from about
$20 to $250 each. Before purchasing, determine if you
primarily send heavier items or smaller items. If you’re
primarily sending smaller items, you’ll want a scale that
reads in pounds and ounces. If you primarily send heavier
items, most people can get by with a shipping scale that
accommodates up to 35 pounds.
Pro-Shipper Tip: When you weigh an item, always round
up. If the scale says 10.1 ounce, than your package must
be shipped at the 11 ounce rate.
Before you purchase a scale, you may want to do some
research and see if your scale integrates with your
shipping provider’s site—some do and some don’t.
If you buy a scale that doesn’t, you will be entering
weights by hand to their site.
2. Tape Measure: Once you start shipping a lot, it’s likely that
you will know your commonly used size package dimensions
by heart. Until that time, you will want to keep a tape
measure nearby. If you don’t have a tape measure, you
can also check the bottom of the box since many boxes
have the size on the bottom.
Pro-Shipper Tip: When you measure an item, always round
up to the nearest inch. Fractions or decimals are not allowed.
3. Printer: You need a way to print shipping labels, and you have
a choice between a standard printer and a thermal printer.
A standard printer uses ink or laser technology to print.
You probably already have a standard printer.
A thermal printer is dedicated to printing shipping labels. It
uses heat to print (not ink), and usually does this in one of
two formats: EPL or ZPL. These are languages that tell the
thermal printer how to print the label. The benefits of thermal
printers are that you never need to purchase ink or toner,
and they print labels much faster.
Either a standard or thermal printer will work for printing
shipping labels. Most customers start with a standard
printer and eventually graduate to a thermal printer as they
become more serious. When you do decide to look for a
thermal printer, we recommend supplies.shipworks.com
for thermal printers at over 20% off the retail price.
4. Shipping Supplies: Shipping supplies can be expensive,
but they don’t have to be. As mentioned already, you can
get free supplies from USPS, FedEx and UPS. You can also
purchase supplies at a discounted price from many online
sites including supplies.shipworks.com.
13AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
Shipping InsuranceThere are lots of insurance options. Even though carriers include
insurance protection, do you know what it really covers? Most
people try and ignore insurance until an item is lost or damaged
and they have to file a claim. That’s when they wish they had
researched insurance a little more from the get-go. After all, your
business is about growing revenues, and lost, stolen or damaged
shipments eat at the bottom line. If you know your insurance
coverage in advance, you’ll be much happier when (if) you ever
have to file a claim.
14AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
SHIPPING INSURANCE
Shipping insurance comes in two flavors: Cargo Insurance and
Declared Value. They are night-and-day different from each other.
Here are a few questions you should ask yourself about insurance,
so that you make sure you’re getting the protection you need.
1. What type of coverage are you getting? Is it declared
value or cargo insurance? This chart will help explain the
difference. Declared value is included by most major
shipping carriers at up to $50 or $100 of value. With this
insurance coverage, the shipper must prove the carrier’s
negligence directly resulted in the loss or damage to the
shipment. Alternatively, cargo insurance (true insurance)
pays regardless of if the loss or damage was due to the
carrier’s negligence, and is regulated.
2. Who are you getting your insurance from? Is it a carrier
or a third-party? Getting insurance from a carrier may
seem the easiest, but third-party insurance is generally
less expensive and provides fuller coverage.
3. How much should I insure packages for? Insure items for
what they are worth in retail channels, or what is most likely
to be spent to replace it. If you ever have to file a claim,
you are unlikely to get more insurance compensation for
the item than its current retail value, so do not pay any
additional fees that result from higher insurance values.
4. How much do I have to pay to insure a package?
While carriers charge about $0.90 cents for every
$100 of insurance (with a $2.70 minimum), third-party
companies charge about $0.55 cents for every $100
(with no minimum). For example, ShipWorks Insurance
(managed by InsureShip) will charge as little as $0.55
cents for a package insured at $100, whereas UPS and
FedEx have minimums for the same package.
5. How do I file a claim? Start your claim as soon as you
realize a package is damaged, lost or stolen. Carriers
and third-party insurance companies have different
cutoff times for filing, so make sure you file soon so
that you don’t miss the allotted window.
Pro-shipper tip: Some insurance carriers, like ShipWorks
Insurance, provide coverage on shipping costs. Want
more information about Shipping Insurance? Check out
ShipWorks’ free insurance webinar, available 24x7.
Cargo Insurance (Most 3rd party insurance coverage, including ShipWorks Insurance)
Declared Value (Carrier shipment coverage)
Provides door-to-door protection Yes No
Pays whether or not transportation provider’s negligence is proven to have caused the loss
Yes No
Pays for losses occurring outside control of the carrier Yes No
Pays shipper for full invoice value of cargo lost or damaged, plus the freight and other associated costs
Yes No
Can pay for expediting replacement goods Yes No
Typically has a speedy payout process Yes No
Regulated by the Department of Insurance Yes No
15AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
What is Shipping Software? Do I Really Need it?Well, it goes without saying that we’re a little biased and
we think everyone needs ShipWorks shipping software.
16AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
WHAT IS SHIPPING SOFTWARE? DO I REALLY NEED IT?
On average, most ShipWorks' customers begin using shipping
software when they are shipping about 20-25 packages a week.
Here are a few comments customers have shared on the
advantages they see using ShipWorks:
• “It saves a ton of time. We can download orders directly from
our shopping cart, print dozens of labels at once, and then
have our cart automatically updated.”
• “I no longer spend my days copying and pasting addresses in
a carrier’s website. Now, I print labels quickly and I’m done.”
• “We are able to ship using FedEx, UPS and USPS without
switching shipping software and going back and forth
between websites.”
• “You can develop and customize shipping labels,
reports and more so that you look more professional
as your business grows.”
• “The ability to compare carrier prices all on one screen
saves me hundreds of dollars a year.”
What’s the Benefit of Shipping Software? Shipping software allows you to consolidate all of your orders from
all online stores, and then ship with multiple shipping carriers.
Depending on the software provider, you can also do things like
compare carrier’s shipping rates (without having to visit each
carrier’s website), print hundreds of shipping labels at one time,
automatically email your customers with their tracking number,
automatically update your store with the tracking number, purchase
shipping insurance that costs less and covers more, and manage
your customer database. Most shipping software offers a trial period,
so you can try one and determine if you like it.
Recommended Questions to Ask when Looking for a Shipping Software Provider:ShipWorks is one of several options when it comes to shipping
software. We know you’ll like our product if you decide to use it, but
we also understand you may want to shop around. Here are a few
questions to ask each software provider to ensure you’re getting
software that will work best with your business.
1. Do you connect with my online store(s)?
2. Do you connect with the carrier(s) I like to use?
3. Do you offer free customer support? How will I get help?
Phone? Email? Social media? Online documents?
4. If I want to use more than one computer to manage my
shipping, do I need to pay for each workstation I run the
software on? If so, how much per workstation?
5. If I want more than one user to use the software,
does it cost more per user?
6. What printers/label formats do you support?
7. What shipping scales do you support?
8. Are you web-based or locally installed on the computer?
9. If pricing is based on shipping volume, what happens
if I exceed or go under a specific shipping volume
for that month?
10. Is there an annual contract?
It saves a ton of time. We can download orders directly from our shopping cart, print dozens of labels at once, and then have our cart automatically updated.
17AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
Shipping Term Glossary
18AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
BATCH PRINT: ............................................ Printing more than one shipping label at a time.
CARGO INSURANCE: .................................. The type of shipping insurance from most 3rd party insurance providers
CARRIER: .................................................. The people who deliver your package from point A to B.
There are three main carriers in the US—FedEx, USPS and UPS.
DECLARED VALUE COVERAGE: .................... The type of shipping insurance from most carriers.
ECOMMERCE STORE/CART/PLATFORM: ...... This is the place where you sell your goods such as eBay, Amazon,
Etsy, your own website, or a host of other online locations.
ENDICIA: ................................................... Approved USPS partner. Authorized to provide internet based USPS postage.
EXPRESS 1: ............................................... A partner specifically for USPS Priority Mail Express and USPS Priority Mail.
It is able to provide discounts to any company, regardless of their shipping volume.
FEDEX: ...................................................... Acronym for Federal Express
FLAT RATE: ................................................ You pay one rate no matter the weight or where the package is going.
FREIGHT CONSOLIDATION: ......................... See zone skipping definition
RATE CALCULATOR: ................................... An online tool that will tell you how much it will cost to ship an item by carrier. Every carrier has their
own online rate tool, so visit the carrier’s site or you can also get links to the calculator in this guide.
REGIONAL CARRIERS: ................................ Regional shipping carriers cover a specific geographic area. They can often times
provide lower rates since they cover a smaller geographic area.
RETAIL: ..................................................... The price you pay when you use standard shipping services. If you’re a savvy shipper,
you’ll rarely, if ever, pay retail shipping prices.
SHIPPING CARRIERS: ................................. The big three are USPS, FedEx and UPS.
SHIPPING SOFTWARE: ............................... Software that streamlines your shipping processes and connects your
online store with shipping carriers.
SHIP WITH JOY: ......................................... This is what happens when you use ShipWorks to do all of your shipping.
SHIPWORKS: ............................................. Shipping software that connects all of your online stores with all major shipping carriers. Print hundreds of
shipping labels with one click, update online order status, send email notifications, and more. Free trial.
STANDARD PRINTER: ................................. uses ink or laser technology to print. You probably already have one of these.
STAMPS.COM: ........................................... Approved USPS partner. Authorized to provide internet based USPS postage.
THERMAL PRINTER: ................................... dedicated to printing shipping labels. It uses heat to print (not ink), and it does this
in one of two formats: EPL or ZPL. With thermal printers, you never need to purchase
ink or toner, and there is no paper jamming or wasted labels.
UPS: ......................................................... Acronym for United Parcel Service
USPS: ....................................................... Acronym for United States Postal Service
ZONE: ....................................................... Typically, carriers group together several geographical regions into zones
and provide shipping charges for movement between these zones.
ZONE SKIPPING: ........................................ This is primarily for advanced shippers or those with multiple warehouses. It’s a method
where you consolidate shipments going to a region by using “less than truckload” (LTL)
shipping and ship items together as a single larger shipment to get them closer to the
appropriate shipping zone or delivery point.
19AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
SHIPPING TERM GLOSSARY
Want to Save Hours a Day on Shipping?We’d love to show you how ShipWorks can help
you grow your business and ship with joy.
THANK YOU SO MUCH! WE HOPE THIS EBOOK HAS TAUGHT YOU SOMETHING NEW ABOUT SHIPPING. WE APPRECIATE
THE TIME YOU TOOK TO READ THIS AND WE’D LOVE TO HEAR WHAT YOU THINK. PLEASE LET US KNOW YOUR
COMMENTS ON OUR WEBSITE, FACEBOOK, TWITTER OR [email protected]. THANKS AGAIN!
20AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING
SHIPWORKS.COM
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