You just finished your work day at your full-time job and have come home to your true passion, your start-up soap business. You log onto your sales platform and see that you have sales, plural! Your customers selected different shipping services from multiple shipping providers. You anxiously check the time and your Shipping Provider Logistics schedule; with focus and a little luck, you should be able to get every order out today, so you get to work.
>> Fast Forward >>
You’ve managed to get all your orders out the same day, and now you’re rewarding yourself with a well-earned glass of wine and self-congratulatory pats on the back. As you’re joyfully admiring your sales platform, you notice the number of abandoned carts exceeds the number of sales you’ve made. Alarmed, you put on your detective’s hat and find a commonality; the point of abandon is when your customers see their shipping options and rates. How can you convert those abandoned baskets into sales?
Suppose you’re missing out on sales because your shipping services and rates are not palatable to your customers. In that case, consider what shipping services and rates you can obtain to close the sale. Similarly, suppose you’re running around between multiple shipping providers. In that case, consider what shipping services you can offer to make your operations more efficient. Shipping services and rates go hand in hand and can significantly impact multiple silos of your business. Here are three (3) steps for selecting the best shipping services for your start-up:
- Create business accounts with the major shipping providers in your area. If you still need to do this, do it now, then return to this article. You’ll want to have your accounts to order free shipping supplies, access local account reps for help and guidance, and have established accounts to track and build your shipping volume. Shipping volume is inverse to your shipping rates; the higher the volume, the lower the rates. Read Start-Up Checklist: Shipping Provider Logistics for easy steps to identify your area’s shipping providers.
- Identify what shipping services you’d like to offer your customers. You may select your services from one shipping provider, mix and match, or provide similar services from multiple providers. Start-ups should consider offering three options: base (i.e., Ground, USPS First Class), an express (i.e., FedEx 2Day, USPS Priority Mail), and an overnight (i.e., FedEx Overnight, UPS Next Day Air, USPS Priority Mail Express). Something to keep in mind when selecting your shipping services is: What are your shipping services communicating to your customers? If you offer an overnight service, the customer may think they’ll receive their order the day after purchasing. We know this is not a guarantee, as logistics impact order delivery. To minimize confusion, it is a best practice to establish a standard fulfillment timeline and post it on your sales platform.
- Identify the best shipping rates for your shipping services. As stated above, the higher your shipping volume, the lower your shipping rates. Start-ups have low shipping volumes and can are subject to higher shipping rates. That does not mean they have to pay those rates; start-ups can pay for access to business accounts with established volume and lower rates. If you use a sales platform like Shopify, your account grants you access to their preferred shipping vendors. Shopify has business accounts with providers like USPS, UPS, and DHL to offer customers excellent rates. Start-ups need help beating those rates and should consider selecting from their offerings to get your business running. Suppose your sales platform does not offer access to their business accounts; consider e-commerce sites specializing in shipping platforms and providing access to a wide range of shipping provider business accounts. Here are a couple to check out: Shippo, Easyship, and Pirate Ship.
A word to the wise, don’t overthink it! If you are overwhelmed with all your options, consider selecting your services from a single shipping provider, this will minimize your need to coordinate with multiple vendors and platforms. You can continually evolve your offerings as your business grows and you collect more data points.
EAF Logistics 
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