Starting an ecommerce business can be exciting, but setting up a smooth and cost-effective delivery process is one of the most crucial tasks for success. Shipping costs, delays, and packaging mishaps can affect your profitability and customer satisfaction. For small business owners working on a limited budget, finding efficient ways to manage deliveries is essential. Here’s a step-by-step guide to setting up your ecommerce business’s delivery process without breaking the bank.
1. Choose the Right Shipping Supplies
One of the biggest mistakes new business owners make is purchasing expensive shipping supplies. Local post offices, such as USPS, often charge high prices for boxes and envelopes, which can eat into your profits.
Instead, source your packaging materials from more affordable options:
- Buy in bulk from wholesale platforms: Look for platforms that specialize in bulk supplies, where you can buy boxes, bubble wrap, and envelopes at a fraction of the cost. Custom shipping boxes can be ordered for as low as $0.65 per box when purchased in larger quantities.
- Local dollar stores: For smaller packaging needs or when you only need a limited quantity of materials, check out local dollar stores. They offer great deals on tissue paper, filler materials, and small shipping boxes.
2. Use Flat-Rate Boxes Strategically
While flat-rate boxes offered by postal services can seem convenient, they are not always the most cost-effective option—especially for lightweight items. Save flat-rate shipping for heavy items where the weight would otherwise drive up costs. For lighter products, choose standard shipping boxes, which are often much cheaper.
3. Print Shipping Labels at Home
To further reduce costs, avoid going to your local post office for every shipping need. Many online services allow you to print labels directly from your home, which can save both time and money.
- Sign up for a shipping platform like GoShippo or Pirate Ship that offers discounted shipping rates and allows you to create and print labels at home. These platforms connect with ecommerce tools like Big Cartel and Shopify, making it easy to manage orders and shipping in one place.
- Use a thermal label printer if your business volume is high. While you can start with a regular printer, investing in a thermal printer saves time and eliminates the need for ink and paper.
4. Streamline International Shipping
Expanding your business globally is a great way to reach new customers, but many business owners hesitate due to high shipping costs. However, international shipping doesn’t have to be prohibitively expensive:
- Use Pirate Ship’s Simple Export Rates for cheaper international shipping. This feature offers discounted rates for international orders, making it more affordable to ship globally.
- Ensure secure packaging for international orders by using extra bubble wrap or padding to avoid damage during the longer transit time.
5. Consider Third-Party Order Fulfillment
As your business grows, handling logistics in-house can become overwhelming. Using a Third-Party or 3PL e-commerce order fulfillment service can help streamline the process. 3PL services handle warehousing, packaging, and shipping for you, allowing you to focus on growing your business. While this may seem like an additional expense, it can save you money and time in the long run by optimizing delivery times and reducing mistakes.
6. Set Shipping Fees That Protect Your Profit Margins
When pricing your products, it’s important to account for shipping costs, payment processor fees, and potential issues like returns or incorrect addresses. To avoid cutting into your profits:
- Charge a flat shipping fee that’s slightly higher than your average shipping cost. For instance, if you spend around $3.50 to $4 per package, consider charging $5.50 to cover fees from platforms like Big Cartel or Stripe and potential reshipping costs.
- Include signature confirmation for higher-value items. For orders over $100, adding a signature requirement ensures that the customer receives the item and prevents disputes.
7. Improve Customer Experience with Custom Packaging
Your packaging is an opportunity to enhance your brand’s presence and make a lasting impression on customers. Custom boxes not only make your business look professional but also help customers remember their shopping experience with you.
- Invest in custom packaging when possible. While this may seem like an extra cost, you can find affordable options by buying in bulk or from wholesale platforms. Branded packaging can help with customer retention and increase the likelihood of repeat business.
- Add thoughtful touches like tissue paper, filler materials, or a thank-you note to elevate the unboxing experience.
8. Track Your Packages and Communicate with Customers
Timely and clear communication with your customers is key to a smooth delivery process. Offering tracking information and keeping your customers informed about their order status improves trust and reduces inquiries.
- Use tracking services from your shipping platform to provide customers with real-time updates.
- Send automated emails when orders are shipped, including the tracking number and estimated delivery time.
9. Don’t Be Afraid to Start Small
Starting a delivery process can seem daunting, especially if you are shipping out of your home. You don’t need to invest in fancy equipment or complicated logistics systems right away. Begin with basic packaging and labeling tools, and gradually improve as your business grows. Test different shipping options, refine your processes, and invest in new tools as your budget allows.
By following these steps and using affordable tools, you can set up an efficient and cost-effective delivery process that supports your business’s growth without stretching your budget.
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