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Weight and size of the package determine what carriers work best from a cost and delivery time standpoint, and the shipping rates should be calculated and modeled before determining shipping and handling costs to the consumer. Lastly, the price of the product and the ability to ensure and confirm delivery will have relevance in the method of shipment. Here are the most commonly used services:
• USPS. For lightweight packages weighing less than 3 pounds, using USPS Priority Mail and USPS First Class provides a two- to three-day turnaround throughout the U.S. at the most reasonable cost. USPS offers delivery confirmations and delivers on Saturdays. One great advantage with Priority Mail is that USPS can supply a free shipping box and has more than 18 box styles from which to choose. If you're doing significant volume, USPS can give you free custom boxes with your logo imprint.
If the product is books, CDs or DVDs, USPS offers Media Mail. If your product weighs less than a pound, you can ship Standard Mail, although your distribution center will have to sort the packages into mail sacks to the BMCs to achieve the greater postal discounts. Costs can be as low as 95 cents per piece. Delivery time for Standard and Media Mail normally range four to 11 days.
• Independent carriers. As discussed, UPS, FedEx and a few other independent companies offer zone-skipping services that use USPS to deliver the package for the final mile to the consumer. DHL brands its service “DHL at Home,” competing with SmartPost and UPS ground. Expect delivery times from three to 10 days, depending on location and service.
UPS' and FedEx's ground services split the U.S. into zones and charge different rates depending on the zone distance from the shipping point. Prices jump dramatically as the distance or zone increases, and service standards depend on the distance between the zones—normally one to six days for ground service. They offer delivery confirmation and automatically insure the shipment.
These carriers offer second-day and next-day services at a significant premium but also provide base insurance for packages.
A good distribution center blends its carriers to take advantage of competitive rates and services in different areas of the country and can use three or more different shipment methods to create the best rate and performance for the consumer and the bottom line.
Tom Krueger is the vice president of National Fulfillment Services, a full-service fulfillment company managing B-to-B and B-to-C consumer call-center, order processing, and warehouse and distribution programs. He can be reached at tkrueger@nfsrv.com or (610) 532-4700 x230.
• USPS. For lightweight packages weighing less than 3 pounds, using USPS Priority Mail and USPS First Class provides a two- to three-day turnaround throughout the U.S. at the most reasonable cost. USPS offers delivery confirmations and delivers on Saturdays. One great advantage with Priority Mail is that USPS can supply a free shipping box and has more than 18 box styles from which to choose. If you're doing significant volume, USPS can give you free custom boxes with your logo imprint.
If the product is books, CDs or DVDs, USPS offers Media Mail. If your product weighs less than a pound, you can ship Standard Mail, although your distribution center will have to sort the packages into mail sacks to the BMCs to achieve the greater postal discounts. Costs can be as low as 95 cents per piece. Delivery time for Standard and Media Mail normally range four to 11 days.
• Independent carriers. As discussed, UPS, FedEx and a few other independent companies offer zone-skipping services that use USPS to deliver the package for the final mile to the consumer. DHL brands its service “DHL at Home,” competing with SmartPost and UPS ground. Expect delivery times from three to 10 days, depending on location and service.
UPS' and FedEx's ground services split the U.S. into zones and charge different rates depending on the zone distance from the shipping point. Prices jump dramatically as the distance or zone increases, and service standards depend on the distance between the zones—normally one to six days for ground service. They offer delivery confirmation and automatically insure the shipment.
These carriers offer second-day and next-day services at a significant premium but also provide base insurance for packages.
A good distribution center blends its carriers to take advantage of competitive rates and services in different areas of the country and can use three or more different shipment methods to create the best rate and performance for the consumer and the bottom line.
Tom Krueger is the vice president of National Fulfillment Services, a full-service fulfillment company managing B-to-B and B-to-C consumer call-center, order processing, and warehouse and distribution programs. He can be reached at tkrueger@nfsrv.com or (610) 532-4700 x230.
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