How To Use Flat-Rate Shipping To Boost Sales in 2021

Shipping margins are crucial to eCommerce companies’ profitability and long-term viability. You’re wasting money if you’re not sending your items in the most cost-effective and practical way possible. Flat-rate shipping from the USPS is one approach to cut shipping charges.

In reality, whether you’re just starting out or have been in the industry for a while, shipping might be one of the most difficult aspects to learn. But there’s no such thing as a one-size-fits-all shipping strategy. Yet there are some suggestions to get you started.

Let’s see how using flat-rate shipping can boost your sales in 2021.

What is flat-rate shipping?

Flat-rate shipping is also known as linear rate shipping. It is a monetary value assigned to each parcel. As a result, the value is unaffected by the measurements, size, or weights.

That is why shipping big items at a flat rate are much more favorable than shipping lighter packages.

You can either charge a flat rate that never changes regardless of what you’re delivering, or conditional flat charges based on product weight or transaction value. For instance, you may charge $10 for domestic delivery, $15 for international shipping, and $5 for any orders over $100.

Why flat-rate shipping is perfect for eCommerce shops

Depending on how shipping prices are normally determined, flat-rate shipping is an interesting shipping option for several factors.

Initially, the further the distance or shipping locations to which you ship your goods, the more costly they are, and this only gets worse as the order gets bigger.

Furthermore, dimensional weight is a standard price method that is derived by multiplying a package’s length, width, and height. Shipping rates are calculated by freight carriers like USPS, FedEx, and UPS. This is depending on whichever amount is greater: the package’s exact weight or its calculated dimensional weight.

In addition, it streamlines everything a lot and could be a great choice for some businesses, particularly those that are smaller and do their own fulfillment.

Remember: It is also a method of determining how to price your shipment. In which you charge a fixed shipping amount for each order (instead of offering free shipping).

Difference between Flat-Rate and Standard Shipping

As previously mentioned, flat rate shipping simply means shipping any type of merchandise, of any size, for the same fee. The local time would be the only major factor.

Standard Shipping, on the contrary, is the standard or common method of shipping any package by computing rates and determining time zones, pin codes, box measurements, and weight.

In most cases, this shipping option takes its regular delivery time, which is approximately 5 – 10 days. Additionally, firms or people who do not have any urgent shipments prefer regular delivery.

What is the process of flat-rate shipping?

The term “flat rate” refers to the fact that the cost of shipping is unrelated to the weight, shape, or size of the transported object. It is determined by the amount of space available in the USPS box. By following these procedures, eCommerce retailers can transport products at a fixed charge.

Get a flat rate box from USPS

Choose from a range of flat rate boxes at your local USPS office rather than packaging products in your own box. There are three sizes of flat rate boxes: small, medium, and large; the larger the box, the more the shipping costs. The highest weight that may be carried is 70 pounds.

Pack your items and write your address on the box

Fill the flat rate box with your items and address the package.

Ship your items

Take your flat rate box to a USPS location and send it via Priority Mail.

How flat-rate shipping can result in more sales

One of the main factors customers choose flat rates is that they control demands and provide clarity. Customers may see how much shipping costs before they get as far as the checkout process if you use flat rates. Customers don’t appreciate being surprised by shipping costs when they try to complete their transactions, thus this is critical.

These added checkout charges are the primary reason for checkout abandonment in a recent survey. However, with flat rates, you can avoid unpleasant surprises by announcing your shipping prices as soon as possible. This is either by an announcement window or on your shipping policy website.

You could even provide free delivery on orders over a specific amount to entice customers to add more items to their cart and. As a result, it can improve your average order value.

Why do eCommerce businesses use flat-rate shipping?

Having a lower, constant cost, flat rate shipping can help small businesses save a lot of money on shipping. It isn’t ideal for every eCommerce company. Yet it is most commonly utilized by smaller businesses that pack their own boxes and go to the post office to send orders.

Any item weighing up to 70 pounds must be packaged

No need to stress about weighing each shipment and calculating delivery charges. If your package weighs less than 70 pounds, you could ship it with flat-rate delivery.

Covered up to $50 in case of an accident

This is already taken care of to some level. You don’t have to buy shipping insurance separately. Every flat-rate plan comes with a $50 insurance policy included in the price.

If the goods are worth less than $50, you will be reimbursed if they are lost. They can also include a document of mailing for added assurance.

Deliver to any USPS location

Once your box is ready for shipment, you may drop it off at any USPS location.

Includes USPS Tracking

Another eCommerce shipping must-have: simply enter the parcel number into the USPS tracker and trace it all the way to delivery.

Is flat-rate shipping a good option for me?

Although USPS flat rate delivery is a great service, it isn’t necessarily the ideal option for your eCommerce store.

If you’re content fulfilling orders in-house, USPS flat rate is a decent option for small and weighty things that need to travel a long distance. You could also save money at the post office by accessing commercial base rates through an online postal supplier.

Meanwhile, an all-inclusive fulfillment service is a good and cost-effective choice if you want flat pricing yet can’t or do not want to manage fulfillment in-house. You have access to straightforward, reliable, and competitive shipping costs. This is while also gaining from the fact that your fulfillment is handled by somebody else.

Flat-rate shipping alternatives

There are other options if flat rate shipping doesn’t appeal to you. But you want to guarantee that your shipping fees compensate your carrier expenses.

Dynamic checkout

When clients enter their mailing address, dynamic checkouts compute the shipping charges for them automatically. This includes your carrier fees, but keep in mind that once clients see the complete price, they may abandon their cart.

Average shipping costs

You can charge clients a flat delivery fee that fulfills your overall costs for the year by estimating your average shipping charges. But, overly high delivery charges for little and lightweight products should be avoided.

Conclusion

Flat rate shipping is a very straightforward and simple method of transporting products. For all types of boxes and weights, there are set rates. Unlike traditional shipping, where shipping costs are based on product kind, dimensions, sizes, and time zone.

It is also simple to comprehend, and it is one of the finest solutions for businesses with frequent order deliveries and many orders. Having a large consumer base in the same time zone is also advantageous. Ultimately, it’s all about choosing the correct delivery partner and keeping track of your transactions.



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