As a workaround for UPS customers, automatic calculation can be performed by adding an additional shipping method that uses UPS Ground for rate calculation to a business address but is renamed and has its delivery day range increased by one day. Most shopping carts are able to handle integration in this manner.
These USPS services are a tremendous value when you factor in their low costs and fast delivery times. From experience, I know that at the 11 pound mark ground services become the better value.
Your experience may vary, however, so calculate your own break point in this regard. UPS SurePost and FedEx SmartPost can provide significant shipping savings over traditional ground services by eliminating hefty delivery area, residential, and Saturday delivery surcharges. While these services are not the answer for shipping every package, they are compelling option for a customer who is price sensitive, but not time sensitive. When implementing this service into my own business, I added it as the lowest cost delivery option at a flat rate cost.
Promoting a flat shipping rate avoids sticker shock at checkout. I find these services to be a good fit in this regard.
Pros Reduced shipping costs. Pricing is lower than conventional ground service. This is why UPS and FedEx will tack on delivery area and residential areas surcharges to your base ground rates. Consolidated services like SurePost and SmartPost eliminate these charges by delivering packages from many different vendors directly to the local USPS office branch that normally handles their mail delivery. UPS and FedEx get to make just one stop to deliver many packages, and the USPS letter carrier who is going to be driving by every house in a residential area on his daily route is not having to modify his route.
The savings that these efficiencies bring is passed on to you, the merchant. Some of the biggest advantages of UPS SurePost include: Cost Savings: As we covered before, many deliver costs are incurred within the last mile, regardless of how far that journey actually is. Staffing delivery personnel and operating numerous trucks can add up if deliveries are consistent enough. USPS already delivers to most areas daily, so consolidating this process can shave off a substantial portion of the delivery costs.
Shipment Tracking: While with some shipping services the tracking number will change once the carrier shifts within transit, UPS SurePost allows the ability to have the same tracking number from the moment the shipment is placed to the moment that the consumer receives the product. As an ecommerce business, being able to have pick-up and delivery options is a great way to customize the consumer experience.
With UPS SurePost, members are able to place shipments to all domestic areas, broadening the ability to make profit within a slightly larger delivery base.
Benefits High Volume Deliveries: Opting into UPS SurePost program is best for those that have a consistent high volume of deliveries, the reason being that in order to actually save money there need to be enough deliveries for the program to be justified.
The perfect company to benefit from UPS SurePost will possess these key features: High Volume Shipping Load — To take full advantage of SurePost it is best to be shipping a lot of packages in order to maximize the profit gained in delivery costs. UPS SurePost provides delivery in days from the time the shipment is placed, so if your products can wait that long there is a lot of savings to be made.
If products are not time sensitive and consumers understand the UPS delivery times, the program is a great choice. Furniture companies need not apply, most of the shipments made through a UPS SurePost arrangement will be under 10 lbs.
UPS SurePost vs. Consistency: FedEx SmartPost operates under a consolidation system that makes it so that USPS only receives shipments after meeting a volume requirement. ShipCalm Can Help With Shipping Costs ShipCalm is a 3PL service that knows a thing or two about the best shipping practices to support profit and business growth, whether through ecommerce companies or brick-and-mortar businesses.
These benefits, in combination with cost savings, make SurePost a viable option for those looking to reduce cost and increase flexibility. How would saving 20 percent on shipping costs affect your bottom line? The answer is likely positively. There are several more potential benefits to consider, including the following:.
Additionally, upgraded packages may arrive one day earlier. As mentioned previously, SurePost might take a little longer. Making the last mile more efficient does slow down the delivery process slightly. UPS drivers must pass the packages off to USPS, which then must sort them and ensure they get to the correct addresses. Is it cost effective?
But is it slower? But how much slower? UPS states that packages mailed via SurePost may take anywhere from two to seven days until arrival. The major source of the delay is the transfer of packages from one carrier to the other, but this is also the source of savings. When making the decision about whether this service is right for you, it helps to understand who might benefit most. The best approach is to look at your current shipping costs. Ask this question: Do these shipments need to arrive quickly?
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