Understand How Shipping Works with Ecommerce

Posted by Kevin on Aug 28, 2009 in E-Commerce |

298459_6058 The web gives merchants a great advantage in the ability to sell products anywhere despite ones location. For internet retailers, shipping products to customers is expensive. When developing an e-commerce web site, merchants need to factor the cost of shipping in the business expense. The following video gives a great overview of some frequently asked shipping questions:

To understand shipping, merchants can get accurate estimates by using the online calculators provided by FedEx (www.fedex.com/ratefinder/home?cc=US&language=en, UPS (www.theupsstore.com/qcc/qcc.asp), and U.S. Postal Service (postcalc.usps.gov/). Looking at zones where the products ship is also significant. Prices increase as shipping distance increases. Merchants also need to be familiar with the weights of the products, shipping needs and zones that they will ship to. This allows for merchants to have an understanding of the shipping cost projections.

Utilize ecommerce solutions that integrate USP, FedEx or UPS in their shopping carts. Many ecommerce programs have built in calculation systems, which display accurate shipping rates based on total weight of order. In the customer’s shipping address, it relates to Internet shoppers using the platform. A realtime-shipping interface, which allows customers their preferred shipping provider as well as seeing shipping rates in the shipping cart would make it easier for the customer in choosing their shipping destination.

Merchants should also look into fulfillment solutions that reduce management expense while keeping order processing forward. They should consider the cost of third-party fulfillment services to what it costs to house merchandise, package items. Furthermore, merchants now have to be familiar with shipping expenditures.

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