Do you need to look at the delivery aspect of your online business?
Are you thinking of starting an online shop? If you are, and all the indicators imply that 2010 is going to be another year of growth for online businesses, then you need to look at the delivery options and delivery costs for your company.
If the items are small, low value and less than 2kg in weight then your best, economically viable option is the Royal Mail. If the items are worth more than £2,500 in value then you need to source alternatives or you will find you are not insured or under insured should something get lost in the post. Although the Royal Mail is very good, inevitably somethings will get lost, you will need to factor this in when pricing your products.
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Parcel carrier such as DHL and Interlink offer good prices for volume. Thats actual volume and not predicted volume. I mention this as people often prefer to state their forecasted volume and not their actual volume. If you say you are sending 50 packages a week and only send 10, you may get a surcharge added to your bill or charged at a higher rate, as discounts are specific to volume.
If your online business is selling bigger items such as
- beds
- sofas
- mattresses
- ovens
- white goods such as washing machines and tumble dryers
Then you need to look at the options available. Pallet networks are good for items that can be shipped on a pallet and withstand the weight of other items (depending on how the vehicle is loaded). Pallet networks work on strict capacities, items that are oversized or ‘ugly’ freight will be charged extra. This is not recommended for goods that are likely to break. A courier service normally charges a flat rate for your delivery based on the items, and while this may be slightly more expensive when just making a comparison on price, a good courier service won’t have the hidden surcharges.
For items that are ad hoc or don’t fit the Royal Mail, parcel carriers or the pallet networks, then a courier may fit the bill. A good courier service will help you source the right solution for your online businesses deliveries. Communication with a same day courier is better than what you get with the Royal Mail, parcel carriers or pallet networks.
Many online businesses leave the delivery aspect to the last minute and price it incorrectly, eroding into their profits. We suggest you look at a variety of transport suppliers for your needs and also take into account your customers needs.
Sarah
0844 884 3331
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Helpful post thanks. At my online store we ship all our products direct from the designer to the customer (dropshipping). Our shipping is priced according to value of individual items. This allows us to send items special delivery if the value of the item is high and needs insuring. We have also found it the most practical/fairest way to charge with a relatively simple shipping model. Alhough dropshipping helps us reduce our risk of unsold stock, it presents a new issue as we don't send out items from a central warehouse; that concering muti-item purchases. Whereby orders containing multiple items will be sent from two or more different locations to the customers, the postage adds up quite quickly. Customers have been quite vocal in feeding back that they don't wish to pay high postage Although they have been understanding when we explain the reasons behind this, its still not the ideal solution, so we are looking to change our model to get round this issue. The jury is stil out…
If anyone has had a similar experience/advice on this issue please get in touch. http://www.twitter.com/puredesign
With regards to Sarah's post – another issue with the multi nationals is that they often only offer a kerbside delivery service when delivering furniture and white goods for instance. This can be a major problem for the customer, especially if they live in a flat. Smaller courier and removal companies take the time to find out the customer's needs and wants, and would generally send a van with the relevant equipment and staff to carry out the delivery to the customer's satisfaction. Quite often we are telephoned by people who have paid for their kitchen appliances to be delivered, and then find that the driver has refused 'to do stairs' – so in effect they have paid twice for the delivery and probably had to wait in all day wasting their annual leave for it to be delivered. Another good reason to use your local courier/removals company.
Paul Westbrook