So, when is it cheaper for merchants to use flat-rate shipping – and when is it not? While it can save you money, flat-rate shipping methods can also be too standardized to cater to the unique needs of every merchant. But this doesn’t mean that flat-rate shipping is a one-size-fits-all solution for every e-commerce business.
This is why it’s essential to have an optimized shipping strategy that provides the right cost savings in the right places.įlat-rate shipping is a popular shipping method for merchants who are looking to simplify their shipping strategy and their fulfillment process. The higher your shipping costs are, the slimmer your profit margins will be. Shipping is one of the biggest fulfillment costs that you’re going to shoulder as an e-commerce business. Written by Beth Owens on November 3rd, 2021 The USPS also restated in today’s alert what it had told us last month: “Customers with Priority Mail Regional Rate Boxes in their inventory can still use them to ship, but they will be treated as weight and rate packages.E-commerce Omnichannel Retail Technology Transportation You can learn more about alternatives to Priority Mail Regional Rate in last month’s coverage, “The Demise of the USPS Regional Rate – Is There a Substitute?”
One change that has nothing to do with simplifying postal operations is the practice of hiking rates during the peak holiday-shopping season, but that has also gotten little attention from anyone but small shippers. Paradoxically, sites like eBay and Etsy earn more in fees the higher the shipping costs, but it’s unclear if they saw any change in the number of sales of such products. Shippers now pay a $4 nonstandard fee for a tube greater than 22″ and a $15 nonstandard fee for a tube greater than 30″.Īs we’ve previously noted, online marketplaces have stayed silent about the nonstandard surcharges.
Usps pricing tiers movie#
In a similar move that proved much more disruptive to sellers of certain items, the USPS instituted a costly surcharge on long skinny packages containing products like movie posters, golf clubs, fishing poles, plants, baseball bats, and windshield wipers. Priority Mail Cubic has zone pricing with five price tiers up to 0.5 cubic feet (see Notice 123 – Postal Explorer ()).” Priority Mail Cubic packages must measure 0.5 cubic feet or less, weigh 20 pounds or less, and the longest dimension may not exceed 18 inches. This option offers similar cost savings as Regional Rate boxes. Priority Mail Cubic is a sub-service of Priority Mail in which the commercial customer ships using their own packaging and the pricing is based on the outer dimensions of the package rather than weight. “The recommended alternative is Priority Mail Cubic. In Friday’s announcement, the USPS suggested an alternative once the new policy takes effect on Janu(still subject to approval by the Postal Regulatory Commission): Regional Rate Boxes A and B are best used for small, dense packages being shipped short distances. Readers had discussed in September what the news meant for sellers when EcommerceBytes first reported its pending demise. On Friday, it issued an industry alert detailing the end of Priority Mail Regional Rate. The USPS continues to shake up services popular with online sellers as it looks to cut costs and streamline operations.
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