Shipping Products From Home
If your homebased business involves shipping products to your customers, these tips will help you set up a system that works for you.
By Paul and Sarah Edwards
| September 14, 2004
URL:
http://www.entrepreneur.com/homebasedbiz/worklifebalance/advicefrompaulandsarahedwards/article72610.html
The Internet is changing the retail landscape, enabling hundreds
of thousands of people to make a full- or part-time income from
selling merchandise of all kinds via their own websites, auction
sites like eBay or online malls. One of the most critical elements
of this business-the one that can make or break you-is the
shipping.
Shipping products from home involves satisfying your customers,
maximizing the use of your time, and, of course, minimizing your
costs. To make sure you get this right, we interviewed eBay
PowerSeller and author Skip
McGrath to discover the secrets to successful shipping.
Volume
If you ship only three or four items a day, says McGrath, you
can easily handle your shipping manually-that is, hand addressing
labels, taking items to the post office and standing in line to
arrange delivery confirmation.
If you ship ten or more items a day, however, you'll want to
invest about $300 in a label printer and postage scale that
connects to your computer's USB or serial port so you can weigh
your packages. Then using a service like Endicia, you can type
in a ZIP code, and your postage will be automatically calculated
for you. The advantage of using a label printer instead of a
regular printer will help you save time because regular printers
require that you insert labels sheet by sheet which most likely
means you'll be getting up from your desk for each batch.
There are numerous sources for this type of equipment. Endicia,
for example, sells a starter kit that includes a postage meter and
label printer that complement its services. Stamps.com offers a
free postage scale with its $15.95 monthly service. And you can
almost always find postage scales and label printers for sale on
eBay.
When you get to the point where you're shipping 30 or more
packages a month, it's also time to think about getting an
account with UPS or FedEX Ground, so that you can scheduled them to
pick up your packages as needed.
Shipping Choice
For most items, shippers still generally choose to use the
Priority Mail option from the U.S. Postal Service because it's
usually faster than other standard delivery options (for example,
two to three days via the Postal Service vs. five to six days with
UPS Ground). For packages under five pounds and weekend delivery,
it's also cheaper. But for packages over five pounds,
you'll do better with UPS or FedEx Ground.
Value
If you ship high-priced items like artwork or jewelry
collectibles, McGrath says you should probably use overnight or
two-day air freight: Your merchandise will arrive sooner than
shipping via the U.S. Postal Service, and you'll increase the
certainty of your deliveries. Despite the post office's
delivery confirmation option, they're simply not as reliable as
UPS, FedEx or DHL. And with valuable merchandise, you just
don't want to take any chances.
Supplies
If you ship via the Postal Service, the post office's
Priority Mail supplies, including boxes, envelopes, tape and
labels, are free. McGrath points out that another free source of
supplies is retail stores because most cities have ordinances
requiring stores to recycle their shipping materials. Gift shops
and kitchen and hardware stores receive shipments daily so you can
arrange with these type of local stores to pick up supplies from
them on a regular basis.
If what's available for free doesn't meet your needs,
entering the phrase "packaging supplies" or
"shipping supplies" into a search engine will generated
results for suppliers offering thousands of shipping material
options.
To keep your shipping process orderly, it's a good idea set
up a special area of your home office or garage for shipping
activities. This way, you'll have an organized area where you
can keep your tape guns, boxes and other supplies at the ready so
you can efficiently box things up.
Cost
While customers love free shipping-some even search for it-if
you decide to go this route, you'll still need to either charge
for handling or build a handling cost into your product price. eBay
sellers routinely charge more than the actual shipping fee to cover
both their supplies and their time.
Authors and career coaches Paul and Sarah Edwards' latest
book is The Best Home Businesses for People 50+. You can
contact Paul and Sarah with your questions at www.workingfromhome.com.
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