Shipping

Definition:

The business of sending or transporting goods

Sending your mail or packages under the appropriate U.S. PostalService (USPS) classification can save your business hundreds–oreven thousands–of dollars each year, depending on how much and howfrequently you mail. The USPS divides mail into sixclassifications:

  1. Express Mail
  2. Priority Mail
  3. First-Class Mail
  4. Periodicals
  5. Standard Mail (A)
  6. Standard Mail (B)

Express Mail offers next-day service 365 days a year. PriorityMail can be used when the speed and expense of Express Mail aren’tnecessary but preferential handling is still desired. Priority Mailoffers two-day delivery to most U.S. addresses. The maximum weightfor Priority Mail is 70 pounds.

Your local post office can supply you with Priority Mail labels,stickers, envelopes and boxes at no extra charge. The 2-poundflat-rate envelope is typically convenient to use. The rate ofpostage is the same as that charged for a 2-pound piece of PriorityMail, regardless of weight. A presort discount is available forlarge mailings. Priority Mail can be insured, registered, certifiedor sent c.o.d. for additional charges.

First-Class Mail is used for sending letters, postcards,greeting cards, checks and money orders. If your first-class itemweighs more than 11 ounces, use Priority Mail. Additional servicessuch as certificates of mailing, certified, registered and c.o.d.can also be purchased for First-Class Mail. All First-Class Mailreceives prompt handling and transportation.

The periodicals rate is available to publishers or registerednews agents approved for periodicals mailing privileges. Otherrates must be paid for magazines and newspapers mailed by thegeneral public.

Standard Mail (A) is used primarily by retailers, catalogers andother advertisers to promote their products and services. This isthe type of mail you’d be using if, for example, you were sendingout a direct-mail piece to 1,000 potential customers. To qualifyfor standard mail (A) rates, you buy a standard rate permit fromthe post office. There is an annual fee for this (about $150), andother fees may be charged depending on the degree to which you areautomating your mail. Standard Mail (A) is available in twosubclasses: regular (also called “bulk rate”) and nonprofit.Standard rate (B) is for parcels weighing 1 pound or more.

For a mailing to get Standard Mail (A) rates, you must bemailing a minimum of 200 pieces or 50 pounds per mailing; thepieces must each weigh less than 16 ounces. There are manydiscounts available. Essentially, the more work you do in advancein terms of sorting, bundling and labeling, the lower postal rateyou’ll pay. At the minimum, nonautomated level, you’ll need topresort your mail by ZIP code, mark it with “Bulk Rate” and pack itin trays. The more automated you get, the lower your per-piecemailing cost gets. The post office has specific guidelines forautomation, including bar-coding, standards for address accuracyand requirements for automation compatibility.

To find out more about mail classifications and how to prepareyour mail the least expensive way, visit the USPS website or go to oneof the USPS Postal Service Business Centers. These centers canadvise you on preparing and designing mailings, discounts forpresorting and saturation mailings, bar-coding, ZIP+4 strategiesand other ways to cut your mailing costs. Some also sponsoreducational seminars for business owners. The USPS will also bringyour mailing list up to its standards and add the ZIP+4 extensionto all complete addresses once at no cost. To find out where theclosest Business Center is, contact your local post office.

When it comes to shipping packages overnight, not everyone wantsto use the USPS. Fortunately, there are a variety of ways to sendovernight mail. The biggest players in the field, next to the USPS,are DHL Worldwide Express, FedEx and UPS. Each will come right tothe doorsteps of even the smallest home based businesses.

When deciding on an express mail carrier, first think about theservices you need. Will you be sending one package per week or 15per day? Domestically or internationally? Do you want delivery thesame day, the next day, or in two or three days? Will you beshipping by air or ground?

When you are choosing an international courier, first ask thecompany for a list of countries it delivers to. Also remember thatcourier services overseas differ from domestic services in twoways. First, your package may be turned over to a foreign deliveryservice once it reaches the country to which it’s being sent.Second, customs regulations require documentation for clearance ofyour export shipments.

Whether domestic or international, ask about a courier’s hoursand days of service and if there are extra charges for deliverieson Saturdays. Companies may allow you to set up daily pickup timesor may provide pickup on an as-needed basis. Typically, you getvolume discounts based on how much mail you send.

Most companies also offer a range of delivery times–forexample, “next business day, a.m.” or “next business day, p.m.”Some may even offer same-day delivery for an extra fee. Otherservices offered may include management reports and acknowledgementcards.

Courier services are highly competitive and are eager to acquirenew business. As a business owner, you have clout with courierservices, so don’t hesitate to ask questions and negotiate forspecial rates and services. Once you know what your express mailneeds are likely to be, compare them against what the differentcourier services offer.

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