Small businesses often face the question: how appropriate is it to compete with giants in such platforms as Shopify, Etsy, Amazon when it comes to delivery? Regardless of size, niche, and even experience, delivery to any corner of the world is what unites all eCommerce stores. The good news for the small print on demand stores is that there are strategies to reduce costs.

Ecommerce is now in a golden age. Nevertheless, some events affect demand, purchasing power, user experience, etc. Thus, it’s vital to manage finances to a limited extent properly. The pandemic provoked the bankruptcy and closure of many physical stores, but they could get a second wind by trading online. Consumers still prefer discounts or free shipping - and this is the real evil that most online sellers suffer from. How to lower shipping costs and give people what they want, read on.

The shipping process inside out
If we simplify the print on demand dropshipping process to simple operations, it all comes down to the product manufacturing, packaging, and transferring to the client. And the critical point is that the parcel must be delivered on time and in perfect condition. In case of damage or worst-case scenario when it’s not supplied, it'll lead to a wrong impression of your brand and lower the reputation in the market.

The delivery cost includes the following parameters:
Packing: box, polyethylene, filler, scotch tape, stickers
Labor costs
Courier services
Import/ export charges in the case of print on demand international shipping.
As a seller, you must report the cost openly - establish a delivery policy that legally describes the compliance of the ordered product, timing, and price to customer expectations. It’s essential to perceive such tactics as an ally and a reliable asset, which will help solve any problems and answer all the questions.

Shipping cost for small businesses plays a key role: it affects whether a customer is going to buy the product.

How to Dropship on Shopify

To properly configure delivery settings, analyze the following aspects:
Shipping prices

If you work on the Shopify platform, it’s worth considering that carriers such as USPS, UPS, DHL Express, and Canada Post may be used at reduced rates depending on the subscription. E.g., a Basic Shopify subscription provides savings of up to 77.13% for UPS and 71.5% for DHL Express international shipping.

Preferred delivery methods

Courier
Pickup service
Urgent delivery
Postamates
Product Weight

If you utilize the packaging of the same goods, set the price as the default option on the expanses of your store.

Perfect packaging look:

Envelopes
Corrugated boxes
Lightweight air pillows
Packing paper
Versa Pak wadding rolls
Bubble wrap
Foam inserts
Excelsior
Custom shipping package
Tip: check if your carrier offers free packaging

Printing of the delivery label

When the client pays the total cost, you bear the cost of delivery label printing. But your savings can largely depend on the Shopify tariff plan.

Pricing plans
Exact cost

The term implies invoicing at the same price as USPS and DHL couriers. If you’re in the US or Canada, you can use the Shopify functionality to calculate exact rates.

How to calculate shipping costs for an online store? Specify the data for the following parameters:

Shopify tariff;
transportation type: local or international;
location data;
packaging.
Fixed cost

That’s a fee charged based on the product's weight, the client's location, or the total order cost. You can request $5 for any order shipped within Florida. It shouldn’t affect your profits and offer customers an attractive discount.

Tip: depending on the size, you can try to work with different services. When it comes to sending goods within the country, the most optimal option for small and medium-sized packages will be the Postal Service's Priority Mail. For those that are bigger, FedEx Ground or UPS Ground. Overnight shipping will be the cheapest, especially with Postal Service Priority Mail Express.

Free shipping

According to research, almost half of buyers abandon carts due to high additional costs (e.g., shipping and taxes). Therefore, more and more digital marketers are offering buyers free shipping if they buy a product for a certain amount.

Tip: use this method for inexpensive products.

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Author's Bio: 

Software Development for Your Company's Growth