A Step-By-Step Guide For Getting Your Products To Your Customers
A Step-By-Step Guide For Getting Your Products To Your Customers
CHAPTER 1
Introduction1
CHAPTER 2
Shipping Fundamentals 3
CHAPTER 3
Charging Customers 6
CHAPTER 4
Packaging14
CHAPTER 5
Shipping Your Package 38
CHAPTER 6
Scaling Your Shipping Strategy 52
CHAPTER 7
Conclusion55
CHAPTER 8
Bonus: Shipping Resource Roundup 57
i
Chapter 1 Introduction
CHAPTER 1
Introduction
Shipping in ecommerce is a lot more than getting your product from
point A to B. Your shipping and fulfillment strategy is an integral part of
your overall business profitability and your brand. If done correctly, your
shipping strategy and package can help foster repeat business and even
help acquire new customers through powerful word-of-mouth marketing.
However, done wrong and you run the risk of increased costs, unhappy
customers and potentially an unprofitable business.
Most people don’t realize just how important and complicated shipping can
be to your ecommerce business. Planning a shipping strategy well in advance
can be a huge asset to your business but is also critical from an operational
standpoint and should be revisited on an ongoing basis.
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Chapter 1 Introduction
In this guide, we’ll take you through all aspects of shipping and fulfillment.
From deciding on how to charge your customers, to packaging and branding
options, to choosing the best carrier for your business, deciding on options
like insurance and tracking, as well as outsourcing and fulfillment options.
This is the most thorough and complete guide to help you get your products
from you to your customers in a way that creates a great experience for them
and maintains a profitable business for you.
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Chapter 2 Shipping Fundamentals
CHAPTER 2
Shipping
Fundamentals
Shipping and fulfillment can be one of the most challenging aspects
of building an ecommerce business. The reason it’s so complicated is
because there’s a lot of variables that need to be considered and everyone’s
approach to shipping and fulfillment will be slightly different.
• Your brand
• Where your products are shipping from
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Chapter 2 Shipping Fundamentals
Not to worry though, with the help of this guide you’ll tackle each element so
that you can make the best decision for your business and your customers.
Shipping Strategies
When you’re starting an online business and choosing a shipping model,
you’ll have several major options to choose from:
*Dropshipping is not only a shipping and fulfillment model but also a business model. This
guide will not focus on businesses that are utilizing the dropshipping model. For more
information on dropshipping, please see The Ultimate Guide To Dropshipping.
When you begin your new business, it’s usually a good idea to begin by
shipping your initial orders yourself. This allows you to better understand
the many elements that come into play when shipping products and further
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Chapter 2 Shipping Fundamentals
help you refine operations and better control your brand while you scale
your business.
• Launch - In this stage, you’re likely receiving just the occasional order
sporadically with no real consistency.
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Chapter 3 Charging Customers
CHAPTER 3
Charging
Customers
NOTE: Before determining how you’re going to charge customers, you’ll want to go through
this complete guide and make some other decisions first. Things like packaging, the carrier
you choose, the need for insurance and tracking can considerably change and affect the
shipping price. This information is critical to determining what you end up charging customers
and how you charge them.
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Chapter 3 Charging Customers
Suddenly a product they thought was a fair price is starting to seem a little
expensive. One of two things happens next. Either they decide to continue
despite the increased costs, or they abandon their cart and leave your
website. The fact is, the majority of times, they abandon their cart, and
according to Statista, unexpected shipping costs are the number one reason
for shopping cart abandonment:
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Chapter 3 Charging Customers
Your shipping strategy and how you charge customers can be a critical
element in the success (or failure) of your online business. Let’s take a look at
some of the most popular strategies for charging your customers shipping:
3 Flat Rate Shipping - For example: $10 flat rate to all U.S.A.
With that said, large companies like Amazon have left many consumers with
the expectation that shipping should be free for consumers, so the marketing
effect of ‘Free Shipping’ on your website can be a significant advantage over
any competitors that don’t offer the same perk.
Deciding to offer free shipping will require you to either absorb the cost or
slightly increase your product prices to help cover or offset the cost to you
and the impact on your margins.
Free Shipping Over $X - Another option is to offer free shipping for orders
over a certain dollar amount. This type of offer can incentivize customers
with free shipping while providing you the benefit of helping to increase
your average order value (AOV).
The most common strategy for offering free shipping over a certain amount
is to get some sales under your belt first and determine what your average
order value is, then, offer free shipping on all orders X% greater than your
average order amount.
For example, let’s say you have some orders already for the following
amounts: $86, $112, $71, $65, $105
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Chapter 3 Charging Customers
If you add them all up and divide them by the total number of transactions
(5 in this case) you’ll get your average order value (AOV). In this case, it
works out to $87.90. With this particular example, you might want to offer
free shipping on all orders over $100. This will help increase your average
order size which should provide you with a little more profit that can help
you partially cover the cost of the free shipping.
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Chapter 3 Charging Customers
your competitors handle shipping, your average order size, and your profit
margin can help you make the best decision.
There are always small discrepancies that can happen but in many cases you
can end up breaking even between the shipping charges you collect and what
you ultimately have to pay to ship the package.
Simple Sugars, a store that was featured on Shark Tank, employs this
approach at checkout. Once a customer gets to the checkout, they select
where they want their order shipped to, and the calculator does the rest.
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Chapter 3 Charging Customers
Using a real-time calculator can help you earn trust with your customers.
The calculator acts as evidence that you’re not inflating your quoted shipping
fees or raising your item prices to cover the charges.
This is also a good option to use for heavy or oversized shipments that
you simply cannot or do not want to allow to ship out under a free
shipping promotion.
NOTE: You can purchase shipping labels directly in your Shopify admin to simplify your
fulfillment process and receive reduced rates with USPS. The costs of the shipping labels you
purchase are calculated according to the weight of your shipment, and are added to your
next Shopify invoice.
When you hit the right cost, you’ll probably be over - or under - the actual
shipping cost by a little, but it should balance out in the end.
J.Crew Canada, a clothing brand, utilizes the flat rate shipping approach,
and has a simple $9.95 charge for all orders and prominently displays it with
a popup on their homepage.
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Chapter 3 Charging Customers
- Angela Collison
The above quote highlights an important point about the nature of flat rate
shipping: figuring out what flat rate works for you, and if you need to do it
by order totals or weight ranges will require some testing.
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Chapter 3 Charging Customers
You’ll need to decide that will work best for your brand, business and
customers and will likely have to test a few methods before you settle on one.
In the next chapter, we’re going to show you how to select packaging for your
shipments that will create a great impression with your customers, is cost
friendly and protects your merchandise as it moves around the world.
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Chapter 4 Packaging
CHAPTER 4
Packaging
Packaging is a very important part of the shipping and fulfillment
process. It protects your products from bumps and bruises and is the first
thing your customer see when it shows up at their door. It’s your brand’s first
impression in-person and it’s a big deal.
In this chapter, you’ll learn all about how to package your products, the different
types of packaging available, and a plethora of resources to get you started.
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Chapter 4 Packaging
options, depending on cost can also affect the strategy you use to charge
your customers as packaging can be a significant contributing factor in your
overall shipping costs.
There are two extremes of packaging options with a whole lot of grey area in
between the two. Let’s take a look at those two extremes:
As mentioned previously, the two options listed above are extremes. For
most businesses, your packaging will likely fall somewhere in between utility
and some custom branded experience.
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Chapter 4 Packaging
Unless you’re shipping a very small or ultra durable product, most businesses
and products will require some type and size of box to protect the order for
safe transport, as well as some form of stuffing or product cushioning.
Depending on your business and your product line, you may want to
consider carrying a few strategically selected sizes of packaging materials,
like small, medium and large size boxes.
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Chapter 4 Packaging
What this boils down to is that you always want to use the smallest
packaging available, while still providing your products with enough
protection to get them to your customer safely.
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Chapter 4 Packaging
TrunkClub is one such company that has taken the customer unboxing
experience seriously. To start, instead of choosing a standard box sealed with
clear packaging tape, they opted for a custom printed box with a handle that
resembles a trunk, closely matching and accentuating their brand.
From the moment a trunk from TrunkClub arrives at your doorstep, you
know you’re in for a great experience and one you can’t wait to open.
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Chapter 4 Packaging
Inside the trunk, the contents are thoughtfully laid out to create a
presentation and experience. To further build a custom branded experience
for their customers, all orders include a handwritten card from a personal
stylist explaining the selection of products. It truly makes you feel part of
something special and exclusive.
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Chapter 4 Packaging
Consider this, with every package shipped, your customer’s experience with
your brand will either:
There are many ways, some even out of your control, that your customer’s
experience with your brand can fall below expectations. If everything goes well
and the shipping courier isn’t late, you may meet your customer’s expectations.
It’s the little extra things though, like great packaging, marketing inserts,
and surprises that will help you stand out, exceed expectations and get your
customer telling friends and family about your business.
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Chapter 4 Packaging
TrunkClub get their name out there to more people, along with valuable
backlinks to help improve their search engine rankings and visibility.
Let’s take a look at some elements you may want to consider in your
branded, unboxing experience:
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Chapter 4 Packaging
• Tape - The standard is clear packaging tape but these days you have
some options of different colored tape that can complement your
custom packing and brand colors.
Let’s take a look at some of the other top reasons packaging inserts are
so important:
• Packaging inserts are low cost - Below we will discuss five package
insert opportunity types, each of them are very low cost, yet can yield
high return.
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Chapter 4 Packaging
Package inserts seem pretty simple - just throw a flyer or coupon in the
box whenever you ship an order. However, there are a lot of options on the
table you can use and mix to deliver more value and build greater loyalty
with your customers. Let’s take a look at some of the most popular types of
packaging insert options.
1. DISCOUNT OFFERS
One of the most popular types of package inserts are discounts offer on
future purchases. Sure these could always be delivered by email but including
discounts or credits for future purchases right in the shipped box ensures your
customers will receive the offer and leaves them with a tangible reminder.
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Chapter 4 Packaging
One of the most cost effective ways to create discount or deal offers to be
included with your packaging is to print them at business card size (business
cards are such a commodity at this point they are extremely inexpensive).
You can use a service like VistaPrint, OvernightPrints or, for a more
premium quality, Moo Cards and upload your images for print. You may
want to consider including two discount cards with each purchase, one for
the purchaser and one for the purchaser to give away to a friend. You may
also want to test out different types of offers to see which one your audience
responds best to.
For example:
TIP: To create your print design, you can use the native design and template tools with each
service or you can use an online service like Canva.
2. PRODUCT SAMPLES
Samples can be a great value add to your packages for a few reasons. First,
depending on the products you sell, you can sometimes get samples for free
from your vendors. Second, product samples provide a great way to cross-
sell customers and introduce them to other products and product lines that
they may not know about or have been curious about trying.
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Chapter 4 Packaging
3. SMALL GIFTS
Much like samples, small gifts can be a great way to surprise and delight
customers without them feeling like you are trying to sell them on other
products. The gift you give doesn’t have to be expensive. Since it’s not
expected, most people will be pleasantly surprised by any additional gifts.
Take for example what Ryan French did. As the founder of GameKlip, he
decided to add a small package of candies with every order. It was so well
received by his customers that they talked about it all over social media,
forums and blogs. Today, if you search Google for “GameKlip Rockets
Candy” you’ll find nearly 27,000 results of people talking about the surprise
they received.
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Chapter 4 Packaging
GameKlip isn’t the only one taking advantage of adding small gifts to their
packages. Johnny Cupcakes, a popular streetwear brand, knows exactly
how well additional inserts can impact a customer’s experience. They include
a variety of items in their packages that provides additional value and leaves
customers with a smile.
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Chapter 4 Packaging
Just how effective can a small, almost valueless gift be? It’s been well
documented that the little candies delivered by servers at the end of a
restaurant meal help increase tips.
Experiment #2 found that tips varied with the amount of the candy given to
the customers as well as the manner it was delivered.
So what can be learned from this study? The little, seemingly valueless gifts,
combined with some personalization and presentation makes people feel
special encouraging them to return the favor. It’s the law of reciprocity and
it’s a powerful psychological trigger.
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Chapter 4 Packaging
A customer appreciation campaign like the one from 2BigFeet has the ability
to produce massive results and can be done with a very small financial
investment for the cards and just a small time commitment to write them.
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Chapter 4 Packaging
Here are some quick tips on writing a thank-you note to your customers
from Gregory Ciotti from Help Scout:
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Chapter 4 Packaging
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Chapter 4 Packaging
Custom boxes tend to be the most expensive costs associated with creating
a custom branded unboxing experience. To have your own custom printed
boxes you can be looking at a minimum order of 500+ and can cost $5-$25
per box.
Being creative can easily help you save costs and achieve similar results.
Consider pre-designed colored boxes from places like Uline. These boxes
come with much lower minimum orders and prices, at little as 50 boxes at
$2.50 per box.
If you wanted to further customize the experience you can consider adding
printed stickers with your logo from a service like Sticker Giant or a
similar service.
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Chapter 4 Packaging
Use the chart below to help plan out what elements you want to include for
your customer branded packaging and unboxing experience as well as the
costs associated with it:
Packaging Resources
If you’re looking for packaging material to create a great branded unboxing
experience for your customers, take a look at our shortlist below of some
great suppliers of various packaging supplies:
Standard Boxes
• Uline
• ValueMailers
• Fast-Pack
• eSupplyStore
• Papermart
• eBay
You’ll also want to consider local packaging options. Many times, purchasing
your main packaging locally can be cheaper by saving the shipping costs,
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Chapter 4 Packaging
which tends to be fairly expensive due to the size of boxes. Check online for
packaging suppliers and box manufacturers in your area.
Custom/Unique Boxes
• Custom Boxes Now
• Any Box Today
• Uline - Colored Boxes
• Box Geek
• Custom Boxes And Packaging
• InstaBox (Canada)
• Packlane
Tape
• Tape Jungle
• Uline - Tape
Envelopes
• Envelopes.com
• Uline - Envelopes
Stickers
• Sticker You
• Sticker Giant
• Sticker Mule
Bonus: Free Shipping Supplies. Many carriers will offer a selection of free
packaging products when you use them. Here are links to free packaging
supplies from some of the biggest carriers: USPS, UK Royal Mail, FedEx, UPS.
There are several options you can use to fill void spaces in your packaging
and cushioning to protect your products including bubble wrap, foam,
tissue paper, air pillows and packing peanuts.
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Chapter 4 Packaging
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Chapter 4 Packaging
without breakage. Doing this test on your packaging ensures that your
products will be able to withstand typical impacts during shipping.
The 4-foot drop test consists of dropping your package at five different angles:
In addition to the drop test, your products and packaging should be able to
withstand a full minute of vigorous shaking without any contents breaking.
• USPS Domestic
• USPS International
• Canada Post
• UK Royal Mail
• Australia Post
• FedEx
• UPS
• DHL
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Chapter 4 Packaging
As you grow there are variety of shipping apps and tools that can further
help you streamline your shipping process. This includes simple apps like
the Shopify Order Printer which will help you print invoices, labels,
receipts and packing slips, as well as more full-featured shipping apps like
Shipstation or Shippo. Shipstation and Shippo will integrate with many of
the most popular courier companies and your ecommerce platform so that
you can print more than just shipping labels but the postage as well, charging
it directly to your account.
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Chapter 4 Packaging
Printers like these can really help you streamline and speed up your shipping
and fulfillment as well as make your packages look more professional.
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Chapter 5 Shipping Your Package
CHAPTER 5
Shipping Your
Package
When it comes to shipping your packages, you need to decide which
shipping courier or couriers to partner with. Remember, the received
package is the first physical touchpoint your customer will have with your
brand. When choosing a shipping carrier, you’re choosing a business
partner, you want the best representative of your brand.
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Chapter 5 Shipping Your Package
That’s why shipping within your Shopify Admin is more important than ever.
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Chapter 5 Shipping Your Package
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Chapter 5 Shipping Your Package
3 You can skip the line at the post office by purchasing and printing
labels at your convenience, when you want, wherever you want.
Visit the Shopify hardware store to stock up on everything you’ll need for a
do-it-yourself shipping station.
Ready to ship? Simply stick the label on your package and drop it off at any
USPS office. Because your package is ready to ship, you’ll be able to skip the
line. Or, if you have at least one priority package, you can schedule a free
home or office pickup.
NOTE: Want more details on shipping within your Shopify Admin? Be sure to checkout our
dedicated documentation for a more in-depth look into shipping.
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Chapter 5 Shipping Your Package
• USPS
• Canada Post
• UK Royal Mail
• Australia Post
• FedEx
• UPS
• DHL
• Package Size
• Package Weight
• Departing Country/City
• Destination Country/City
• Tracking Options
• Insurance Options
• Volume of Orders
• Negotiated Discounts
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Chapter 5 Shipping Your Package
Below is a list of shipping calculators for some of the most popular shipping
couriers so you can easily find the most cost effective option for your
business needs.
• USPS
• Canada Post
• UK Royal Mail
• Australia Post
• FedEx
• UPS
• DHL
NOTE: It’s important to experiment with these calculators for different box sizes to see
the effect on shipping costs. This can help you choose the right size packaging to save on
shipping costs.
Package Insurance
Depending on what you’re selling and its value, shipping insurance can offer
a great deal of security to you.
Shipping insurance is a service which may reimburse you when parcels are
lost, stolen, or damaged in transit.
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Chapter 5 Shipping Your Package
Package Tracking
Being able to track packages is beneficial so you can confirm delivery should
there be any issues, however, it’s particularly valuable to customers as it
allows them to see where their merchandise currently is and help them
predict delivery.
It’s also important to note that with some carriers, payment providers
(PayPal) and 3rd party insurance providers, tracking is the only way to
prove you shipped a product to the customer and is often required to receive
insurance compensation in the event a package goes missing.
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Chapter 5 Shipping Your Package
Just like package insurance, your other option is to only provide tracking
on higher value shipments, or ones that you deem to be high risk of either
postal loss, or customers making the claim their package never arrived.
Vice-versa, if the majority of your orders are high-value, you may want to
consider a 3rd party insurance provide that can provide blanket rates on all
your shipments.
Here’s a list of some of the most popular shipping carriers with direct links
to get set up with a business account:
• Canada Post Venture One - The Venture One account with Canada
Post can help you save 5% on shipping and packaging products as
well as upgraded services on parcel shipping.
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Chapter 5 Shipping Your Package
BONUS: Free Shipping Supplies. Many carriers will offer a selection of free packaging
products when you use them. Here are links to free packaging supplies from some of the
biggest carriers: USPS, UK Royal Mail, FedEx, UPS.
Shipping Profitably
One of the best and least talked about secrets to being successful at
ecommerce is to figure out how to ship profitably. Because shipping
represents a significant expense for ecommerce merchants, if you don’t do
your research, you could end up losing money on shipping and this can
significantly affect overall profitability.
Before you finalize your pricing and strategy for your ecommerce store you
should use a chart, like the one below to map out all your costs associated
with getting your products into your customers hands.
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Chapter 5 Shipping Your Package
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Chapter 5 Shipping Your Package
Check with your country’s postal service or courier of choice to find out
exactly what forms you’ll need to attach to your package. These forms should
be completed honestly and clearly to prevent your package from getting held
up in customs.
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Chapter 5 Shipping Your Package
• Country of export
• Country of import
• Product classification
• Product material origin
• Manufacturing country
• Value of shipment
To get an idea of what fees your international customers may incur, check
out this duty calculator.
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Chapter 5 Shipping Your Package
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Chapter 5 Shipping Your Package
• USPS
• Canada Post
• UK Royal Mail
• Australia Post
• FedEx
• UPS
• DHL
In the next chapter, we’re going to show you how you can use outside help to
scale your shipping operation, while lowering your costs as your business grows.
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Chapter 6 Scaling Your Shipping Strategy
CHAPTER 6
Scaling Your
Shipping Strategy
As your business grows and your order volume increases you will
probably want to consider the advantages that a fulfillment warehouse
affords you.
A fulfillment warehouse can help automate and handle your shipping for
you. When you choose to work with a fulfillment warehouse, you store your
inventory at one of their warehouses. Depending on their level of integration
with your shopping cart, when an order comes in, your fulfillment partner will
automatically be forwarded the order to pick, pack and ship on your behalf.
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Chapter 6 Scaling Your Shipping Strategy
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Chapter 6 Scaling Your Shipping Strategy
Fulfillment Conclusion
Working with a fulfillment warehouse is a logical step for ecommerce
businesses once they have some predictability and regularity of orders.
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Chapter 7 Conclusion
CHAPTER 7
Conclusion
Shipping is a challenging obstacle for any ecommerce business. The
many variables involved in shipping a product from point A to point B
means every businesses shipping strategy will be unique to their product,
customers, business and location.
Every business will have their own unique challenges they will need to work
through and overcome to develop the best and most efficient strategy for
them. Like many aspects of building your new business though, it will take
time and tweaking to determine what works best.
Understanding all the variables and evolving your shipping strategy with
your growing business is vital to its long term health and success. So once
you think you have it figured out, don’t let it go stale. Reevaluate every six
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Chapter 7 Conclusion
months to make sure you’re delivering the absolute best possible service and
experience for the best possible price to your customers.
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Chapter 8 Bonus: Shipping Resource Roundup
CHAPTER 8
Bonus: Shipping
Resource Roundup
Throughout this guide we have provided lots of resources to help you
ship your products. We have rounded up these resources in this chapter for
easy reference as you build your shipping strategy.
NOTE: Want an easy solution to all of this? Be sure to checkout how to print shipping
labels directly within your Shopify Admin. We’ve made it a flawless and inexpensive way
to print shipping labels, and fulfill orders directly from your orders page. Read up on the
documentation here.
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Chapter 8 Bonus: Shipping Resource Roundup
Packaging Resources
Standard Boxes
• Uline
• ValueMailers
• Fast-Pack
• eSupplyStore
• Papermart
• eBay
Custom/Unique Boxes
• Custom Boxes Now
• Any Box Today
• Uline - Colored Boxes
• Box Geek
• Custom Boxes And Packaging
• InstaBox (Canada)
• Packlane
Tape
• Tape Jungle
• Uline - Tape
Envelopes
• Envelopes.com
• Uline - Envelopes
Stickers
• Sticker You
• Sticker Giant
• Sticker Mule
BONUS: Free Shipping Supplies. Many carriers will offer a selection of free packaging
products when you use them. Here are links to free packaging supplies from some of the
biggest carriers: USPS, UK Royal Mail, FedEx, UPS.
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Chapter 8 Bonus: Shipping Resource Roundup
• USPS Domestic
• USPS International
• Canada Post
• UK Royal Mail
• Australia Post
• FedEx
• UPS
• DHL
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Chapter 8 Bonus: Shipping Resource Roundup
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Chapter 8 Bonus: Shipping Resource Roundup
• Canada Post Venture One - The Venture One account with Canada
Post can help you save 5% on shipping and packaging products as
well as upgraded services on parcel shipping.
• USPS
• Canada Post
• UK Royal Mail
• Australia Post
• FedEx
• UPS
• DHL
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ABOUT THE AUTHOR
Richard Lazazzera
Richard Lazazzera is an ecommerce entrepreneur and
content strategist at Shopify. He is also the founder
of A Better Lemonade Stand, a blog dedicated
to reverse engineering the process of building and
growing ecommerce businesses.
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