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What's the best way to choose shipping options for your products?

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Choosing the right shipping options for your products can make a big difference in your customer satisfaction, profit margin, and competitive edge. But how do you decide which shipping methods, carriers, and rates are best for your business? In this article, we'll guide you through some key factors to consider when selecting shipping options, such as your product characteristics, your target market, your shipping budget, and your risk management strategy.

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Marcelo Aparecido Cerri

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1 Product characteristics

The first thing you need to think about is the physical attributes of your products, such as their size, weight, shape, fragility, and perishability. These factors will affect the type of packaging, handling, and delivery services you need, as well as the cost and speed of shipping. For example, if you sell bulky or heavy items, you may want to use ground shipping or freight services, which are cheaper but slower than air shipping. If you sell delicate or perishable items, you may need to use special packaging, insurance, or expedited shipping, which are more expensive but safer and faster.

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2 Target market

The next thing you need to consider is your target market, or the geographic location and preferences of your customers. Depending on where you sell and ship your products, you may have to deal with different regulations, customs, duties, taxes, and delivery standards. You also need to understand what your customers expect and value in terms of shipping options, such as delivery time, tracking, convenience, and reliability. For example, if you sell to international customers, you may need to use global carriers, comply with export and import rules, and offer multiple currency and payment options. If you sell to domestic customers, you may need to use local carriers, offer free or flat-rate shipping, and provide flexible return and exchange policies.

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Marcelo Aparecido Cerri

Coordena??o/ Lideran?a/ Supervis?o (administrativo/facilites/manuten??o)
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Analisar, estudar e conhecer toda a cadeia logística envolvida no processo, para atendimento do cliente. Nos dias de hoje trabalhamos com diferentes segmentos de mercado e diferentes necessidades dos clientes. Cabe ao gestor da área, analisar os postos-chave para a tomada de decis?o mais assertiva no contexto de sua opera??o e se necessário, estar sempre avaliando a eficiência da opera??o.

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3 Shipping budget

The third thing you need to evaluate is your shipping budget, or how much you can afford to spend on shipping without compromising your profit margin or pricing strategy. Shipping costs can vary widely depending on the shipping methods, carriers, rates, and discounts you choose. You also need to factor in the costs of packaging, labor, inventory, and warehousing. To optimize your shipping budget, you need to compare different shipping options, negotiate with carriers, leverage bulk or volume discounts, and monitor your shipping performance. You also need to decide how to charge your customers for shipping, whether it's by using real-time rates, flat rates, or free shipping.

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4 Risk management strategy

The last thing you need to develop is your risk management strategy, or how you plan to prevent, mitigate, or recover from potential shipping risks and disruptions. Shipping risks can include damage, loss, theft, delay, misdelivery, or non-delivery of your products. They can also include external factors, such as weather, accidents, strikes, political unrest, or pandemics. To manage these risks, you need to implement some best practices, such as choosing reputable carriers, using quality packaging, securing insurance coverage, tracking your shipments, communicating with your customers, and having contingency plans.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Jebarson Paul J

Director - Cash Business Operations | MBA.DBA.DBM.PGDBM | Six Sigma Master Black Belt | Dale Carnegie Institute Certified Young Leader
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Determine your shipping objectives, such as speed, cost-effectiveness, or eco-friendliness. Know the size, weight, and fragility of your products. Identify any special handling or temperature requirements. Consider the desired delivery speed and select services that meet customer expectations. Some carriers offer flat-rate boxes for specific shipping needs, which can be cost-effective. Conduct occasional shipping option audits to ensure you’re using the most cost-effective and efficient methods. Pay attention to customer feedback regarding shipping experiences and adjust your options accordingly. Consider the desired delivery speed and select services that meet customer expectations.

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What's the best way to choose shipping options for your products?

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1 Product characteristics

2 Target market

3 Shipping budget

4 Risk management strategy

5 Here’s what else to consider

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What's the best way to choose shipping options for your products?

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1 Product characteristics

2 Target market

3 Shipping budget

4 Risk management strategy

5 Here’s what else to consider

Transportation Management

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