How Business Owners Can Save on Shipping Costs with Flat Rate Shipping

Being an ecommerce business owner comes with many responsibilities and one of the most critical aspects is fulfilling orders. With numerous shipping methods available, selecting the best one is vital to your online store's success. Flat-rate shipping is an excellent option you can depend on in such a situation, but it's important to understand when it is most beneficial. Read this blog to familiarize yourself with what flat rate shipping is and when it becomes advantageous.

What is flat rate shipping?

Flat rate shipping is a shipping option where the cost of shipping remains the same regardless of the weight, size, or distance of the package being sent. This means that customers pay a predetermined flat rate for shipping, regardless of how heavy or bulky their items are or how far the package needs to travel. However, this shipping method will only be accessible at checkout if the order subtotal meets the specified minimum amount, as determined by the shipping rate type. Customers cannot choose flat rate shipping for orders below this minimum threshold.

How will it bring benefits to you and your customers?

For you:

1. Simplified shipping costs: Flat rate shipping allows for easy shipping cost calculations, making it more manageable to handle and account for shipping expenses.

2. Predictable revenue: With a fixed shipping fee, you can better predict and plan for incoming revenue, ensuring a more stable financial outlook.

3. Competitive advantage: Offering a flat rate shipping option can attract more customers and give you a competitive edge in the market, especially if others charge variable or higher shipping costs.

4. Encourages bulk purchases: By having a fixed shipping cost, customers will add more items to their cart to reach the minimum order subtotal for flat rate shipping, leading to larger sales.

For customers:

1. Transparency: Customers will appreciate the openness of a fixed shipping fee, as they know exactly how much they will be charged at checkout, regardless of their order size.

2. Cost savings: For customers who buy multiple items or larger orders, flat rate shipping can be more cost effective compared to variable shipping rates based on the number of items or weight.

When should you use flat rate shipping?

You should consider using flat rate shipping in certain situations to simplify the shipping process and provide predictable costs for customers.

1. Standardized products: If your online store sells products of similar size and weight, using flat rate shipping can be practical. The shipping cost remains the same, making it easier to calculate and manage.

2. Domestic shipping: For domestic orders, flat rate shipping is effective when the delivery distance doesn't vary significantly. If most of your customers are within a specific region or country, using a flat rate shipping option can make the checkout process faster and less complex.

3. Small and medium sized items: Flat rate shipping is particularly beneficial for smaller and medium sized items that fit within a specific packaging size. This allows you to set a single fixed rate for shipping such items, which can be attractive to customers who prefer simplicity.

In which situations should you avoid using flat rate shipping?

You should avoid using flat rate shipping in certain situations where it might not be the best choice:

Large or heavy items: Variable shipping costs based on weight and dimensions are more suitable for these products. Using flat rate shipping may result in either overcharging customers or absorbing higher shipping costs, leading to a profit loss.

Remote or distant locations: In areas with varying distances from the fulfillment center, flat rate shipping may not accurately reflect shipping expenses.

Expedited shipping: It is not ideal for customers who require quick deliveries. Expedited shipping options typically require precise calculations based on weight, delivery speed and destination, which are better suited for dynamic shipping rates.

Carrier rate fluctuations: Risky if carrier rates frequently fluctuate due to market conditions, as it may result in insufficient shipping charges or overcharging customers.

Setting Up Flat Rate Shipping on ZenBasket

If flat rate shipping aligns with your ecommerce business needs, follow these steps to set it up in your ZenBasket store:

1. To set up flat rate shipping in your online store, click "Set up Flat Rate" from the shipping options.

2. Enter a shipping name. Add a description for customers to see during checkout. This can include information about the delivery, how the shipment will be handed over to the buyer, any potential additional charges or any specific instructions for the buyers.

3. Set the 'Minimum Order Subtotal' required for the flat rate to apply.

4. Next, the type of shipping is set by default to local delivery.

5. You can enable the option to display an estimated delivery time for customers.

6. Enter the number of days it takes to prepare an order before shipping and the number of days it takes to deliver the order. You can also specify the time of day at which an order should be placed.

7. Define the shipping or delivery region to specify where the orders will be shipped using this particular delivery method.

8. Select the shipping and delivery rate, which can be based on the order subtotal or the order subtotal plus tax.

9. Finally, enter the shipping or delivery rate type as either an amount (a fixed value) or a percentage (a portion of the order subtotal).

10. Save the changes and now the flat rate shipping option will be set up and available for customers to use during checkout.

To gain further insights into the process of setting up flat rate shipping in your ZenBasket store, we recommend watching this video Flat Rate Shipping | Training Video

Make a thoughtful selection and cut down on shipping costs

Making wise shipping decisions, such as offering flat rate shipping, is crucial for achieving success in a competitive market. By focusing on efficient shipping and meeting customer expectations, you can establish your place in the market and thrive even in challenging times. Ready to get started? Sign up to ZenBasket and simplify your shipping with flat rate options.