Big News: FounderDating is joining OneVest to build the largest community for entrepreneurs. Details here
Latest Notifications
You have no recent recommendations.
Name
Title
 
MiniBio
FOLLOW
Title
 Followers
FOLLOW TOPIC

Question goes here

1,300 Followers

  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur

How do B2C companies (with a physical good - like dollar shave club) save on shipping?

I've validated an idea (via testers and people willing to pay for my product) and am in the process of figuring out pricing and building out the order form. The thing that is eating up so much in to our costs is the cost of shipping-- right now it accounts for almost half of production costs, when the product itself is around 10 dollars. Does anyone have suggestions for saving on shipping costs? right now the cheapest I've found is USPS (if it fits it ships at 5.2-5.7$)

6 Replies

ian johnstone
1
0
ian johnstone Advisor
Startup founder/advisor/consultant. Passionate about Tech for Good.
You can negotiate discounted rates with some of the big shippers (Fedex, UPS) when you're doing high volume, but I think you need to be doing something like $10k/month to get their attention. They also have options like Surepost or Smartpost where they work with USPS for the last leg of delivery.

There's regional shipping options that can be much cheaper (in California we have OnTrac, which ships to 7 western states for pretty cheap). If you're shipping to all 50 states it can be a bit of a hassle because you'll have to use different shippers for different packages.

These options might help marginally, but the truth is shipping is pretty expensive and tough to get around. There's big savings are if you can get the package under 13 oz and send them USPS first class.
Arthur Veytsman
0
0
Arthur Veytsman Entrepreneur • Advisor
Founder at Immerss, 6x Entrepreneur & Angel Investor. Building relationships with Angel Investors worldwide.
Have you tried configuring the cost of storage and shipping through Amazon? check out our new mobile app! [Description: Muv] arthur veytsman muvpeople.com O 214 461 6933 | C 972 880 5754 map | vCard | email [Description: Facebook][Description: LinkedIn][Description: Twitter]
Antonio Rocha-Ferreira
0
0
Antonio Rocha-Ferreira Entrepreneur
Turning data into products
You haven't told us much. Obviously that the supply chain/shipping can make for 30 to 50% of pricing, specially if you are buying things from China. At a Startup level, I would try to find a local supplier, especially if you have customisation requirements built in the productcharacteristics and know how that you want to build upon. Are we talking about a whole container? Of that particular product, you need to already have a very good customer base before committing. That doesn't seem applicable to the stage you're in, proof of concept. Find a local supplier. They're much more controllable than overseas and the quality is probably higher. Are you talking about delivery to final customer? If so, are your customers concentrated on big cities? How much would be to get a partner for distribution in each city? Do you have to go with a big brand? Why? Less hassle? Well, business is hassle. Thats why most people aren't entrepreneurs.
Bill Duncan
0
0
Bill Duncan Entrepreneur
Customer Sales,Industrial Engineering,Packaging,Logistics&Supply Chain
Fareez, I would suggest that you go back to the way that the product is packaged and examine the basic function of the package .Also explain to me if your paying for actual weight versus volumetric weight.I need more details in order to give you advice.
Syed Masud
0
0
Syed Masud Entrepreneur
Senior Staff Software Engineer at Motorola Inc.
USPS is the cheapest in general. If you have a large volume of shipments, you can contact UPS or Fedex as a business and see if they can give you any special deal. The company I work for is getting a pretty good deal from Fedex and uses Fedex for most of its shipments.
Huan Liu
0
0
Huan Liu Entrepreneur
Co-founder at Vimo Labs Inc.
Check out the various mailing houses, they have volume discount with USPS. If you have the volume and do not mind paying a yearly fee, you can sign up with USPS for volume discount too.

In our case, we mail out iPhone cases. If we mail through USPS at a retail location, they charge us $2.32 just for the shipping cost. Through a mailing house, we get the cost down to <$1 if we ship 500 pieces with them at a time. Half of this cost is for the mailing house to buy the envelop, print the label, package and sort the item, and the other half is USPS postage fee. So, in our case, it is a substantial saving over USPS retail. Your mileage may vary depending on your item size and weight.
0
0
X
Entrepreneur
Fareez, I agree with others about the lack of details. What are the dimensions and weight of your product? It would also be helpful to know your current volume and where you expect to be in 6-12 months. I've partnered with fulfillment companies in the past and saved a lot of money. It depends where you're manufacturing and what your current process is.

Once I know more details about your situation I might be able to make an introduction to a company that can save you substantially over your current USPS fees.

Join FounderDating to participate in the discussion
Nothing gets posted to LinkedIn and your information will not be shared.

Just a few more details please.

DO: Start a discussion, share a resource, or ask a question related to entrepreneurship.
DON'T: Post about prohibited topics such as recruiting, cofounder wanted, check out my product
or feedback on the FD site (you can send this to us directly info@founderdating.com).
See the Community Code of Conduct for more details.

Title

Give your question or discussion topic a great title, make it catchy and succinct.

Details

Make sure what you're about to say is specific and relevant - you'll get better responses.

Topics

Tag your discussion so you get more relevant responses.

Question goes here

1,300 Followers

  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
Know someone who should answer this question? Enter their email below
Stay current and follow these discussion topics?