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Flat Rate Shipping

Importance of Flat Rate Shipping for an eCommerce Business

With e-commerce quickly growing year after year, the shipping procedure will need to scale up too. The cost of delivery is the main commercial constraint for more than half of merchants. As customers become accustomed to free and expedited shipping, as well as free returns, e-commerce businesses will need to discover new ways to save costs and streamline fulfillment operations.

Flat rate shipping is one option that might help you plan ahead of time for shipping charges and potentially save money.

Consider this your guide if you’re not familiar with flat rate shipping or just want to learn more about how it can help your e-commerce firm.

Flat-rate shipping services can make your eCommerce shipment easier. If a flat rate works well for your company, it can be an excellent option for sending orders. Here’s all you need to know about flat rate shipping and whether it’s ideal for your eCommerce store.

What is Flat Rate Shipping?

Flat rate shipping is a method of delivery in which the cost is determined by the size of the package. As long as you keep the package’s weight under the maximum weight limit, you can ship any package for the same fee. Every shipping company has its own flat-rate shipping plan.

Why is Flat Rate Shipping Important?

Flat rate shipping is ideal when you are sending bulky goods in the same time zone. Pricing becomes more cost-effective for the organization in this manner. It is unquestionably less expensive than regular shipping, which bases its pricing on time zone, pin code, delivery time, product weight, and package dimensions.

Flat rate shipping is a very straightforward and transparent approach to logistics. It’s a perfect choice if you have a large customer base and ship on a daily basis. 

In the case of a smaller number of goods, the flat rate delivery option may involve some additional costs. As a result, always check with your shipping management provider and ensure that you have a steady stream of orders to dispatch.

Here are some additional benefits of flat rate shipping:

Cost-effective

Flat rate shipping saves you money because you don’t have to pay for the actual size of your shipment. This is advantageous for shippers that want to increase their profits. 

No weight disputes

In the past, you had to calculate the width, height, length, and weight of your shipment in order to get a quote and figure out how much it would cost. There is no need to calibrate while using flat rate shipping. Getting the final cost and delivering your own package is straightforward and quick.

Faster delivery

Since there are no individual costs to be calculated for the packages (under the max. weight limit) in the flat rate shipping, it allows for faster delivery of orders.

Difference between Flat Rate and Standard Shipping 

Standard Shipping

Flat rate and regular shipping are two different pricing options for shipping your orders. You can offer your customers a fixed shipping fee for each zone or weight slab, or you can offer them a standard shipping rate that varies within a zone and is determined by various criteria.

Standard shipping means that the delivery charge varies depending on the weight, size, and other relevant dimensions of the box or item.

A flat rate simply indicates that any item can be shipped for the same fee, usually within zones. In most circumstances, the eCommerce site calculates and sets this pricing after consulting with its shipping partner. The flat rate shipping method is calculated based on different shipping zones. For instance, if a company has a fixed shipping rate for zone A, the price could vary for zone B.

Customers will pay a single shipping charge for shipments within the city, regardless of their quantity. As a result, this shipping is suitable if you need to send it to an address within a specific zone near your business. There is a set arrival time for flat rate shipping that cannot change.

Regular shipping prices are calculated based on pin codes and zones, and standard delivery is priced accordingly. The shipping time varies by package and might take anywhere from 5 to 15 days.

Factors Affecting Flat Rate Shipping 

Flat Rate Shipping 

Flat rate shipping is generally advantageous for businesses that send out products regularly. Before we get into the benefits of flat rate shipping, it’s essential to understand how organizations arrive at their flat rates. What are the various elements that go into deciding the flat rate? Even if everything is self-explanatory, it is good to use a shipping calculator to get a better idea of your costs. We now know that a flat rate is best for businesses that deliver within the same time zone and have a set weight slab.

Weight

Shipping businesses have established a standard to simplify matters. If the slab is set at 50 pounds, this is how it will work. Flat rate delivery is available for all boxes or parcels weighing less than that. The majority of shipping companies have placed the limit at 70 pounds. As a result, all packages weighing less than 70 pounds are eligible for flat cost shipping.

Measurements

Most shipping companies have established specifications for each box type: small, medium, and large. This way, even the consignments are constant, making loading, arranging, and unloading easy. They even have containers that are the right size for them. Only specific dimensions or sizes are available for flat rate shipping. As a result, eCommerce companies can bring their packages and store them in those containers. The greatest examples are sets of clothes, books, small metal objects (accessories and gadgets), bedsheets, and other items that can easily fit within their given dimensions boxes.

Local time zone

Time zones can play a part in evaluating whether or not flat rate shipping is suitable for you. The lower the prices, the closer the time zone is to your starting point. The shipment will be more expensive, depending on the time zone. As a result, always ensure that you have many customers in a single time zone closer to you.

Benefits of Flat Rate Shipping 

Transparency

When you choose flat rate shipping, you give your customers a set price, clarifying your selling process. As a result, you gain the customer’s trust, and they develop a better relationship with your company. They also prefer your company over your competitors because there are no additional shipping or handling fees.

No Additional Shipping Costs

You may cut your shipping costs by opting for flat rate shipment between zones with shipping firms like Pickrr. Your consumer will not be charged any additional fees due to this process. As a result, they would be less concerned with shipping and more concerned about purchasing the product. 

Streamlined Management

Your eCommerce site will no longer require a shipping calculator if you choose flat rate shipping. You won’t have to adjust each product’s shipping cost based on its weight and size. This provides you more time to focus on improving your product and other fulfillment processes such as packaging, sourcing, etc.

Minimal Weighing Errors 

Because standard errors due to weight and size measurement are the most common, this is the best result of flat-rate delivery; you don’t have to measure with a flat rate. For example, if your shipments are less than 500g, you don’t need to measure them and ship them directly. This helps you avoid weight conflicts caused by volumetric differences.

Why is Flat Rate Shipping The Need of The Hour for eCommerce Businesses?

Based on how shipping prices are determined, flat rate shipping is an exciting shipping option for a few reasons.

First, the further the distance or shipping zones to which you ship your goods, the more expensive they are, and this only gets worse as the order gets bigger in size.

Furthermore, dimensional weight is a standard price method derived by multiplying a package’s length, breadth, and height. A few freight carriers calculate shipping rates, while a few depend on whichever number is more significant: the package’s actual weight or its estimated dimensional weight.

Flat rate shipping simplifies things a lot and can be an excellent option for some firms, especially small businesses.

What are the Negative Aspects of Flat Rate Shipping?

You’ve squandered a chance to build your brand. You miss out on the opportunity to send your orders in bespoke packaging that promotes your brand if you have to ship in the carrier’s box.

If your products are small and light, you may be overpaying for shipping. In many circumstances, standard delivery providers can send eCommerce orders for cheaper.

Choosing the Best Shipping Method for Your Online Store

You must understand which delivery method is ideal for you as an eCommerce vendor. You must estimate the cost and select the most cost-effective method. Flat shipping is excellent for standard deliveries within short distances in most circumstances. Standard shipping is preferable for remote shipping zones since it is more reliable. You might ask the consumer to reimburse you for a portion of the shipping costs in the form of delivery fees.

Before opting for flat rate shipping, it’s also essential to consider the number of shipments you have. You may be required to pay additional shipping expenses on occasion.

Is it True that Flat Rate Shipping Saves you Money?

The answer to whether flat-rate services will save your company money is that it depends. You may be able to save money by shipping flat rate if:

  • Your merchandise is small.
  • You must charge a flat amount for shipping to your customers.
  • You don’t ship many orders and handle all of your fulfillment. Flat-rate shipping and complimentary carrier packaging may result in net savings for your company.

You’ll have more shipping options once you’ve grown your business large enough to outsource your eCommerce fulfillment. You can save money by shipping your purchases from many fulfillment warehouses that are strategically positioned. Your products will be closer to your customers as a result of this. You may ship cheaply and swiftly utilizing conventional ground services in this manner.

Talk to your 3PL service firm. The fulfillment experts can advise you on the most acceptable shipping options for your business.

Pickrr is an end-to-end SaaS-based logistics solution that streamlines the shipping process from the seller to the customer. It enables you to deliver your products efficiently across India. Powered with AI and ML technology, we bring all your logistical processes to one platform. 

Here’s how Pickrr Advantage flat rate shipping can help your business:

  • Single rate card (zone-wise) with the best rates in the industry
  • Better margins to the seller
  • Reduced billing hassles
  • Smart courier allocation to reduce manual selection and hence daily trouble 
  • Covers 100% RTO losses with better NDR Management 

So what are you waiting for? Sign up with Pickrr to leverage the multiple shipping benefits every day and enjoy hassle-free shipping. 

Conclusion

Flat rate shipping is a straightforward method of transporting goods. There are set rates for all types of boxes and weights, unlike traditional shipping, where shipping costs are based on product kind, dimensions, sizes, and time zone. Flat rate shipping is also simple to comprehend, and it is one of the finest solutions for businesses with frequent order deliveries. Having a large consumer base in the same time zone is also advantageous. Finally, it’s all about choosing the correct delivery partner and keeping track of your orders.

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