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Whether your business is shipping its first package or millionth, understanding carrier guidelines and knowing the best options available is crucial. Incorrect shipping dimensions can lead to costly adjustments and order delays. Additionally, aligning with customer expectations around shipping communications and shipping options can boost sales and customer satisfaction.
Here are some factors that impact your shipping costs and how to find affordable small business shipping while considering sustainability and security.
Shipping factors to consider
Measuring and weighing your packages accurately is one of the more important steps in the shipping process. If you enter incorrect dimensions, it can lead to costly carrier adjustment fees and shipping delays.
It’s also important to know the difference between the different delivery timeframes for each carrier service, i.e. when a package will be delivered. That enables you to provide accurate delivery windows, keeping customers happy in the long run.
Shipment dimensions
The length of your package is the longest side of your package, just like when measuring other items—the same goes for your shipment’s width and height. The biggest difference comes with the addition of your package’s girth.
Girth is calculated through the following equation: (2 x width) + (2 x height). You may not need the girth for every package you ship (it’s mostly required for large shipments), but some shipping carriers require them. For example, for a 10 inch wide and 8 inch high package, its girth would be 36”.
Girth = (2 x width) + (2 x height)
36 = (2 x 10) + (2 x 8)
DIM weight vs. actual weight
Your package will be charged for one of two weights: actual weight or dimensional (DIM) weight. Actual weight is the number you see on the scale when weighing your package. DIM weight measures the amount of space your package occupies. Billable weight refers to which weight your shipping charge is based on.
To find the billable weight of your package:
Measure the length, width, and height of your package, rounded to the nearest whole number. So 12.7 inches rounds up to 13, but 5.2 rounds down to 5 inches.
Multiply the length, width, and height together to find your shipment’s volume.
If your package volume is under 1,728 cubic inches (1 cubic foot), you’ll be charged based on its actual weight.
If your package is over 1,728 cubic inches, divide it by a carrier-specific number to find its DIM weight.
Compare your DIM to your package’s actual weight. You’re charged based on the larger of the two.
For USPS shipments, you’ll divide the volume by 166. For UPS and FedEx shipments, you’ll divide the volume by 139.
Delivery time
A ShipStation study shows that 34% of customers expect their orders to arrive within 3-4 days, while 28% of customers expect orders to arrive within 2 days. The bottom line is that customers want their packages as soon as possible. This is where same-day shipping and overnight shipping options come into play.
Same-day shipping means your business ships a package on the same day it was ordered, but doesn’t mean that the package will arrive on the same day it was ordered. Overnight shipping means a shipment will arrive the day after it was ordered.
If a customer is looking for a last-minute gift or needs an item to arrive in a hurry, offering overnight shipping and same-day shipping options can make your business stand out from the competition.
Delivery distance
Most carriers break up the United States into shipping regions or zones. Zones consist of a range of miles between a shipment’s origin point and destination. The distance a package is traveling will impact its shipping cost. The further a package travels, the higher the shipping cost will be. We’ve included the USPS zones below, and you can use the USPS Domestic Zone Chart to help determine zones as well.
Zone 1: Non-local destinations within 50 miles
Zone 2: Destinations within 51-150 mile radius
Zone 3: Destinations within 151-300 mile radius
Zone 4: Destinations within 301-600 mile radius
Zone 5: Destinations within 601-1,000 mile radius
Zone 6: Destinations within 1,001-1,400 mile radius
Zone 7: Destinations within 1,401-1,800 mile radius
Zone 8: Destinations within 1,801 mile radius or farther
Zone 9: Destinations within Freely Associated States/Zip codes assigned for exceptional network circumstances*
You can use the USPS Domestic Zone Chart to help determine zones in advance.
*The three-digit zip codes 962-969 aren’t included.
Learn how to create a shipping policy
How to find affordable shipping options
Once you’ve packaged and prepared your orders to be shipped, it’s time for the next big decision in the shipping process: choosing a carrier and carrier service. Your selected service not only needs to align with customer expectations but needs to be cost-effective for your business. In the U.S. your main options are most likely USPS, UPS, and FedEx, which each provide different offerings to choose from.
USPS
USPS offers small businesses a variety of carrier service options, including one of their most commonly used services, Priority Mail®. Features of Priority Mail® include:
Free USPS tracking
1-3 business day delivery window
$100 of included insurance for eligible shipments
USPS offers free supplies like boxes that can be shipped directly to your home or business. The supplies you need might not always be available at your local post office, so use the locator tool from USPS to find all of the locations near you. Squarespace users with the ShipStation extension can save up to 84% off USPS retail rates.
UPS
UPS also offers merchants several carrier services, including UPS® Ground. UPS Ground gives your business:
Free UPS® tracking
Day-definite delivery in 1-5 days
Free tracking information for your shipment, 24/7
UPS also offers online supply ordering, and you’ll need to log in or create a new username to start your order. Account signup is free, and once your account is created, you’ll be able to browse available supplies by supply type. Supplies you can order include:
Shipping labels, forms, and stickers
Boxes and packaging
Pouches
Express envelopes
If you’d rather get supplies the old-fashioned way, you can use The UPS Store® locator to find the nearest location for supplies and shipping assistance. With the ShipStation extension, you can use UPS on ShipStation to save up to 82%* off daily rates (international services), up to 73% for UPS 2nd Day Air® and Next Day Air® services, and up to 78% off UPS® Ground shipments.
*Discounts off UPS daily rates. Rates are limited to shipping from the U.S. only. Rates and any applicable discounts are subject to change at any time without notice.
FedEx
As with the other carriers, FedEx gives merchants a selection of services to choose from, including FedEx® Ground. The features of FedEx® Ground include:
Free FedEx tracking
3-7 day delivery window for Hawaii and Alaska
1-5 day delivery window for the contiguous U.S. states
To order free supplies from FedEx, you’ll need to create a free account and add a credit card on file. FedEx also has FedEx Office and FedEx Authorized ShipCenters locations where you can purchase supplies in person and get help packing and shipping your items.
Learn how to calculate and set your shipping fees
Incorporate sustainable shipping practices
According to the 5 Gyres Institute, we only recycle 10% of the 300 million tons of plastic that the United States produces each year. A ShipStation study found 66% of customers stated that they would consider sustainable shipping options if offered, up 3% from 2022.
You can practice sustainability by using green packaging whenever available and asking customers to reuse boxes for returns. Most carriers also offer package pickup options, so you don’t have to drive to and from locations multiple times a week to drop off packages.
It’s also crucial to keep track of your inventory to avoid overstocking and wasting boxes. Consider adding a recycling bin to your work and/or home office as a reminder to recycle instead of throwing boxes in the garbage.
Should you insure your packages?
Many carrier services offer insurance coverage or declared value options. However, for higher-priced items, we recommend opting for additional insurance from carriers or a third-party provider to give you and your customers both peace of mind. And, customers are making their opinions known:
15% of customers stated they were less likely to purchase from a business that didn’t offer insurance.
45% of customers stated they were less likely to purchase from a business again if their package was lost in transit.
56% of customers stated that they were less likely to purchase from a business again if their package was damaged or poorly packaged.
With the risk of a package being lost in transit, or unfortunately, the risk of a package being stolen by porch pirates, shipping insurance is becoming less of an option and more of a necessity. Aligning with your customers’ expectations can also lead to an increase in sales.
How to ship specialty items
Shipping specialty items like perishable foods and products that need dry ice, like ice cream, come with their own set of guidelines and regulations. For example, foods that quickly rot or deteriorate are usually a no-go, and it’s important to note that food items are shipped at your own risk.
Tips for shipping perishable items
Prepare packages for multiple hours of transit.
Utilize gel, plastic, and foam cold packs to keep your products cold.
Ship perishable items through overnight and expedited shipping options.
Encourage customers to enable shipping notifications, so they are notified when a perishable order arrives.
Shipping with dry ice
Dry ice comes in handy when shipping frozen foods like ice cream. You can buy dry ice from specialized companies and some convenience and grocery stores.
Two of the most important things to note when handling dry ice are to wear gloves and to avoid tightly sealing your shipments; dry ice can cause burns and can lead to your package bursting open. Additionally, carriers recommend preparing shipments for at least 30-40 hours of transit. We recommend visiting your carrier’s website or reaching out directly for more information on shipping with dry ice.
Learn more about shipping specialty items
Choosing a shipping software
As your business grows, adding shipping software to your tech stack can help you work more efficiently and watch your bottom line.
Squarespace offers an extension in partnership with ShipStation, a fulfillment management platform that streamlines and automates the shipping process. ShipStation merchants also receive discounted shipping rates on carriers and can integrate major selling channels, marketplaces, inventory management systems, ERPs, and more. Thanks to scan-based workflows, import automations, batch shipping, and many other features, you can pull in orders from anywhere you sell and quickly print shipping labels.
Note: This Making It article was created in collaboration with ShipStation and will be most relevant to U.S. readers.