Survey Results

It's Shaping Out That Shipping's Up

Readers told us that, indeed, their shipping costs are high and rising steadily. Despite that fact, they’re still going the extra mile for customers, often absorbing the costs of special orders and even hand delivering to their local customers. To learn more about how they handle shipping, read on.

What carriers do you use for inbound shipping?
UPS 100%
FedEx 77%
USPS 69%
Trucking companies 46%
DHL 31%
Other 16%
One respondent noted that the supplier determines the inbound shipper.

How do you send shipments to your customers?
USPS 85%
UPS 62%
FedEx 54%
Drop-ship 38%
Other 31%
A Canadian retailer identified the Canada Post and Greyhound bus as “Other” methods of shipping.

How did your shipping costs for 2007 compare with 2006?
Spent more on shipping in 2007 92%
Don’t know 8%

If a customer wants a product you don’t have in stock, will you special order it?
Yes 100%

Do you pass the special-order freight cost on to your customer?
No 69%
Yes 31%

How do you normally charge for shipping?
Combination 36%
Percentage of order 27%
Rate banding
(set fees for particular order amounts) 18%
Other 18%
“Other” responses included actual cost of shipping.

Do you deliver products to local customers?
Yes…75%
No…25%

Do you charge for delivery?
No…69%
Yes…31%
Many respondents indicated they offer free local hand delivery if the purchase exceeds a minimum amount.

Readers also said:

“For retail sales, we charge for shipping. For sales to accounts, we have free delivery if the sale meets a certain minimum. It does not apply to all products, for example, we will still charge shipping for furniture.”

“Special orders are becoming increasingly more difficult to manage financially. I don’t currently pass on the special-order freight costs on to my customers, but that may change.”

“I estimate how much to add on to cover the shipping costs. I base my estimates on where it’s going, how big it is and how much it weighs.”

“I am basically a mail order business based on the Internet. I process my own credit card orders by hand, and if they have been entered in my shopping cart, I often lower postage to match my costs if postage was overestimated. I normally ship Media Mail to people who aren’t in a hurry to receive their orders, but for those who are, I use Priority Mail, or, if less expensive, UPS Ground, especially if books are going to my own state or another nearby zone. I save money on out-going shipping by using the Endicia program. I find the cost of this saves me a lot of time standing in line at the post office, since all I have to do is leave the post-paid labeled packages at the counter. I also get discounted rates on insurance and Priority Mail.”

“Shipping is up 12 percent from last year.”

“Costs are increasing daily on shipping. It seems like everyone is passing on rising shipping costs. We have been trying to hold steady, but we’re exploring raising our fees.”