The purpose of flat-rate shipping is to offer businesses a way of standardizing their shipping costs, controlling for the large variations that can occur due to DIM weight, shipping distance, and seasonal peaks. This means that merchants can ship a variety of different items to different locations for the same price, so long as it fits the shipping box and maximum weight prescribed. Some shipping carriers will also charge a flat rate regardless of the end destination.
Flat-rate shipping is also generally exempt from peak season surcharges, making it an affordable option during the holiday season. What is flat-rate shipping?įlat-rate shipping is a method where the cost of e-commerce shipping is determined by the size of the box or envelope, rather than by the dimensional (DIM) weight of the item(s) being shipped. In this post, we’re going to weigh up the pros and cons of flat-rate shipping, how it works, and the different flat-rate shipping services available to your business. So, when is it cheaper for merchants to use flat-rate shipping – and when is it not? While it can save you money, flat-rate shipping methods can also be too standardized to cater to the unique needs of every merchant. But this doesn’t mean that flat-rate shipping is a one-size-fits-all solution for every e-commerce business. This is why it’s essential to have an optimized shipping strategy that provides the right cost savings in the right places.įlat-rate shipping is a popular shipping method for merchants who are looking to simplify their shipping strategy and their fulfillment process.
The higher your shipping costs are, the slimmer your profit margins will be. Shipping is one of the biggest fulfillment costs that you’re going to shoulder as an e-commerce business.
Written by Beth Owens on November 3rd, 2021 E-commerce Omnichannel Retail Technology Transportation
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