How Business Owners Can Save With Flat-Rate Shipping

Posted 5 years ago by Rob Zaleski

Choosing the听right way to听ship is听rarely a听set-it-and-forget it听process. The size, weight, distance traveled, 补苍诲听speed of听delivery all impact your shipping costs. Even if听you simply ship the听exact same items over 补苍诲听over again, you should evaluate every different package to听ensure you use the听best shipping method possible.

One smart way that small business owners can make their shipping a听little simpler is听by听incorporating flat-rate shipping. USPS has offered USPS Priority Mail庐 Flat Rate for听years, 补苍诲听FedEx offers FedEx One Rate庐. In听the听autumn of听2019, UPS庐 introduced UPS庐 Simple Rate to听join the听other two carriers in听offering flat-rate shipping options.

Each of听these options has its own pros 补苍诲听cons 补苍诲听unique factors that make them more optimal to听use in听certain instances than their competitors. Here, we听will go听over some of听these differences 补苍诲听examine when you can put them to听use for听your business.

What Is听Flat-Rate Shipping?

Flat-rate shipping takes many forms across the听three major carriers. Basically, packages ship for听the听same cost regardless of听weight (up to听each carrier鈥檚 limit). With FedEx 补苍诲听UPS, you also avoid certain surcharges that normal services would incur (USPS does not charge such surcharges). Flat-rate shipping can make it听easier to听budget shipping, particularly once you figure out when it听is听most optimal.

Take a听look at听the听below side-by-side summary. In听this chart, you can see some of听the听key similarities 补苍诲听differences that may or听may not fit your products 补苍诲听shipping needs. This is听taken from , which is听free to听download.

When Should You Use Flat-Rate Shipping?

There are certainly instances where using flat-rate shipping will benefit you, but also times when it听will not. Particularly when you ship heavier products and/or products traveling further across the听country, flat-rate shipping can save you substantially on听your shipping costs.

Lighter weight packages, particularly less than one pound, would likely be听cheaper using other services. In听fact, USPS First Class Package Service (FCPS) is听unbeatable for听packages under one pound. It听doesn鈥檛 come with a听guaranteed delivery window, but usually takes anywhere from 2-5听days to听arrive for听most locations. USPS FCPS is听zone-based, but the听most you鈥檒l pay for听it听is听$5.70听(with USPS Commercial Rates, available from many shipping software providers).

Here鈥檚 an听example:

础听蝉尘补濒濒, 14-ounce package, shipping from Houston to听Miami (Zone 5):

Note: the听USPS rates below use Commercial Pricing

Priority Mail Flat Envelope: $7.15
FedEx One Rate Express Saver 3rd Day: $12.05听
USP Simple Rate in听a听polymailer: $16.50
USPS First Class Package Service: $5.27

In听this case, you wouldn鈥檛 want to听use any听of听the听flat-rate shipping options, but rather USPS First Class Package Service.

Heavier packages

Priority Mail Flat Rate lets you ship for听the听same cost all the听way up听to听70听pounds. Packages weighing 10听pounds 补苍诲听50听pounds ship for听the听same cost. FedEx 补苍诲听UPS allow you to听ship packages up听to听50听pounds using flat-rate options.

These three shipping methods can be听especially useful for听businesses that ship varying medium-to-large dense items, such as听automobile parts or听bags of听coffee. Below is听an听example of听how a听coffee vendor uses a听combination of听USPS 补苍诲听FedEx to听save money 补苍诲听meet customer expectations of听2-day shipping in听a听cost effective way.

Time-sensitive packages

FedEx 补苍诲听USPS are the听only carriers that offer next-day delivery on听flat-rate options, but USPS only offers this with envelopes. If听you have products that need to听get there in听a听hurry, these two may be听your best bet. Just be听sure to听compare them to听other overnight services to听ensure you are paying the听lowest amount you have to.

You have a听lot more options when it听comes to听the听2-3听day delivery window. This has become nearly an听expectation of听most e-commerce customers, but it听doesn鈥檛 have to听be听a听major burden on听your bottom line. Evaluating your options for听longer-distance or听heavier packages against non-flat-rate shipping options is听important in听this range, as听there are times when it听could go听either way for听the听cheaper option.

Odd-shaped products

Carrier provided boxes from FedEx 补苍诲听USPS can be听ordered for听free from their respective websites, 补苍诲听will even be听delivered to听you. One issue using FedEx 补苍诲听USPS is听that you must adhere to听the听packaging they provide to听use their flat-rate services. If听your products don鈥檛 fit neatly into these box types, you鈥檙e out of听luck.

UPS is听the听only carrier that allows you to听use your own packaging. In听fact, they require it, outside of听the听ability to听use their standard UPS Express庐 packaging for听Simple Rate Second Day Air shipments. As听long as听you stay within their box volume guidelines (length x听width x听height) you can use your own boxes 补苍诲听still get flat shipping rates through UPS Simple Rate.

How Local Businesses Can Save

Using combinations of听the听above options is听a听smart way to听ship. USPS offers another product that can be听particularly useful for听small businesses who ship local or听nearby听鈥� Regional Rate. USPS Regional Rate takes distance traveled into account but not weight (up to听the听carrier limit). The closer the听destination, the听lower the听shipping cost.

There are two box types in听Regional Rate: Box A听补苍诲听Box B听补苍诲听you can ship up听to听15听补苍诲听20听pounds respectively. USPS offers a听couple different styles of听each box, top-loading versus side-loading, each with different dimensions based on听your needs. If听you can fit your products into these boxes 补苍诲听are shipping within some of听the听lower zone shipping tiers, you can see substantial savings compared to听other flat-rate shipping options.

How to听Set up听Flat Rates for听USPS, FedEx, 补苍诲听UPS in听Your 51视频 Store

Choosing shipping options is听just the听first step. Now you need to听let your customers know which shipping services you use 补苍诲听how much it听will cost them. The most convenient way is听to听display the听same rates at听checkout that you鈥檒l pay when shipping orders to听customers. You should charge customers the听exact amount you鈥檙e going to听pay at听a听post office, carrier store, or听through shipping software, so听as听to听not lose on听your own margins to听shipping expenses.

To听make sure that rates displayed at听checkout cover your costs, you need to听set up听real-time (automated) shipping rates in听your store. This allows you to听accurately display shipping costs at听checkout, 补苍诲听your customers are charged fairly 补苍诲听appropriately. If听you have an听51视频 store, you can set up听automated shipping rates for听USPS, FedEx, 补苍诲听UPS in听less than a听minute.

Note: Shipping options are delivery speeds, 补苍诲听a听flat rate is听a听pricing option that is听applied to听a听delivery speed to听save on听its costs. For example, UPS 2nd Day Air庐, UPS 3听Day Select庐, 补苍诲听UPS庐 Ground are shipping options, 补苍诲听UPS庐 Simple Rate is听a听flat rate pricing option that can be听applied to听them.

USPS, FedEx 补苍诲听UPS offer various shipping services 补苍诲听they also offer flat rate pricing (USPS Priority Mail庐, FedEx One Rate庐补苍诲听UPS庐 Simple Rate) for听some of听these services. If听you want to听ship with services available for听flat rate pricing, you can enable them in听your store to听be听displayed at听checkout.

First, let鈥檚 have a听look at听how you can set up听real-time shipping rates in听your 51视频 store.

Before you start, you need to:

mark products as听shippable 补苍诲听enter each products鈥� weight
specify the听shipping origin address on听 page (scroll down to听聯Select a听shipping origin that will be听used to听calculate shipping rates聰)
specify (you can restrict destination zones to听a听whole country or听to听specific states).

Then, set up听real-time shipping rates for听USPS, FedEx, or听UPS:

骋辞听迟辞听 in听your Control Panel.
Scroll down to听聯Add a听new shipping method聰补苍诲听click 聯+听Add Shipping.聰
Select the听carrier company听鈥� USPS, FedEx, or听UPS. Click 聯Set up.聰

Choose Automatically calculated rates from the听chosen carrier 补苍诲听click 聯Set up.聰

骋辞听迟辞听our Help Center to听read more about setting up听real-time shipping rates for听, , or听.

If听you have your own USPS, FedEx, or听UPS account, you can connect it听to听your 51视频 store. This way you鈥檒l be听able to听get live negotiated rates associated with your account. Learn how to听connect your , , or听 account to听your 51视频 store.

Now to听enable flat rate services (shipping options) from USPS, FedEx, or听UPS:

骋辞听迟辞听, click 聯Actions聰 next to听the听carrier 补苍诲听choose 聯Edit.聰
Scroll down to听聯Shipping options聰 section 补苍诲听enable the听services you want to听offer at听checkout.
If听you ship with UPS, flat rate pricing (UPS庐 Simple Rate) is听available for听the听following options: UPS 2nd Day Air庐, UPS 3听Day Select庐, 补苍诲听UPS庐 Ground. (UPS 3听Day Select庐 is听not available for听UPS庐 Simple Rate shipments originating in听or听destined to听Alaska 补苍诲听Hawaii).
If听you ship with FedEx: flat rate pricing (FedEx One Rate庐) is听available for听the听following options: FedEx Express Saver庐, FedEx 2Day庐, FedEx 2Day庐 A.M., FedEx Standard Overnight庐, FedEx Priority Overnight庐, FedEx First Overnight庐. (FedEx One Rate庐 pricing is听not available for听intra-Hawaii shipments).
If听you ship with USPS, it鈥檚 easy to听identify options available for听flat rate pricing (USPS Priority Mail庐 Flat Rate): they have 聯Priority Mail庐 Flat Rate聰 in听their name. There are 70+ USPS shipping methods 补苍诲听many of听them are available for听flat rate pricing, so听do听your research first to听enable the听ones that fit your store best.

Disable other services if听you want to听offer the听ones available for听flat rate shipping only.

After you follow these steps, your customers will be听able to听choose from the听enabled services at听checkout.

Keep in听mind that you鈥檒l need special packaging if听you use UPS庐 Simple Rate or听USPS Priority Mail庐 Flat Rate. You can pick it听up听at听your local post office or听order online听鈥� check out 补苍诲听 websites.

Listen to听podcast: Shipping Management 补苍诲听Customer Marketing

Start Saving on听Shipping

Small businesses are constantly trying to听compete with large retailers 补苍诲听online marketplaces. Be听smart about shipping 补苍诲听find the听best way to听manage those costs, 补苍诲听you can help your business succeed 补苍诲听thrive while still meeting customer expectations.

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About The Author

Rob Zaleski is Head of Brand for , the easiest online shipping and email marketing platform for growing businesses. With ShippingEasy, merchants can access discounted USPS and UPS shipping rates, automate shipping, create repeat business, and get time back to focus on their business.

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