For B2C internet start-ups, one of the biggest expenses to consider when formulating a business plan is the cost of delivering products. There are a large number of different couriers offering a range of varying services for companies and individuals. These services will naturally benefit different businesses depending upon the products that are being shipped, the speed of the shipment needed and the areas that are being covered.
Many new start-ups begin their online selling services on eBay’s platform due to the simplicity of use and its openness to new accounts. As well as the fee that needs to be paid to ebay for every successful auction or sale, the seller needs to consider the relevant courier costs. eBay allows sellers to utilise the services of a number of different couriers:
– Royal Mail
Collect+, MyHermes, and Parcelforce all have set delivery charges that are stipulated on the eBay sellers’ page. The other couriers have more fluid services that are dependent upon weighting and distances.
At its peak in the run up to Christmas, Amazon was selling a staggering 426 items per second, making it a huge platform for new and established sellers. Amazon utilises the services of 30 different couriers, operating both within the UK and overseas, giving sellers a huge range of choices when deliberating over a delivery option.
Many of these couriers specialise in one particular area of deliveries such as the country specific Post NL. New start-ups using Amazon may be best offering a number of these options to their customers, allowing them to choose the service most relevant to their needs.
Compare and Contrast
Even negligible differences in prices could soon build up and be a significant sum of money. This makes it more important to fully consider all of the available options to determine which is truly the most beneficial to your and your customers.
Rapid Parcel offer a service wherein both personal and commercial parties can determine the most cost-effective courier service/s to use. When utilising Rapid Parcel as a business customer, it may be preferable to consider all of the delivery options that will be habitually used. One courier may represent the best available price for your heaviest product but not for the lightest. Be prepared to be fluid with the courier services that you employ.
If your product does not make it to your customer or it arrives late due to a fault on part of the courier, the customer will likely still place the blame at your feet. An unreliable courier could serve to negatively impact upon your company’s reputation and may reduce the chance that customers will return to your online shop. Read reviews by other businesses to determine whether a courier service is trustworthy and reliable. Additionally, if you are receiving delivery complaints which are the fault of the courier you have employed, it may be preferable to seek an alternative.