Since 2020, a great shift has been detected for the e-commerce and digital sectors. With a new expanding market having different competitors, some of these businesses are struggling to create competitive advantages when it comes to their shipping and delivery options. The desired outcome is to find the balance between speed and cost as most customers expect cheap and fast delivery. Thus, several e-commerce managers have proceeded with flat rate shipping as a more profitable and efficient option for their business. But is it a suitable option for you?

What is Flat Rate Shipping?

Flat rate shipping is a delivery method in which there is one rate price determined by the size of the package. Different sizes of packaging are provided with the service to choose from. As long as you respect the maximum determined weight of the chosen type of box, you can ship any weight for the same fee. It also eliminates different other nuances of the normal shipping options such as the number of products inside the box or dimensional weight or in many cases the distance of shipping.

How does flat rate shipping work?

This method of shipping can be divided into 3 basic steps:

1- Choose the desired flat rate shipping option depending on the size of the shipping box.

2- Pack your products in the provided boxes. No need to calculate the total weight or number of products.

3- Ship your products.

How can Flat Rate Shipping be Beneficial for your Business?

The most appealing and manifested benefit of flat rate shipping is cost reduction. Unlike other shipping options, weight or distance doesn’t matter. You can ship different quantities or types of your goods to multiple locations at the same price. In most cases, this helps to make the process more affordable and thus eliminate extra expenses.

Moreover, having one shipping rate is, without a doubt, a very convenient method of work. Choosing it as an option will simplify the shipping process and will enable businesses to forgo some details like insurance as it is included in the service. The fact that your shipping costs can be predicted also helps with the financial budget preparation and leave almost no risks for surprising extra fees or calculation errors.

Additionally, this service can help increase customer satisfaction and sales. By being able to charge a fixed and low shipping rate for a whole cart, customers will eventually be encouraged to buy more.

When Can flat rate shipping be an opportunity for your business?

Flat rate shipping is definitely the “to go” option but some details must be taken into consideration before. The impact of such service depends on the scale and type of your business, the weight, and size of your products, or even shipping offered distances.

Flat rate shipping is mostly advised for businesses that are fulfilling orders in-house. It is most convenient when having relatively small and heavy items with different shipping zones. Sometimes, the annual number of orders also should be taken into consideration.

When such a service doesn’t work for your business?

Before adopting this service, you must keep in mind some important details.

Even though flat rate shipping does not take into consideration weight, if you have relatively large products, this option isn’t for you. Large products need large packaging and thus increase the shipping rate even with a small weight. The same is for too-light products as an average shipping option can be more suited and less expensive.

When you deliver in one small geographic zone, this service can sometimes cause extra costs in comparison to regular services.

If you consider outsourcing your fulfillment, this service may not be your best option and alternatives must be looked upon.

What are the different options for this service?

As e-commerce marketing is expanding, different shipping companies offer flat rate shipping options. Each one tries to provide more suitable options and attract more customers. As they may all provide weight-free rates, they can present different services regarding other details.

Of course, the prices of the packages are not the same with also different dimensions and maximum weights. Each provider tries to present the best offer while combining different options of size and price.

Moreover, the delivery time and speed options are varied. Some options can be considered not fast enough especially with relatively low prices.

Distance is generally not accounted for, however, some may take it into consideration especially with overseas deliveries.

Insurance and tracking are included in such service for the benefit of all parties but the quality or important details are a noticeable difference between providers.

The options of such a service are absolutely related to the chosen provider and thus e-commerce managers need to take their time comparing them and choosing the most suitable one for their business.

Flat Rate Shipping Debunked

A flat rate shipping service can be a game-changer for businesses by reducing shipping costs if the products are relatively heavy and small. This service can make business processes easier and can be an asset to generate more customer satisfaction. So what are you waiting for? If your business meets these requirements, study your best option, do the necessary comparison and opt for this service.