Posts Tagged ‘shipping invoice’

What Shipping Rate to use for Single Packages?

Thursday, September 3rd, 2009

Previously we established that it’s best to include total package weight when determining the shipping rate for single packages, but small online retailers also want to know if they should build shipping rates specific to each package weight or if they should use one rate for a range of weights such as 0-5 pounds $10.00?  And what if weight doesn’t vary much or amount to much as is the case for some clothing?

UPS recommends that the answer goes back to the general principle that simpler is better and a range is usually simpler than specific weight rates. 

There’s risk here however.  Risk that your shipping cost may be less than the actual and you’ll end up eating cost or that your shipping cost is way too high and so you may lose some customers who see your shipping cost as too high given what they think their product weight is.  The greater the range that you build the greater the risk will be.  If you do choose to go with a range try to keep your shipping rate at the midpoint of the range.  On a 0-5 pound range, go with a 3 pound rate.  You’ll lose money on 4 and 5 pound orders but make money on 1 and 2 pound orders.  Over time you may observe that your orders are skewing towards the higher or lower ends of the range and you can adjust your rate accordingly.  Keep in mind also that in calculating your average rate you’ll need to take into account not only the average weight but also the average zone. 

You can take this a step further if you’re selling a very narrow variety of products or products that don’t vary much in weight such as CDs or lingerie.  If this is the case then you should consider a very simple flat rate for all shipping.  Industry experts agree that this far more appealing to consumers than providing product specific rates.  It also enables you to communicate shipping costs immediately to shoppers on your home page.  If you’ve got a competitive flat rate you’re going to have significantly less shopping cart abandonment than if you don’t.

UPS: Easy Reconciliation for Transportation Invoices?

Thursday, July 30th, 2009

Do you want to avoid the hassle of reconciling transportation invoices each month?

As your online reteil business grows there are several ways UPS can help you view, manage, and pay invoices.  With the UPS Billing Center, PDF Invoice, and UPS Billing Data, you have your choice of viewing your invoices online, viewing and downloading a PDF image of your invoice, or downloading a raw data file For customers whose bill analysis and reconciliation is a quick scan of their invoice, they can use the UPS Billing Center.  The Billing Center provides access to invoices online, and lets you download a pdf copy of the invoice, which is an exact replica of the paper invoice.  Once you have reviewed the invoice, the Billing Center allows you to quickly pay your bill electronically.  For customers that have more rigorous and more time intensive analysis and reconciliation processes, UPS Billing Data is extremely powerful in helping customers reduce the hassle associated with reconciling UPS bills.  UPS can deliver your invoice information in a raw data file, available in a CSV, XML, or EDI format, that can be integrated into other systems to help quickly analyze and reconcile UPS bills.  We also provide a piece of software, called the UPS Billing Analysis Tool, which can be used with the CSV file to create over 30 reports to help customers analyze their data.

 What this means to customers is that UPS Billing Data can help streamline financial analysis related to UPS transportation charges (for both small package and LTL) to the point where there is very little manual involvement.  If you’d like to read the story of a customer who significantly reduced their time reconciling and analyzing UPS bills, or see a demo on our entire electronic billing portfolio, you can visit www.whiteboard.ups.com and go to the billing solutions room.