Navigating E-commerce Shipping: Is My Current Approach with Royal Mail Efficient?
Running a small Shopify store, I’ve found success in consistently shipping around 50 orders each day. To streamline this process, I currently use Royal Mail’s Tracked 48 service, which allows me to send items in “Large Letter” envelopes at a cost of £2.70 per order. As we’re not yet VAT registered, this method fits our current needs and budget, although I anticipate needing to register in the coming months.
Previously, I experimented with 1st and 2nd class shipping options. Unfortunately, these proved unreliable, with some packages taking over two weeks to arrive. In contrast, the Tracked 48 service offers an average delivery time of four days, providing both reliability and transparency for our customers.
However, I’m questioning whether there are more efficient methods available. Should transitioning to a Royal Mail Business account or using a franking machine be on my radar?
The convenience of Click & Drop cannot be understated. It allows me to print labels from home and simply drop off packages at the post box, eliminating the need to wait for collections or queue at the post office.
As this is my first venture into managing an order volume of this scale, I’d greatly appreciate any guidance on optimizing this aspect of my business. Your expertise and suggestions would be invaluable in helping me streamline our shipping process further.
2 Comments
It’s great that you’re reaching out for advice as you scale your operations. Shipping 50 orders a day is a significant milestone, and ensuring an efficient and cost-effective shipping process is crucial for both your business and customer satisfaction. Let’s break down a few aspects of your current approach and explore potential alternatives.
Current Shipping Method
Using Royal Mail’s Click & Drop with Tracked 48 service is a solid choice, especially since you’ve experienced issues with delivery times using 1st or 2nd class in the past. Tracked services generally offer more security and transparency for both you and your customers, which can enhance customer trust and reduce inquiries and complaints regarding delivery times.
Cost Considerations
At £2.70 per order, Tracked 48 appears to be a reasonable cost, especially given the reliability it offers. However, as you scale, even small inefficiencies can add up. Since you’re not currently VAT registered but will be soon, shipping costs might change. Becoming VAT registered means you’ll be able to reclaim the VAT on business expenses, but you’ll also need to consider how VAT impacts your pricing structure overall.
Royal Mail Business Account
Opening a Royal Mail Business Account could potentially offer you further discounts and flexibility as your order volume increases. Business accounts typically provide better rates than standard consumer tariffs after a certain volume threshold, which you’ve now surpassed. They might also offer integrations with platforms like Shopify, potentially simplifying some aspects of your workflow.
Franking Machine
While you mentioned the convenience of using Click & Drop and avoiding the post office, a franking machine might still be worth considering. Franking can offer further discounts and is ideal if you anticipate stable or increasing shipping volumes. The downside is the initial investment and maintenance of the machine, but the savings could offset this if you plan to expand further.
Time and Efficiency
Continuing with a method that allows you to print labels at home and drop off packages without queueing at a post office is clearly beneficial. Time is an invaluable resource when running a small business. Evaluating services like Royal Mail Collections might be worth considering if you find that dropping off orders is becoming cumbersome. They offer scheduled pickups, though this would naturally come with a fee.
Additional Advice
Track Your Metrics: Keep track of your shipping costs and delivery times. This data will be crucial for making informed decisions as you continue to grow.
Customer Feedback: Keep gathering feedback from your customers about shipping times and services
It’s great to see you finding success with your Shopify store and consistently shipping 50 orders daily! Your choice of Royal Mail’s Tracked 48 service seems to be a solid fit for your current needs, especially in terms of reliability and customer satisfaction.
As you’re thinking about optimizing your shipping process, here are a few suggestions that might be worth considering:
1. **Royal Mail Business Account**: Transitioning to a Royal Mail Business account could offer you discounts on shipping rates as your package volume increases. This could ease costs as you grow and possibly provide you with access to additional services that might streamline your operations even further.
2. **Explore Alternative Carriers**: While Royal Mail works well for you now, it may be worth comparing rates and services from other carriers, especially if your shipping volume continues to increase. Companies like DHL, Hermes, or DPD could potentially provide competitive rates and faster services, especially for bulk shipments.
3. **Review Your Shipping Strategy**: As you anticipate VAT registration, consider whether you should start exploring international shipping options if it aligns with your business goals. Offering international shipping can open up new markets and customers, even if it’s through a platform that specializes in global shipping.
4. **Incorporate Shipping Software**: Tools like ShipStation or Easyship can integrate with your store and help manage different carriers more effectively. They also allow for batch label printing, which could further streamline your process.
5. **Evaluate Packaging Solutions**: Ensuring your packaging is