What is Shipping?

ShippingWhat does shipping mean?

The physical moving of good from one point to another, such as the moving of merchandise from the warehouse to the customer. The shipping process follows the manufacture and the packing of goods and will be controlled by a shipping or logistics company.

When starting out in eCommerce business you may like to cut costs by handling your shipping yourself; however, as your business venture grows it will no longer be viable to handle the shipping of your goods yourself. In this instance, you will employ a shipping and logistics company.

Shipping can take several forms depending on the distance covered and the speed of delivery necessary. The most cost effective type of shipping is ground shipping, although it is also the slowest form. Basic discounted ground shipping could take up to 10 days or longer at peak holiday shipping times. For quick deliveries air freight would be used, however this is also more expensive. In the case of international shipments freight can be sent via ocean shipping, and while this is very cost effective, it is also extremely slow, taking up to 6 weeks or longer in some cases. While air freight gets around this, international air freight can also be very expensive.

Shipping costs also tend to decline with larger volumes. While a single package may cost $5 to ship, you could see a massive discount if you were shipping 100 packages. Companies like Amazon can provide free shipping to select customers because of their massive shipping volumes and the discounts they enjoy. Ecommerce retailers always need to consider the costs of shipping and how these will be incorporated into pricing, or passed along to customers.

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