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yadonm

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How do you folks handle shipping costs? Do you charge a handling fee? I'm just starting out with my business and decided to go with a flat rate of $10.00 for shipping but I can see that I will go broke soon if I don't charge more. Currently I'm using USPS flat rate boxes but because I offer 2fers or 3 fers people are generally ordering 2 lotions and 3 soaps which won't fit in a small flat rate box. Do any of you use UPS or FEDEX? I hate to raise my prices so soon but perhaps it's best to bite the bullet sooner than later. What are you all doing regarding this matter?
 
I would pass the costs on to your customers - plus a little bit for the time. It is usually called "postage and packing" because it includes the work to pack it for shipping, plus the shipping.

If that would be very expensive, have you considered looking at cheaper options for shipping, including getting a business customer set up?
 
You can also check into regional rate boxes. They can run less. I do small flat rate padded envelopes for small order and then go up from there. You can set your shipping up by dollar amounts too. That way if you need a larger box even if you stick with flat rate you may be okay. Another option would be free shipping with 50.00 order or something along those lines.
 
I've changed my shipping a few times. Right now I am doing $6.95 flat rate for anything. I use USPS flat rate shipping and cover the costs over $6.95. People seem happy with it, I will probably keep it this price for a while. I also offer free shipping anyone spending $99+, which doesn't happen too often. I was thinking about increasing the flat fee to $9.95 but decreasing the free shipping point down to 50-75. It's difficult to figure out the right pricing IMO.

At first I had the price of shipping exactly the price of shipping. I have since increased the cost of my items to the point where I can offer better shipping deals. I have also considered doing something similar to samirish -- keep my flat rate but offer free shipping above $50. I love free shipping when I see it, I think others do as well. It would be nice to just offer "free shipping any size order." That could be mighty costly though for tiny orders.

If you are going to increase your prices I'd do it as early on as you can.
 
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I ship Priority Mail Flat Rate or Regional Flat Rate, and ship at cost..I don't charge the customer more than I need to pay to ship it. No weighing or calculating needed up to 70 lbs. Flat Rate offers one rate to any state. International is more of course.
 
I charge shipping back to my customer and I do it by the dollar amount. We don't have flat-rate shipping like you guys so it gets expensive. Over $50 I also have free shipping.
 
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