Small Business Shipping Guide: Getting Started Right

Starting to ship products for your small business can feel overwhelming. With the right strategies, small businesses can offer competitive shipping without breaking the bank. This guide covers everything you need to know to ship efficiently from day one.

Setting Up Your Shipping Operation

Essentials to Get Started

Minimum requirements:

Shipping account(s) with carriers
Scale (accurate to 0.1 oz for small items)
Measuring tape or dimension tool
Printer (thermal recommended)
Packaging supplies
Workspace for packing

Optional but helpful:

Shipping software
Label printer
Packaging table
Inventory system
Barcode scanner

Creating Carrier Accounts

USPS:

Free to create account
No minimum volume
Online postage through Click-N-Ship or partners
Commercial pricing through shipping software

UPS:

Create account at ups.com
No minimum requirements
Volume discounts available
Daily pickup options

FedEx:

Create account at fedex.com
Similar to UPS setup
Ground and Express options
Business-friendly features

Workspace Setup

Efficient packing station:

Sturdy table at comfortable height
Supplies within arm's reach
Good lighting
Scale on table surface
Printer nearby
Organized box storage

Choosing the Right Carriers

Carrier Comparison for Small Business

USPS advantages:

Best rates for lightweight packages
Free Saturday delivery
Free pickup available
No fuel surcharges
Flat Rate options
Delivers to PO Boxes

UPS advantages:

Reliable for heavier packages
Strong business services
Good tracking
Pickup scheduling
Packaging supplies available

FedEx advantages:

Fast Express options
Ground Economy (SmartPost replacement)
Business-focused services
Good for B2B shipping

Regional carriers:

Often cheaper for local delivery
Good service in coverage areas
Worth exploring as you grow

When to Use Each Carrier

USPS:

Under 1 lb packages
First-Class packages
Priority Mail Flat Rate fits
Media Mail (books, DVDs)
PO Box delivery needed

UPS/FedEx Ground:

Heavier packages (10+ lbs)
Large dimensional items
Business delivery
Need faster ground transit

Express services:

Time-critical shipments
Customer-requested speed
High-value perishables

Packaging on a Budget

Essential Packaging Supplies

Boxes:

3-4 common sizes to start
Match to your product sizes
New boxes for fragile items
Recycled acceptable for durable goods

Mailers:

Poly mailers for soft goods
Padded mailers for small items
Rigid mailers for flat items
Tyvek for durability

Void fill and protection:

Kraft paper (cost-effective)
Air pillows
Bubble wrap for fragile
Packing peanuts (if needed)

Saving on Packaging Costs

Cost reduction strategies:

Buy in bulk for savings
Use USPS free Priority Mail supplies
Right-size packaging
Negotiate with suppliers
Avoid over-packaging

Free supplies:

USPS Priority Mail boxes and envelopes
USPS Flat Rate supplies
Carrier-branded packaging
Order online for free delivery

Professional Presentation on Budget

Simple branding:

Branded stickers or stamps
Printed tissue paper
Thank you cards
Consistent packaging
Neat, professional packing

Shipping Cost Strategies

Understanding Pricing

Factors affecting cost:

Package weight
Package dimensions (DIM weight)
Shipping distance (zones)
Service level
Special services (insurance, signature)

DIM weight explained:

(L x W x H) / DIM factor
Compare to actual weight
Carrier charges higher
Right-sizing saves money

Cost Reduction Tips

Quick wins:

Use lightest appropriate packaging
Right-size boxes to contents
Compare carriers for each shipment
Use Commercial pricing (not retail)
Ship ground when possible

Volume strategies:

Consolidate shipments
Use shipping software for rate shopping
Consider regional carriers
Negotiate as volume grows

Free Shipping Strategy

Should you offer free shipping?:

Customers expect it
Increases conversion rates
Can be built into product price
Consider minimum threshold

Implementation options:

Free shipping over $X amount
Free standard shipping (paid upgrades)
Free shipping on select items
Flat rate shipping as alternative

Shipping Software Options

Why Use Shipping Software

Benefits:

Rate comparison across carriers
Discounted commercial rates
Batch label printing
Order integration
Tracking management
Time savings

Popular Options for Small Business

Entry-level:

Pirate Ship (free, USPS/UPS)
ShippingEasy (integrations)
Shippo (pay-as-you-go)
EasyPost (API-based)

Full-featured:

ShipStation (popular choice)
Stamps.com
Ordoro (inventory included)
Seller tools from marketplaces

Key features to look for:

Platforms you sell on
Carriers you use
Batch processing
Automation rules
Price vs. features

Getting Started with Software

Setup process:

Connect selling channels

Add carrier accounts

Configure shipping presets

Test with sample order

Train on workflow

Managing Customer Expectations

Communication Best Practices

Keep customers informed:

Clear shipping policy on website
Processing time disclosure
Estimated delivery dates
Tracking information
Delay notifications

What to include in policy:

Processing time (1-2 business days typical)
Carrier options available
Delivery timeframes by service
International shipping (if offered)
Return shipping info

Handling Shipping Issues

Common problems:

Delayed packages
Lost packages
Damaged items
Wrong address
Customer not home

Resolution approach:

Respond quickly
Take responsibility
Offer solutions
Follow up
Learn from issues

Competing with Large Retailers

The Amazon Effect

Customer expectations:

Fast (often 2-day) delivery
Free shipping
Easy tracking
Easy returns
Low prices

How small businesses compete:

Can't match on speed/cost alone
Focus on experience and quality
Personal touch matters
Niche products have loyal buyers

Small Business Advantages

What you offer that big retailers don't:

Personal customer service
Unique products
Handmade or custom items
Local/community connection
Flexibility and responsiveness
Quality over quantity focus

Value-Add Strategies

Differentiate through:

Beautiful packaging
Handwritten notes
Samples or gifts
Exceptional service
Easy personalization
Loyalty programs

Scaling Your Shipping

Signs You're Ready to Scale

Growth indicators:

Consistently shipping 50+ packages/week
Spending too much time on shipping
Need more space
Customer volume increasing
Current process causing errors

Scaling Options

In-house improvements:

Upgrade to thermal printer
Better shipping software
Organized workspace
Batch processing
Standard operating procedures

Outsourcing options:

Fulfillment centers (3PL)
Amazon FBA
ShipBob, ShipMonk, etc.
When to consider: 200+ orders/month typically

Building Processes

Create systems for:

Order processing flow
Packaging standards
Quality checks
Inventory management
Returns handling

Common Mistakes to Avoid

Pricing Mistakes

Don't:

Underestimate shipping costs
Ignore DIM weight
Forget fuel surcharges
Skip insurance on valuable items
Eat unexpected costs

Operations Mistakes

Avoid:

Inconsistent packaging
Skipping order verification
Poor inventory tracking
No backup carrier
Ignoring peak season prep

Customer Service Mistakes

Prevent:

Slow response to issues
Blaming carriers for everything
Not offering solutions
Ignoring customer feedback
Over-promising delivery times

Resources for Small Business Shippers

Educational Resources

Learn from:

Carrier small business programs
E-commerce platform guides
Small business communities
Industry blogs and podcasts

Tools and Calculators

Helpful tools:

Rate calculators
Zone charts
DIM weight calculators
Profit margin calculators
Shipping cost analyzers

Support Networks

Connect with:

Local small business groups
Online seller communities
Platform-specific forums
Industry associations

Monthly Shipping Checklist

Regular Tasks

Weekly:

[ ] Review shipping costs vs. charges
[ ] Check supplies inventory
[ ] Monitor carrier performance
[ ] Follow up on issues

Monthly:

[ ] Analyze shipping spend
[ ] Review carrier rates
[ ] Reorder supplies
[ ] Update shipping policies if needed
[ ] Check software for updates

Quarterly:

[ ] Evaluate carrier relationships
[ ] Review packaging efficiency
[ ] Assess software needs
[ ] Plan for upcoming seasons

Key Takeaways

Start simple: Basic setup, grow as needed

Use the right carrier: Match carrier to package type

Right-size packaging: Save money, protect products

Leverage software: Even free options help efficiency

Communicate clearly: Set and meet expectations

Compete on experience: You can't out-Amazon Amazon

Build systems: Consistency creates efficiency

Learn continuously: Shipping evolves, keep improving

Small business shipping is about efficiency, customer experience, and smart cost management. Start with the basics, build good habits, and scale your operations as your business grows. Every successful large business started shipping one package at a time.