A major concern and cost of your business will be shipping your merchandise to the customer and the expense added to the cost of your merchandise. Make sure you always understand the shipping costs when purchasing wholesale goods. Nearly every wholesaler you deal with will have shipping costs and information clearly available. New retailers often forget to think about shipping cost when calculating their margins.

If you are likely to send only individual items or small quantities UPS or a similar shipper is most likely your best bet. However you need not run straight into the arms of the mega shipper. The much-maligned U.S. Postal Service offers a very similar service and costs a little less. It is also a good idea to look at Federal Express and other private shipping companies. In recent years they have brought their pricing inline with UPS and the Poastal Service.

Sending larger quantities can be much more complicated for the small business, particularly if the shipments still amount to less than a truckload. Many trucking companies offer pallet rates that would be far cheaper than a shipper like UPS. There are trucking companies out there that offer good rates on partial loads of varying sizes. Look for trucking companies that advertise “less than truckload” rates. A good example of this is Small Business Transportation, commonly called SBT, but there are many others.

It is also possible to find freight auction sites online. A freight auctionis where a trucking company will advertise an truck headed to a locale that has not yet been filled. They offer customers the chance to bid on filling up that load. You can get absolutely unbelievable rates if you are patient and have nerves of steel. As the date draws nearer the freight company will take just about anything just to fill the truck. However, if you wait to long you can easily miss your chance.

Useful Links…

United Parcel Service (UPS)

United States Postal Service

Small Business Transportation