E-commerce

In small businesses, shipping is a crucial concern. In this article, we discuss shipping strategy for small business and how to reduce costs.

Drop Shipping is a popular term nowadays due to the ever-expanding internet era. But is the right eCommerce model for you? Let’s find out!

A well-known phenomenon: when you order something online, you, as a buyer, have to pay for everything, even in case of loss or damage. However, have you ever thought if your seller takes responsibility for the package, including the costs, until it is delivered to you? Is it possible? Well, under Delivery Duty Paid (DDP) Incoterm, it is.  Delivery Duty Paid (DDP) is one of the 11 Incoterms widely used in international shipping. It demands sellers to pay for the order fulfillment and take complete responsibility for the package until it is delivered. But why would any seller opt for it? Let’s dig into it.   All About Delivery Duty Paid  International trade has seen a noticeable growth due to the widespread use of the internet and mobile devices. This has benefitted large corporations along with small and medium businesses as well. However, this growth has increased the potential for disputes due to varying import and export conventions.    The International Chamber of Commerce established the 11 Incoterms to prevent such disputes for a clear understanding of shipping terms and risks and responsibilities associated with all the parties involved. Among 11 Incoterms, we are going to discuss Delivery Duty Paid in this article.  Delivery Duty Paid – What is it? The Delivery Duty Paid (DDP) is a delivery agreement whereby the supplier (seller) is liable for the goods until they are delivered to the buyer. The risk and responsibilities associated with the shipment are of the seller. They need to pay for shipping costs, export and import duties, insurance, and other costs.   DDP is one of the Incoterms (International Commerce Terms) that defines the responsibility of sellers and buyers. This is primarily used in international shipping transactions and helps you explore the market’s potential worldwide.  Moreover, as a seller, it gives you a chance to quote prices higher than the usual market rate and increase your profit margins.  DDP Responsibilities – Buyers and Sellers Though it is clear that the seller takes care of everything, there are few responsibilities that the buyer has to take care of. Let’s have a look at both of their duties:    Buyer’s Responsibilities:    The buyer in DDP has minimal responsibilities. This includes receiving goods, and part of it is the unloading process and its fees.   Know More Seller’s Responsibilities:    Under DDP Incoterms, the seller is obliged to:    – Drawing up sales contracts and related documents    – Fulfilling all import and export requirements    – Paying for all import and export duties and taxes    – Cover the cost of transportation from the warehouse to the final agreed-upon destination    – Take care of all government inspections    – Ensure that the goods arrive at the destination    – Incur all damage or losses, if any occurs  Let’s have an overview of their responsibilities:  Responsibilities  Seller  Buyer  General  Deliver the goods and commercial invoice  Pay the price of the goods as agreed in the contract of sale, after delivery    Delivery  Deliver the goods at the agreed date and time with the preferable shipping method  Take the goods after they are delivered  Risks  Responsible for all of the risks until goods are delivered  Responsible for all of the risks once the seller delivers the goods  Carriage  Make the carrier contract and pay the cost  No obligation  Insurance  No obligation  No obligation  Delivery/transport document  Provide a transport document at own cost  Accept the document  Export/Import Clearance  Responsible for all export clearance expenses along with all the formalities involved Assist with import clearance if required  Checking  Pay for all checking operations like weighting/counting of goods, packaging, etc.  No obligation  Notices  Notify the buyer when goods have been delivered  Notify the seller of the destination and time  DDP Timeline DDP follows a simple timeline where the seller has most of the responsibilities until the buyer receives the product.   Seller picks, packs, and fulfills all the necessary requirements for the goods to be shipped.   Afterward, the seller ships the order with a reliable shipping carrier.   The package is then shipped to the destination via any method of transportation.   The seller is then liable for taxes once the package arrives at the destination.   Once the package arrives, the buyer is now responsible for the actual product and pay the price to the seller on the agreed contract.  Sellers incur the charges in case of loss or damage while buyers pay for unloading fees and everything required after receiving the product.  DDP Fees For sellers, there are various fees associated with DDP. To determine if you will make profits from your sale using DDP, calculate the fees you have to pay. Sellers assume responsibility for all these fees:   Shipping Fees   It can be expensive to ship products via sea or air. Therefore, always know the price beforehand, especially in international shipping.   Import and Export Custom Duties   When shipping internationally, you must know about the import and export custom fees. If you choose a less reliable transportation service that handled your DDP poorly, it is likely to be examined by customs, which causes delays. Hence, choose your shipping partner wisely.   Damage Fees   If any damage occurs to the shipment, the seller has to bear its cost along with the reshipment of the new products.   Demurrage and Storage Costs   Under DDP, the seller absorbs the cost for storage and demurrage in case of delays by delivery drivers, custom authorities, other government agencies, and air/ocean carriers. These are unanticipated costs and can eat into the profits. Hence, it’s better to partner with a reliable logistics partner and know the cost beforehand.  Shipping Insurance   Shipping Insurance is not mandatory. However, some sellers prefer it to lower risks.  When to Use DDP? Due to the disadvantages for sellers discussed above, the ideal time to use DDP is when the supply chain costs and routes are stable and predictable. Therefore, it is better to create a probable shipping quote beforehand and get a customer agreement on it. Moreover, consider using DDP when you have confidence in your logistics company, and they own a successful track record of delivering to other customers internationally under DDP Incoterms.  So, Is DDP Beneficial for Your Business? The answer to this question depends on your product’s costs and customer demands. If using DDP profits you and your customer then, you should opt for it. However, it is better to consider a 3PL for it. There are various benefits that a fulfillment company can offer. Their experience, network, and expertise in the industry can

Boxed Packaged Goods are merchandise packed in a box. The purpose of this packaging is to protect the goods during shipping. It makes shipping more secure and safer for your business. If you are new to the e-commerce world and have no idea about packaging, then you are at the right place. Here is an article with all you need to know about types of packaging so you can deliver perfectly boxed packaged goods to your customers.  Boxed Package Goods Explained – Types of Packaging and Benefits With products of all types being ordered on a large scale and delivered on a daily basis, the packaging industry is booming like never before. According to an article published by Business Wire, in 2019, the value of the global packaging market was $926.43 billion, and it is anticipated to reach $1,652.28 billion by 2027.   The figure clearly represents the growing demand for packaging and boxed packaged goods. Different types of products are packed using different types of packaging material to ensure the safety of goods in storage, transition, and delivery. Continue reading the article to know all about the benefits and types of packaging material.   Benefits of Packaging Different types of packaging help to keep the product safe during shipping as well as storage. Moreover, it also acts as a marketing and sales tool. According to a study, around 72% of American customers say that packaging design is crucial in influencing their purchase decision. Sounds interesting, right? That’s not it. Here are some of the primary benefits of packaging. Physical Protection Good packaging provides physical protection to the goods. It keeps them from damage which can be caused by a wide range of reasons, including vibration, dropping, extreme temperatures, and more. In addition to this, boxed packaged goods stay protected from things like humidity and dust.   Containment  Many items come with different small accessories. For instance, a mobile phone comes with a charger and earphones. Custom packaging offers containment for small accessories and items that come with the products like tablets or mobile phones.   Defense  When products are in transit, they might get lost or damaged if not packed properly. Properly boxed package goods contain packing slips which make it easy to track and identify the product. Moreover, good packaging provides a line of defense to the products.   Easy Handling  If you do not pack the products properly, they might be difficult to handle at the warehouse, during transit, and delivery. Packaging helps warehousing and distribution staff by including elements like handles or different elements which help in easy handling of the goods. Moreover, dunnage added to the boxed packaged goods during packaging provides an extra layer of protection to the products, making them easy to handle and carry.   Premium Touch   Great packaging itself is one of the best marketing tools for your enterprise. Many companies offer packaging with top-notch and premium design and finish. It helps to create a good image of the products as well as the brand. Boxed packaged goods with premium packaging play a crucial role in creating a brand image and attracting new customers.  Types of Packaging and Uses  Packaging provides protection to the goods and plays a vital part in the perceived value of the brand. With a wide range of box and packaging choices available in the market, it has become difficult to choose the most appropriate packaging solutions for different products. Therefore, we have rounded up a list of different packaging options you can pick to improve your product safety and customer experience. Paperboard Boxes  Paperboard boxes are made of wood pulp and can also be made using 100% recycled material. You can easily mold these boxes to make custom shapes. This characteristic makes paperboard boxes ideal for boxed packaged goods.   Paperboards are inexpensive and are affordable packaging choices. That’s why people use them for packing different products ranging from fast food to product display boxes. If you coat paperboard boxes with antistatic chemicals, you can also use them to package electronics safely.   Advantages   Highly affordable  It has a wide range of applications  Best packaging material   Recyclable and you can make it with 100% sustainable material  Easy to mold in different shapes and structures  Disadvantages  Poor rigidity and strength  May not withstand contaminants like moisture and dust  Rigid Boxes  Have you wondered which type of packaging material is used to pack luxury retail items like Rolex or premium gadgets like iPhone? It is actually a rigid box. The most popular use of this packaging material is to pack premium boxed packaged goods to add an excellent touch to the products.   A rigid box is highly durable and made of profoundly condensed paperboard, which is four times thicker as compared to the paperboard. Rigid boxes have a stiff structure and are noticeably heavy and dense.    Moreover, these boxes are highly customizable. You can print them, add a matte lamination, or give them an AQ coating. When it comes to pricing, they are one of the most expensive packaging materials, hence used for premium products.   Advantages  Premium quality  Strong and durable  Best for products of almost any size and shape  Highly customizable  Disadvantages  Expensive  It needs additional packaging to protect it, adding to the overall packaging cost  It is usually non collapsible, which increases the shipping cost  Corrugated Boxes  This is commonly known as cardboard and is popularly used for export cartons and retail packaging. Moreover, you can also use them for storing items. Cardboard is a multi-layered paper, and its corrugated part is present between the outer and inner heavyweight paper. The corrugated paper provides insulation, protection, and strength to the cardboard.   Corrugated boxes are usually made with recycled paper, which makes them sustainable and reasonably inexpensive. You can cut and form cupboards in different shapes according to the shape of the products to deliver perfectly boxed packaged goods to your customers.   Advantages   Sustainable and recyclable  Reasonably inexpensive  Easy to alter in different forms  It does not require machinery  It can be used to pack electronics after antistatic coating  Disadvantages  If not finished, it is susceptible to humidity and moisture  It lacks a premium finish and

Unboxing a package isn’t just an occurrence; it is an experience. YouTube and other social media platforms have made ‘unboxing’ an incredible moment in today’s digital age. Hence, delivering a satisfying experience has become a priority to businesses, no matter big or small. Creative custom packaging is one of the best options to cater to this experience for your customers. Read this blog to know more about custom packaging.  Stand Out With Custom Packaging In today’s crowded market, it’s challenging to create a long-lasting impression on customers. Hence, to stand out, you must provide a unique experience to your audience. You can achieve this with the help of custom packaging. It is a simple way to retain customers and build brand value.    The global personalized packaging market is expected to generate revenue of $35,513.95 million by the end of 2024. This swift expected growth makes today the best time to invest in custom packaging. Continue reading this article to know why and how to create customized packaging for your business.  Reasons to Opt for Custom Packaging Custom Packaging is an underestimated aspect of product branding and marketing. It isn’t just a container for your product; it plays a variety of roles. Here are some reasons for your e-commerce business to start using custom packaging today!  Great first impression   Creating a unique impression is the only key to gain traction in a world full of brand messaging. It is said that don’t judge a book by its cover but, let’s be honest, we all do that. But unfortunately, that goes for evaluating the service of a brand with the first product delivery as well. Hence, custom packaging is a way to save yourself from getting discarded for poor service and experience.  Custom Packaging creates a great first impression and tells your customers that you care about their experience.  Enhanced Retention   When you provide unique packaging to your customers, they are more likely to remember you at the top of mind at the next purchase. Give them a positive unboxing experience and something to remember, and they are more likely to come back.   Make your brand stand out  It is always best to represent your brand with colors and display them everywhere, even on your packaging material. Your packaging is your brand ambassador, representing your brand around. It captures your brand’s personality.   Design it wisely as it defines your brand voice and, ultimately, your customer’s experience and retention. Know More Design wisely When you are designing your customized packaging, keep your customers in mind. Will they like a homemade design or prefer luxury packaging?    Fit it into the box   When you opt for creative packaging, make sure it looks good and is according to the product size. It may take some time to figure out the right combination of size, shape, material, and security of the boxes but don’t miss out on creative packaging.   Be Careful with Fragile Items   Your product packaging makes a huge difference in whether or not your product arrives broken to your customers’ doorsteps. Make effective use of dunnage to add some additional cushioning to the product. However, make sure you are not over-spending on packaging material.   Pack Wisely, Save Happily / Freely  Your customer shouldn’t receive a comb in a larger shipper box layered with million sheets of bubble wrap. That is a waste of material and can increase your logistics and shipping costs. Instead, you can create different packaging options for your various products but make sure the overall packaging looks good and keep the product safe.  Build Value With Custom Packaging When you provide custom packaging to your customers, you show them that you care about their experience. This helps you in value-addition for your brand.    Increased Perceived Value   Packaging impacts your overall brand perception. People tend to remember visuals more, and hence, when you serve them with attractive and efficient packaging, they are more likely to remember you the next time they want to buy a similar product.   More Social Media Traction  With the increase in ‘unboxing’ videos on the internet, people are capturing their unboxing experience more than ever now. If you provide a media-worthy experience to your customers, it leads to an increase in your brand reach on various platforms and free word-of-mouth promotion.    Build better brand loyalty   When you deliver an upgraded experience to your customers, they come back to you happily. Hence, custom packaging enhances your brand loyalty.  What’s Included in Custom Packaging? There are various ways you can provide custom, unique packaging to your customers. You can customize the packaging of your products inside and out. Let’s dive into what and how of it.  Exterior Printed Packaging   Exterior printed packaging gives you a chance to be creative and showcase your brand voice with colors, prints, or any additional material. You can creatively utilize branded tapes and stickers or go all together into a product-based packaging.   Filler and promo materials Inside the box, you can be much more creative than outside it. For example, you can put personalized notes, filler, tissue papers, other product samples, promotional discount coupons, special offers, and more.  You can also be creative with fillers; use confetti as a filler just like The Bees Knees. They put colorful bee confetti, and inside of their box is printed with bees as well.  Cost – Is It Worth It? Custom packaging may sound like an expensive investment. However, it isn’t necessary if you are trying to cut costs. If you are not ready for custom packaging, unbranded wrapping can still be a great option.   If you decide to go with custom packaging, prices can range from $0.10 – $10.00 per box. It depends on the quantity as well; as the quantity goes up, the price goes down. Moreover, many factors go into custom packaging, including size, filler materials, quantity, ink coverage, materials, and tooling. Decide all these beforehand to save costs later on.   To conclude, investment in custom packaging is worth it if you want to stand out in the crowd. Start slowly with personalized notes and coupons in the box, and note the difference in your customer’s experience with you.

Expedited Shipping is getting a lot of traction, but what makes it so special? And how can you, as a seller, take advantage of it? Find all the answers in this blog post and exceed your customers’ expectations with FHU.

E-commerce business is a new way of success for business owners. With a boost in e-commerce due to recent global events, sellers are exploring the online world more than ever. Let’s learn about what it takes to make your e-commerce a success!

Products that enters the cart but never makes it through the transaction are “abandoned” by customers. Read this article to know why buyers abandon and how you can prevent it to boost your sales and build a reliable and trustworthy brand.