There are many options to consider when planning to ship your items. You may keep inventory and ship them yourself, a Drop Shipping service, or a combination of shipping methods. Whichever you move forward with, determining which methods will work for you the best, and establishing a system will ensure timely delivery and happy customers. You will want to take care when completing the Shipping & Handling tab of your Configuration.
Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer. As in retail businesses, the majority of retailers make their profit on the difference between the wholesale and retail price but some retailers earn an agreed percentage of the sales in commission, paid by the wholesaler to the retailer. This may leave smaller room for profit but may reduce both overhead costs and time to market.
*If a client is using a single wholesaler/drop shipper and does not meet SLA level needed to use Warehouse option, do the following:
# Update the address on the Site Information tab with the drop shippers address.
# Create a ticket for the creative team to hard code the site with the clients address which will update contact us, etc. fields throughout the website.
When considering shipping USPS determine which packaging you will use. Familiarize yourself with the expedited shipping methods available with USPS along with their "Media Mail" shipping rate that may save you money if your customers can wait for the goods and you are in fact only shipping media, ie books, etc.
UPS has a number of shipping methods available, commercial, residential, expedited, and ground. If you plan on shipping with UPS you will need to determine if you want a scheduled pickup, or will you be able to call when you need a pick up. You will also need to consider if you will establish an account, and will you pass on your negotiated rates onto your customer, increase your rate by a certain dollar amount or percentage (controlled in the configuration), or not use your negotiated rate at all.
FedEx has a number of services available similar to that of UPS. You will want to do comparisons to determine which combination of shipping services you will offer, and which will offer the best rates to you. You will need to have an account with FedEx to enable it as a shipping method on your site. In other words your site will use your account information to pull shipping rates and you will have the option of adding a certain dollar amount or percentage on top of that rate to pass on to your customer.
Once you sign up for the proper FedEx account, you will want to gather all of the necessary materials that you will need to later configure your shipping options. In order to do this please visit: http://www.fedex.com/us/developer/migration.html.
This FedEx site page will tell you how to get started with FedEx Web Services. Once you have established that this is what you would like to do, please click step 5: Move to Production. After signing in with your FedEx information, you will be able to obtain a Production Key Link at bottom of screen. You will then be able to use this key, along with other pieces of information sent along with it, to configure your shipping options in WSM.
When enabled the free shipping setting removes shipping costs from the following shipping options
FedEx SmartPost/Economy Shipping (5-8 Business Days) Available for US only
Basic Shipping Basic Available for US and US territories
UPS Ground Available for US and PR only
UPS Saver Available for CA domestic only
FedEx Ground (1-5 Day Commercial) Available for US only
FedEx Ground Home Delivery (1-5 Day Residential) Available for US only
USPS Retail Ground (2-8 Days) Available for US only
USPS Media Mail (2-8 Days) Available for US only
FedEx Freight Economy x Available for US only
Resources (only if needed)
Definition from Wikipedia.org