Forums: Discussions for entrepreneurs and small business.

A while back, we decided to set up a flat-rate shipping policy, based on one of Bert`s white papers. It`s been terrific, and we`re using the US Postal Service (USPS), shipping first-class mail. Our flags fit nicely into an envelope, and meet the requirements.

We also include a Delivery Confirmation with all orders. This doesn`t provide for point-to-point tracking, but it does at least offer the customer (and ourselves) a notification of delivery.

Recently, we`ve had a few packages that seem to vanish into a black hole. They show a delivery to the local post office, but the customer hasn`t received the item. They`re not scammers---they`re legit customers, it just happens that the USPS has lost the package.

Flat-rate is around $7, on average, where UPS would raise the price to around $10. However, the customer would know exactly where`s their package, and it would include insurance.

We could put a notice on our site that we`re not responsible for lost packages, but that`s not very customer friendly. We DO offer, on our order form, the option for alternate shipping, and customers can choose UPS or FedEx if they`d like to spend a bit more money. Flat-rate shipping is only USPS, and the lowest shipping price.

So now we`re trying to figure out how to best balance customer-friendly service and low shipping costs, with potential lost packages. It`s so far been only 2 instances, a *very* low percentage, but we`re thinking we should have some sort of policy in place.

Any thoughts? I know for myself, I don`t like being restricted to only UPS. In an apartment, if you`re not home, they don`t leave the package. Yet a lot of sites only offer UPS, with no option for regular mail. I hate that.

On the other hand, to force everyone to use a US Express Mail---the only point-tracking service---would make it even more expensive than UPS in some cases.

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The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.

DefMall,
Yes, we`ve been leaning in this direction. Basically, we`d change the "default" ship method to UPS, but offer USPS First Class as an alternative. Currently, it`s the other way around.

Janie, you`ve identified exactly the main problem. If a package is lost in the mail, the carrier is solely responsible. It has nothing at all to do with us, and there`s no way we can be responsible for the way the carrier does business. BUT!....

Customers really don`t care who`s responsible for what. They pay for an order, and expect to get that order. If the carrier loses it, they identify in their mind the business with the carrier. And that`s where the Customer Service (and perception) problem comes in.

We don`t want to "threaten" the customer, telling them that it`s not our problem if their package gets lost---deal with it! And yet, we also don`t want to be re-making orders, especially during a busy time. So it`s the vote for versus vote against thing.

One option: "Although we`re giving you the cheapest prices, you could lose your order and that`s tough luck for you. We`re not the shipping company, so don`t come crying to us." :-D

The other option: "We`re charging you a bit more for shipping, but it`s because we want to know exactly where the carrier screws up, if they do. That way we can get our money back and see if we`d like to make another order or not."

The second option places the burden on the carrier, puts us into cahoots with the customer, and helps cover lost costs. I`d probably word it a *little* differently, but you get the idea. :-D

This has all been really helpful, and to echo Kathy`s note, thanks very much to everyone.

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Rosanna Tussey
Owner
New Mexico Candle Co.
http://www.nmcandleco.com

Our packages are less than a pound in most cases, and just over in a few cases. I`ve never been that big a fan of FedEx, partly due to the price and partly the way they deliver.

Overall, we`re probably going to go with UPS ground to the lower 48 states. We`ll put a policy up for PO, APO, FPO, International, and non-contiguous states. We`ll notify people that these special mailing orders will be shipped differently, and that they`ll likely be invoiced for a shipping surcharge. Not sure exactly on the wording, but something like that.

At some point we`d like to go with free shipping, but we still are more concerned at this point with the carrier and making sure we don`t lose the items.

Nautical signal flag banners made up of 8-inch flags. :-) The more thinking we`ve done, the more it looks like we got a little off track. Bert`s been a huge help in getting us thinking about this a better way.

We were going back and forth about UPS and US Mail, then worrying about how to set up a policy and disclaimer for UPS not shipping to PO boxes, and so forth. Then it dawned on me: If we simply state that we charge a flat rate for shipping anywhere in the lower 48 states, that`s all we need.

We don`t have to say we ship only or sometimes UPS. If an order isn`t something UPS can do or do at our price ($12.50), then we`ll make the decision to ship USPS Priority with Delivery Confirmation. The customer doesn`t need to get all involved, we`ll make the decision based on the ZIP code. The default will be UPS with the post office as backup.