10 ways that shipping costs are part of manufacturing a product
Here is a link to the first video: I will have 10 when I am done: powers of Ten Ideas!
1. shipping material from one manufacturing facility to another
shipping the product from where it is made to the packaging facility
2. Shipping the finished product to a "warehouse"
My warehouse is my house
3. shipping across multiple carriers
boat -> train -> small package delivery
4. Shipping from the warehouse to distributors
These can be a distributor like D&H or direct to fulfilled by Amazon warehouse.
5. Paying for expedited shipping
Shipping by air instead of freight
6. Time: shipping door to door can take 5 weeks to 3 months
You need to plan ahead.
7. Shipping to the final customer (online sales)
Postal rates can swing wildly. You may be competing against someone from a country that subsidizes shipping. The US used to do this. I used to be able to ship anywhere in the world for $3.12. Now it costs up to $18.
8. Shipping from distributors to stores or between warehouses
Amazon does this as part of their services to you. Even if you don't pay this cost directly as a manufacturer, the costs of shipping from a warehouse to a store needs to be covered by your retail price.
9. Offering "free shipping".
If your item is lightweight you can do this. Be sure your price can support it
10. Shipping on returns
Depending on the product sometimes it makes more financial sense to just give somebody their money back and have them dispose of the product. You will have to cover this occasionally, and it is all loss.
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