Freight carriers such as Australia Post, Australian Air Express and Couriers Please offer competitive rates for satchels of set weights. The satchels offer two advantages:
If you are selling large or bulky goods that typically cube out to larger weights, it is a good idea to negotiate your rates on the lowest possible cube or cubic weight modifier. The standard road cubic weight modifier is 250kg per cubic metre, meaning that an item that is 1 cubic meter is equivalent to 250kg. By negotiating a lower cubic weight modifier such as 167kg per cubic metre you can drastically reduce your shipping costs.
The cubic weight calculation used by shipping carriers is:
Length (m) x Width (m) x Height (m) x Cubic Weight Modifier (kg)
Shipping carriers will usually base their charges on dead or cubic weight (whichever is higher).
Different carriers offer different rates to different locations. This is due to each carrier having their own delivery network. Offering multiple shipping options not only empowers your customer to make their own decision as to when and how their order will arrive, but can also be more cost effective both parties.
Where possible, organize pre-made packaging of set sizes, and negotiate flat rate pricing for this packaging. This will help fix your freight costs. You can purchase packaging from suppliers such as Signet (http://www.signet.com.au)
Shipping carriers will never adjust your freight costs down. If you pass incorrect weight values to the carrier and these values are heavier than the actual parcel weight you will be losing margin without even realising. Purchase a decent set of scales from eBay or http://www.scaleshop.com.au and make sure they are calibrated regularly.
In cases where your parcel weight is only slightly over the round kilo mark (e.g.: 1.05 kg) make sure that you round down to 1kg. Freight carriers typically round up to the next kilo starting from just .01 over the last kilo.
If you are charging for shipping using the cubic / weight based method it is good practice to add a packaging allowance of a few percentage points or grams to cover additional packaging. This can be done when setting up shipping methods and rates in Neto and will increase the calculated order weight by the defined percentage or fixed amount.