Expensive Start up Delivery Costs eCommerce

markodinho1

I am starting an eCommerce store and I am looking to find a courier to deliver packages around Ireland.

I contacted DPD and they told me for an early business the cheapest I could send a parcel was €6.85 plus vat ((approx €8.45 incl. VAT).

This seems way too much for a customer to pay in my eyes.

Since I am depending on a courier I need to find cheaper alternative. Does anybody know a courier that can deliver packages for a reasonable price for a start up business?

sysprogrammer

would ParcelMotel or Parcel Connect work ?
Customer gets a few days to collect.

fritzelly

How much is the average order? 8 euro may not be that much

If it's low priced stuff then why not send normal post with An Post, most postal services do not lose that many parcels considering the volumes

Free Delivery over a certain order value is a great upselling point

Build the cost of free delivery and lost parcels in to the price

Have checked this out before and in Ireland you do not have many options unless you are doing mega business!

What are you selling - in a vague way if necessary?

markodinho1

I am selling homeware gifts and gadgets through my gift store.

I am only launching the online platform so don't have an average order yet but prices range from €6-€30.

With An Post they can do 25 parcel labels for €203 (€8.12 each) but I think I still need to supply packaging materials.

Delivery from one Parcel motel to another Parcel motel can be done for €4.50 which could be an option as long as they are accessible enough nationwide.

I will try juggling the price a bit also.

is_that_so

That seems to be about right for a package. You should be able to source packaging at a reasonable rate and calculate its cost per unit. Roll it up into the price or add it to the P&P. Concur on the free delivery above a certain price. If your top price is say €30 then free delivery probably above on orders above €50. Initially you could consider just going to a P.O and sending them out yourself especially if the weight of a package is going to vary and price to send it will too. An Post will collect but you need to have a minimum number of items. Best of luck with it.

JMR

We use a fulfillment company based in Dublin.
They store our products for a monthly charge per shelf space / pallet
€1.25 to pick the order and package in an opaque mailing bag
€6.00 next day delivery anywhere in Ireland, typically with GLS.
Delivery charges for Europe and elsewhere differ

The above is for packages < 20Kg, which all of ours are

markodinho1

Thank you guys for the advice.

A fulfillment company would be ideal but I'm not sure if any will work with me until I reach a certain amount of orders.

DPD told me I need to be sending 15-20 packages a day for their fulfillment service.

hairyslug

An Post charge me 4.65 at the moment. I'm averaging about 10 orders a day. Try and arrange a meeting with a rep and possibly be a little over generous with how many you think you may ship.

tacofries

hairyslug wrote: »

An Post charge me 4.65 at the moment. I'm averaging about 10 orders a day. Try and arrange a meeting with a rep and possibly be a little over generous with how many you think you may ship.

I'd second this...

duploelabs

JMR wrote: »

We use a fulfillment company based in Dublin.
They store our products for a monthly charge per shelf space / pallet
€1.25 to pick the order and package in an opaque mailing bag
€6.00 next day delivery anywhere in Ireland, typically with GLS.
Delivery charges for Europe and elsewhere differ

The above is for packages < 20Kg, which all of ours are

What other charges are incurred? Storage? Insurance? Or are they included in those costs per package?

JMR

duploelabs wrote: »

What other charges are incurred? Storage? Insurance? Or are they included in those costs per package?

Storage is charged at a monthly fee of €40 per 2 pallets
Insurance is covered by ourselves.

No other charges

tacofries

JMR wrote: »

We use a fulfillment company based in Dublin.
They store our products for a monthly charge per shelf space / pallet
€1.25 to pick the order and package in an opaque mailing bag
€6.00 next day delivery anywhere in Ireland, typically with GLS.
Delivery charges for Europe and elsewhere differ

The above is for packages < 20Kg, which all of ours are

That seems very expensive to me! If you are doing some volume you can get the storage of a few pallets for free and your courier rates also seem to be on the extremely high side. I don't know what you're selling but if it isn't of a crazy size//weight and you ship above 60 parcels per week you could probably knock at least €1.25 of those prices.