I am starting out, and looking for the best option for shipping. My product is a UPS/Battery bank which is about 10lbs, and would be packed in a 16x12x8 box if I fulfilled manually. I am on the west coast, and it looks like shipping costs range from $8-$24 East to West, and are similar between Priority Mail, UPS and Fedex.
It normally goes for $290-$300 with free shipping on Amazon, I'm looking to sell it for $245 on my site in a particular niche. I'm not interested in starting a price war on Amazon. So long as the price is higher there, I look like a good alternative. If buyers at my site see $25 shipping, then it doesn't look like as good of a deal compared to Amazon.
The Amazon MCF fees are $6 for standard, and $9 for expedited. The unknown for me at the moment is the cost per unit to ship to Amazon. I don't know what their rates are like, and I won't know what centers to ship to until labels are generated. My supplier has plenty of experience with shipping direct to Amazon, so that is an option. It shouldn't add much cost per unit for shipments to my local fulfillment center, shipments to centers further east might create an average additional $3 per unit getting them to Amazon.
Does anyone have experience with MCF? Am I right in my calculation that it is a lower cost alternative to self fulfillment using USPS/UPS/Fedex? With Amazon I could charge $9 flat for 2-day Expedited shipping and it will still look reasonable to the customer. I can't average the USPS shipping costs and charge my own flat rate since I don't have a sales history yet to draw on, but it won't be as low as $9 since that seems to be the minimum price for shipping locally.
Considering Amazon sells your goods at $290, adding the shipping cost to it, finally the amount comes out as $296.
Now, your shipping cost $245. Adding cost of Large flat rate box which is $17.50 comes out as $262.5
Difference between Amazon and your costs = 296-262.5 = $33.5
I still believe you can go ahead with this.
If you are looking to leverage Flat rate boxes provided by USPS in your Shopify store, I recommend you to get eVS account with negotiated rates and then you can use the Multi Carrier Shipping label app to ship.