im in the processes of developing my online store using the drop shipping method. for my online store I planned on offering free shipping over $50, but what im having a hard time wrapping my head around is im selling kitchen products. the product MSRP is let says $100. I get it wholesale price at $50 an the weight is 10lb but when I calculate the ship cost using UPS quote, the shipping cost cost more then the product its self am I doing something wrong here?how do I do free shipping on heavy items? I see other company who are doing the same concept of offering free shipping but how are they making money with shipping rates so high?
Third Party Carriers typically rely on dimensional weight for shipping your products. You can learn more about UPS and what they determine the billable weight here. Without knowing exactly what you are selling, it does seem like you would benefit from our app, Intuitive Shipping. We just launched last week and have already helped quite a few users with similar needs to you. We offer a free 14-day trial, and your trial period doesn't begin until after you make your Intuitive Shipping set up live in your store. I encourage you to install it and poke around a bit :)
There are 2 features in Intuitive Shipping that are really going to help you take control of your shipping and maintain your margins; unlimited custom package sizes and our Conditions feature, which is exclusive to our app.
Unlimited Custom Package Sizes
When creating a live rate within Intuitive Shipping, you can input your own custom package sizes. Additionally, you can input dimensions and weights for your inventory. What does this mean for you? Precise live rates. If you read the link to UPS, you will see why this is so impertative.
You mention that when a customer orders certain items, the shipping ends up costing more than the product itself. If you are offering any sort of free shipping promo, this will destroy your margins. With our conditions feature, you can literally exclude certain items from the free shipping calculation.
If you would like, you can contact me at email@example.com (please cite this thread) to further discuss your shipping. It's a tad difficult to go into more detail when I don't know much about your store :)
I just tried to send an item locally from Atlanta to Atlanta and found that the 10lbs shipment costs minimum $21 to send with UPS :
So yes, a 10lbs package does cost you to ship. however, if you have discounted shipping rates, this rate will further go down. And you can start with a low margin. As you grow more and more, then after 3-6 months, you can negotiate your contract with UPS to get further discounts.
To use negotiated rates and correct packaging for your shipments, you can use the Multi carrier Shipping label app as you need to make sure that the packaging happens in correct boxes with equivalent dimensions as per your expectations.