Know-How Exchange : Strategy

Typically the retailer pays the shipping. You as distributor may want to negotiate with shippers a best rate for them. Know your competitors and their rates. You don't want your rates to be out of line.

We are a consulting company that works with wholesale distributors and their manufacturing partners pretty much exclusively.

The answer to your question is - it depends. There is no clear cut rule. It depends on your product and your competitive situation.

Here are some best practices:
-->Always understand your total cost (cost of goods as well as freight). Many people get into trouble because they do a poor job of understanding these.
-->Set a minimum order size for freight terms. If an order goes below that size, charge freight. In the long run it encourages your customers to think and place better/larger orders.
-->Set you use UPS machine to add a "surcharge" on top of the normal UPS charge.
--> If you do a significant number of shipments (anything greater than 40/week) renegotiate your shipping charges.

If you have additional questions, you can reach me via my profile.

You do.

Shop around for the best deals on shipping you can find, THEN, turn those deals into a benefit that you offer to your buyers—a benefit of doing business with you—and it will
pay for itself.

Gary Bloomer
The Direct Response Marketing Guy™
Wilmington, DE, USA