Shipping and Mailing Service: The ABC of Basic Shipping Terms

If you are new to the business, understanding specific shipping and mailing terms can make transactions easier. It will also help you find your brand's most reliable shipping partner. This is highly important considering the rapid growth of eCommerce.

You might wonder whether you need a shipping or mailing service. This article will discuss the basic eCommerce shipping terms, which can help you for a lifetime.

Key Takeaways

• Mastering key shipping terms helps online business owners make informed decisions and optimize their operations for growth in the dynamic world of eCommerce.
  
  
• Knowing the differences between mailing and shipping services is essential, with mailing typically referring to standard delivery of letters and small packages, while shipping involves larger items and offers additional services like tracking and insurance.
  
  
• Choosing a reliable shipping partner like Stallion can enhance business efficiency, streamline shipping processes, and ensure timely and cost-effective delivery.

The Basic Terms You Must Learn As An eCommerce Business Owner

A journey in the eCommerce industry requires more than just a great product or website. Knowing key terms is essential for an online business owner. It helps online entrepreneurs when dealing with the complicated world of online retail.

Regardless of where you are starting your eCommerce journey, mastering these terms will:

• Empower you to make informed decisions.
• Optimize business optimizations
• Drive growth in the dynamic world of eCommerce.

Let us dive into the essential vocabulary every online business owner needs to know.

Advice of Shipment

Advice of Shipment is a document or notification that tells the person receiving the package that it's already sent out for delivery. It typically includes details such as:

• order description
• shipping date
• mode of delivery

This helps both parties to keep track of the shipment and prepare for its arrival.

Bill of Lading

The Bill of Lading is a piece of paper listing all the items in the shipment. This includes the origin, the final destination, and the shipping service. It also provides information such as the name of the shipper and receiver, as well as all the stops along the way.

The delivery person usually carries this paper with them to ensure all items in the shipment get to the right place at the right time. It's crucial because it helps keep track of everything and ensure everyone knows what's happening.

Coverage Protection

There's always a risk when sending something through shipping, like a package or a parcel. While it rarely happens, it might still get lost, damaged or stolen along the way. Thus, shippers need to have coverage protection.

It is a shipping insurance that protects the items if something goes wrong during the shipment. So, let's say you're sending clothing or cosmetics to the customer. If you buy coverage protection and something happens to the order, you can make a claim and get reimbursed for the item's value.

Delivery Duty Paid (DDP)

Imagine you have a package for international shipping. Delivery Duty Paid (DDP) means you will handle all the fees and taxes of getting the item to the receiver's delivery address.

So, instead of having the customer worry about extra costs like customs duties when the package arrives, you will pay for that beforehand. With DDP, the seller sorts out the rest, ensuring your package gets to you without additional fees or hassle.

Estimated Time of Arrival (ETA)

The Estimated Time of Arrival (ETA) is the approximate calculation of when the customer will receive their package.

The shipping services will provide their best guess about when the package will reach its destination. They will base their estimation on factors like

• Distance
• Shipping methods
• Any potential delays

However, just like how you might hit traffic on your way to meet your friend, unexpected things can happen during shipping that might cause delays. So, while the ETA gives you an idea of when to expect your package, it's not always 100% accurate.

Free Trading Agreement (FTA)

Free Trade Agreement (FTA) affects international shipping. When countries make an FTA, they agree to reduce or remove taxes and other barriers on the goods they trade with each other.

It's like creating a special zone where shipping packages from those countries demand no extra charges.

For example, Canada has several FTAs compared to other countries. Some of the notable ones are the:

1. United States-Mexico-Canada Agreement (USMCA). This agreement replaced the North American Free Trade Agreement (NAFTA) and governs trade between Canada, the United States, and Mexico.
   
   
2. Comprehensive Economic and Trade Agreement (CETA). CETA is an agreement between Canada and the European Union (EU) to reduce trade barriers and increase trade and investment between the two regions.

Hazardous Materials (HazMat)

Hazardous materials are also known as dangerous goods. These could be chemicals, gases, flammable liquids, or even certain types of batteries.

When shipping these items, there are special rules and regulations to ensure they don't cause harm to people, property, or the environment. These items should have the correct shipping labels and proper packing materials. Additionally, there's a certain way to transport these items to reduce the risk of accidents.

Hazardous materials need extra care and attention when they're being shipped to ensure everyone stays safe.

Unlock Competitive Advantage with Stallion

In Transit

When the packages are "In Transit," they are on their way to the recipient's delivery address but haven't reached their destination yet. It's moving through the postal system or shipping network to reach its final destination.

So, when you see the status of packages saying "In Transit," it just means it's still on the move, making its journey to you or whoever it's being sent to.

Methods

In shipping, "methods" refer to the different ways or options for sending your package from one place to another.

Each of these is a different method of transportation. Similarly, in shipping, you have different methods or options depending on factors like

• speed
• cost
• size of your package.

Some common shipping methods include:

1. Ground shipping. This is when your package is transported by truck or train over land. It's often a slower but more affordable option for shipping within the same country.
   
   
2. Air shipping. This method involves sending your package by airplane. It's faster than ground shipping but usually more expensive.
   
   
3. Sea shipping. Sea shipping, also known as ocean freight, involves transporting your package by ship across the ocean. It's commonly used for international shipping and can be cost-effective for large or heavy items.
   
   
4. Express shipping. Express shipping services, like FedEx Express or DHL Express, offer faster delivery options with guaranteed delivery times. The shipping costs for these services are higher, but they can be helpful when you need your package to arrive quickly.

These are just a few examples of shipping methods, and the best one for you will depend on your specific needs and preferences.

National Postal Service

A national postal service delivers mail and packages within a country's borders. The government operates the shipping process in the post office, ensuring efficient, reliable, and affordable postal services to individuals and businesses nationwide. This includes sending letters and parcels and providing additional services such as registered mail, express delivery, and package tracking.

Canada's national postal service is Canada Post Corporation, commonly known as Canada Post. It provides many postal services, including mailing services, parcel delivery, and international shipment. It also offers additional services such as money transfers, bill payment, and retail services through its network of post offices and online platforms.

Online Tracking

Online tracking is like a virtual map that will track packages when sent until they reach the customer's doorstep. It lets you see where your package is and when to expect it to arrive. So, if you send orders online, you can use this tool to check their progress. You will also know if your customer has received the packages or if there are issues during shipment.

Profit Margin

Profit margin is the money you get to keep after you've sold something. However, it is more than just that. For example, you sell lemonade. It costs you $1 to make a cup, and you sell it for $2; your profit margin is $1. It's the difference between what you spend to make something and what you earn from selling it. So, the higher your profit margin, the more money you make for each item you sell.

Quota

In online business, a quota is like a target or a limit set for specific activities or outcomes. For example, an online store might set a quota for their sales team, telling them they must sell a certain number of products each month. Or a company might set a quota for the number of website visitors they want to attract in a week. It's a way to track progress and motivate people to reach specific goals online.

Return Policy

A return policy in eCommerce shipping is like a set of rules explaining what customers can do if they're unhappy with what they bought online. It's like a store's saying, "If you don't like it or it's not what you expected, here's what you can do."

A good return policy might let the customers return the item for a refund or exchange it for something else. This rule is, of course, within a specific timeframe and under certain conditions. It's there to ensure people are satisfied with their online shopping experience.

Surcharge

A surcharge in eCommerce shipping is an extra fee that gets added to your bill for specific reasons. It's like paying extra for special handling or services. For example, if the customers want to receive the package faster than usual, the shipping company might add a surcharge to cover the additional costs.

The same goes when they need to deliver to remote or far-flung locations. So, there is an extra charge for the regular shipping fee in certain circumstances.

Tariff and Tax

Tariffs and taxes are fees you must pay when buying things from another country.

A tariff is a tax imposed by a government on goods imported from other countries. If you buy something abroad, the government might charge you a tariff, making it more expensive.

Taxes, on the other hand, are charges imposed by the government on goods or services within the country. For example, when you buy something locally, like a shirt or a pair of shoes, you'll often pay sales tax on top of the purchase price.

Tariffs and taxes help the government raise money, regulate trade, and sometimes protect local industries.

Variable Cost

In eCommerce shipping, variable costs are the expenses that change depending on how much you ship.

Imagine you run an online store. Every time you ship a package, you must pay for packaging materials, postage, and maybe even insurance. These costs are different for some packages. They vary depending on factors like the size and weight of the package, the shipping speed you choose, and the destination.

So, variable costs in eCommerce shipping are the costs that go up or down based on how much shipping you do and the specific details of each shipment.

Waybill

A waybill is like a ticket for your package when shipped from one place to another. It's a piece of paper or an electronic document that has all the essential information about your shipment, like:

• Where it's going?
• Where did it come from?
• What's inside?
• Any special instructions for delivery

The waybill travels with your package and helps the shipping company track it until it reaches its destination. It's like a passport for your parcel!

What is the difference between mailing and shipping services?

While the terms are often used interchangeably, there are some critical differences between mailing and shipping services:

• Mailing usually refers to sending letters, cards, or small packages through postal services like your country's postal system (like USPS in the United States or Canada Post in Canada). Mailing often involves standard delivery times and options.
  
  
• Shipping typically involves sending larger packages or items, especially those needing special handling or faster delivery. Shipping services are often provided by private companies like UPS, FedEx, or DHL, and they offer a range of delivery options, including express shipping for faster delivery and additional services like package tracking and insurance.

So, in short, mailing is often used for smaller items and letters through postal services, while shipping is for more oversized items or packages through private couriers or shipping companies, with more options and services available.

Consider Stallion For Your Shipping Needs

Stallion is a strong possibility for your shipping needs, especially if you're in Canada. Here's why Stallion might be a good fit:

• Competitive Rates. They offer competitive rates, specifically mentioning affordability for Canadian domestic shipping and even competing with US sellers for US-bound deliveries.
  
  
• Convenience. They offer various options to streamline your shipping process, including online label printing, pick-up services, and integrations with online stores.
  
  
• Multiple Service Options. They cater to different needs with domestic Canada, US, and international shipping services.

How much will the shipping charges be for these services?

Here's the guide to find the estimated cost:

Shipping within Canada Partners

Shipping to the US

International Shipping

Final Thoughts

In wrapping up our discussion, we've covered the important words used in the eCommerce and logistics world. These terms aren't just fancy words.

They are essential for understanding the movement of goods around the world. So, whether you're a small business owner or just sending a package to a friend, knowing these terms helps you make smart choices.

As we finish this discussion, remember that shipping is always changing. Staying up-to-date on these terms will keep you in control and help your shipments arrive safely and on time without breaking the bank.

Consider Stallion if you want a reliable shipping partner to help you understand the complex terms! Not only do they offer the cheapest service, but they also deliver the packages at a faster speed. They can also assist you in improving your business and expanding your brand!

Aman Chopra

Aman looks after the content marketing department at Stallion Express. He is passionate about helping businesses grow by providing informative and up-to-date trends in the eCommerce industry. Outside the office, you can find him on the soccer field cheering on Real Madrid.