Buying Wholesale - Shipping and Freight Basics

By Robert Cyr

Finding a wholesale supplier who offers low pricing is but one part of the sourcing equation. The merchandise you purchase must be shipped from your suppliers warehouse to your location. Smaller, compact order typically will be shipped using one of the three major carriers which are UPS, FedEx and DHL. UPS is by far the world's largest package delivery company delivering over 15 million packages daily. UPS, FedEx and DHL can deliver packages to your home without a "residential Fee" often charged by larger freight companies.

All three of the above shipping companies have a great tracking feature which will allow you to track your order from point of origin to arrival all by the use of a tracking number. The tracking system is a great tool for you as you will have an estimated day of delivery.

Depending on the size, volume and weight of your merchandise order the supplier you are buying from will often seek out the most economical way to have your order delivered. Each of the three shipping companies UPS, FedEx and DHL can handle large orders shipped in several boxes to one destination.

There is a point at which the cost associated with multiple boxed orders should be palletized and therefore shipped through a traditional freight company. It is much easier for the shipper (Company you are buying from) and more economical for you the “receiver” to have your order shipped LTL (Less than Truckload).

A pallet, which is sometimes referred to as a “Skid” is a wooden transport structure (Base) that supports goods in a stable fashion while in transit. A standard wooden pallet is 40″ by 48″ and can range in height due to the amount of merchandise being shipped. The shipper simply stacks boxes on the pallet and then uses shrink wrap to secure the merchandise while in transit.

How much does it cost to have goods shipped by pallet? This will vary due to may factors including the type of merchandise being shipped(class), weight and destination. On average shipping for one pallet will range between a low of $150 (Short distance) to about $400-$500 (across the Country). While this might sound substantial the advantage to LTL shipping is the fact that multiple pallets will lower your cost per pallet freight charge. For example: if one pallet being shipped costs $300 an additional pallet (Same Order) might incur another $75 there by lowering your actual freight cost per pallet to $187.50. It is advantages to order as much merchandise as possible to receive maximum freight discounts

Two key points to think about when ordering merchandise by the pallet:

• If you are having your pallet delivered to a residence there is usually a “Residential Fee” which will be added to your freight cost. Usually between $25 - $75 depending on the actual freight company. It is best to avoid this fee by having your pallet(s) deliver to a business address or the nearest freight terminal closest to your door.



• If you do not have a forklift or loading dock you will need to make sure the trailer is equipped with a lift gate. A lift gate will allow the truck driver to lower your pallet to the ground once delivered. A lift gate trailer will add an additional fee to your total cost usually between $30 - $50.00. Please note: if your pallet consists of smaller boxes stacked and shrink wrapped you might be able to have the driver simply cut the wrap and hand the individual boxes down to you with the use of a lift gate.

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The The Closeout Industry - a wealth of information centered around wholesale closeout merchandise. Author and consultant, Robert Cyr has educated thousands of entrepreneurs offering advice relating to sourcing name brand merchandise far below wholesale pricing.