Thursday, April 21, 2011

What is package consolidation and can you save by consolidating packages when using Shipito?

Shipito Package Consolidation


Package consolidation is a process where packages are taken and put in one bigger box. When Shipito consolidates packages, they use a box you selected on consolidation page (usually USPS size limit 26"x13"x13").

Package/Parcel Consolidation: Bigger box vs. smaller box


A bigger box is available on Shipito (36"x17"x17"). But please note that the bigger box has limitations for choosing shipping methods (some countries have lower size limits for postal shipments). You will see if you can select your preferred shipping method on consolidation page.


Also note that big and heavy packages increase risk of damages during shipping. The 36"x17"x17" box is riskier to ship than the 26"x13"x13" box.


If you need bigger box, Shipito has offers a 37"x37"x26" box which is really big (you can use it for DHL, FedEx Freight or Shipsourcing container). You can also place a special request and Shipito will pack your packages on the pallet (might not be cheaper due to the weight and cost of the pallet).

Also note that some dimensional weight is used for some shipping methods, but Shipito employees usually try to use the smallest box possible.

If it is not possible to consolidate all packages/parcels into ONE box


Shipito tries to consolidate all packages in one box. If that is not possible they automatically use another box. You can also select to return extra packages back in your mailbox on the consolidation page.

Remove retail packaging vs. removing ALL packaging vs. keeping outside box


Another useful feature that Shipito offers is the Package removal.


For example retailer sends a pair of shoes packed in the nice retail/product box which is placed in bigger box for shipping. There are three options available:

  • Keep outside box (they will consolidate the box as received)

  • Keep retail packaging (outside box is thrown away, shoe box stays)

  • Remove all unnecessary packaging (shoe box is thrown away, only shoes are packed)
Shipito package consolidation page: Keep outside box, Keep retail packaging, Remove all unnecessary packaging Shipito package consolidation page: Keep outside box, Keep retail packaging, Remove all unnecessary packaging




If you are concerned about fragile items, you can place a Special request, so that Shipito can add extra packaging material. Or just keep fragile items in original boxes (for extra layer of protection).


Note that by removing all unnecessary packaging you can save on shipping a lot, since packages become smaller and lighter. But please note that if you will need to return an item, it will have to return it in retail packaging.

Can't I just order multiple items from a large online store like Amazon and avoid consolidation?


Amazon prices are usually good, but sometimes you may find the same stuff cheaper elsewhere. Besides the major problem is that even if you make a single order, there are several reasons why you may get it in multiple packages:

  • Amazon has a marketplace. Orders from many sellers of the marketplace are not fulfilled and shipped by Amazon itself.

  • Some items are shipped from different Amazon fulfillment centers.

  • Orders marked as gifts may arrive as several packages.

But this list doesn't seem to be complete. For example, I ordered 4 toys from Amazon last week. All these toys were fulfilled and shipped by Amazon. All 4 toys would fit into a 26x13x13 box. But Amazon has sent these toys in 3 packages, although they were sent from the same fulfillment center and all of them were shipped the same day.


Many other online retailers besides Amazon have sent me multiple packages instead of only one. But if you use Shipito, you can always upgrade your free service plan to Virtual Mailbox to enable package consolidation if you need it.

How to enable Shipito Package Consolidation


You will need VIRTUAL MAILBOX or NEW VIRTUAL MAILBOX service plan. Personally I use the VIRTUAL MAILBOX for $50/year. You can also use it for $10/month.

How to change / upgrade your "INDIVIDUAL PACKAGES" service plan to enable package consolidation:
  1. Login to your Shipito account.

  2. Click onto "Show / hide" beside "Your Shipito and Home Address"

  3. Click onto "change / upgrade" beside "Shipito ENG - INDIVIDUAL PACKAGES"

  4. Select VIRTUAL MAILBOX or NEW VIRTUAL MAILBOX
Change / upgrade Shipito Service Plan


Can you Save by Consolidating Packages?


I've been using Shipito Virtual Mailbox for 3 years. I used to pay $50 for the Virtual Mailbox plus $2 for every consolidated package. Now I pay $100 per year for the same Old Virtual Mailbox plan. I've consolidated 240+ packages into 29 (one of the packages and a magazine were sent without consolidation, one of the packages was returned to the seller, two packages were transfered from Oregon warehouse to Torrance). This allowed me to save $11'114.64 - $50*2 - $100*2 = $10'814.64 where $50*2 is the cost of the Virtual Mailbox for 2 years and $100*2 is the cost of the Old Virtual Mailbox for another 2 years.

Shipito package consolidation savings



One of the best savings for me were with jewerly items. The lowest shipping rate fee for me that comes with tracking costs about $41 (cheaper methods are also available, but I prefer to be able to track my packages), plus I pay $8.5 for mailing my package out. If I consolidate 2 jewerly items, I still pay $41 + $8.5, plus I pay $4 for 2 packages being consolidated. And if I consolidate jewerly packages with something bigger, I can save even more, because jewerly is small and weighs almost nothing.


Also I always remove shoe boxes during consolidation. It allows to save a lot, although I lose a chance to return items due to the lack of the retail packages.


It is interesting that sometimes you can save not only by consolidating, but also by just repacking. This happens even with online retailers like Amazon when they send some small item in a much bigger package.


Share your experience about consolidating packages


Do you consolidate packages? Do you remove retail package?

Links


Visit the Shipito web-site

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