Shipping costs are one of the major expenses for small businesses. However, with proper planning and cost-saving strategies, businesses of all sizes can reduce shipping expenses.
This article will provide tips to reduce shipping costs for small businesses, including choosing the right carrier, optimising packaging, shopping for the best rates, and taking advantage of shipping software.
By following these steps, small businesses can significantly reduce shipping costs while providing a great customer experience. Read on to know the tips and why you should choose GoSHIFT.
Recognise the Principles of Shipping
Every online store has shipping issues. When a sale comes in, making an effort to produce, package, and transport your goods may be unnerving. Yet once you give it to a shipping business, it is no longer in your possession. The courier must deliver your package on schedule and in perfect condition.
Your client can have a negative experience with you if the package is missing or damaged.
The expense incurred to send goods to a customer is known as the shipping fee. They consist of the following:
- The price of labour to send an item, the cost of a courier to pick up and deliver an item, import/export fees for international shipping, the price of packaging materials like boxes and tape, as well as labour costs to send a package;
- The cost of e-commerce shipping must be calculated and reported on the merchant’s website. As a store owner, you’ll get many inquiries regarding shipping.
- To overcome this, businesses develop a shipping strategy that outlines the costs and schedules for customer deliveries. Also, businesses can work with an Australia-wide delivery service.
Ways For Small Businesses to Cut Shipping Costs
Now that you know what they are, let’s take a closer look at some easy methods for reducing shipping costs in your store:
- Recognise differences in the rate
- Reduce package weight
- Pick the proper packaging size
- Ship flat-rate whenever possible
- Lighten the packages’ overall weight
- Use Shopify Shipping to reduce carrier expenses
- Plan a local pickup or delivery
Consider how much more than a thousand parcels would cost, even if it were only a few cents per package. Lightweight packaging is advantageous for lowering shipping costs and raising profit margins.
These are some strategies for lightening packages:
- Use corrugated boxes to package goods. Compared to standard cardboard boxes, corrugated boxes are a sort of e-commerce packaging that is tougher and lighter. The space between the inner and outer layers of the box is lined with rows of tiny air-filled grooves.
- When packing, pick lightweight materials. There are several different types of packing materials with a range of weights. Use lightweight alternatives like excelsior, air pillows, packing paper, bubble wrap, foam inserts, and Versa Pak wadding rolls. The importance of the articles will be reduced by carefully packing them.
- Create a unique postal bundle. You’ll use less packing material if your shipping package closely fits the size and form of your contents. If your product is sold in large quantities, the expense of creating a specialised container might soon pay for itself in reduced transportation costs.
Use efficient packaging techniques to reduce the weight of each shipment by a few ounces. This can significantly increase profit margins and provide a respectable return on your time and resource investments.
Plan a Local Pickup or Delivery
Choosing not to employ a carrier is one option to save delivery costs. Consumers are increasingly purchasing at independent, locally-owned stores. According to statistics on consumer trends, over a third of consumers claim to have placed online orders for local delivery during the epidemic.
Customers can purchase your products from your online store and deliver them to their homes with a courier service. Even better, clients can pick up their online orders from your store. Shipping using a carrier costs more than having anything delivered locally.
Conclusion
Reducing shipping costs is an important part of managing a small business. Small businesses can save money on shipping costs by understanding the options available and using strategies such as negotiating with carriers, consolidating shipments, using the right packaging, and taking advantage of discounts. Small businesses should also look for ways to simplify their shipping processes to maximise efficiency and cost savings. By following these tips, small businesses can reduce shipping costs and improve their bottom line.
Go, People is Australia’s most innovative same-day delivery solution, offering Senders and Recipients live GPS tracking, showing drop-off and pickup status and the drivers’ locations. Experience delivery made easy with GoSHIFT!