Reduce Your Shipping Cost With These Expert-Approved Tips

Shipping Cost

Expert-Approved Tips

Shipping is a necessary part of life for many people worldwide. In fact, almost everything you use will have been shipped from somewhere at some point in time. However, it can be tricky to navigate for such an essential service. Different sizes, costs, and delivery times can confuse the uninitiated. This post will teach you some expert tips to reduce your shipping costs, whether a sole trader or a small to medium-sized business.

Use A Third-Party Service

Many people believe that they can usually reduce the amount they pay for shipping by doing the entire process themselves. However, this is not the case, and by using a third-party service that specializes in this business, you could end up saving a significant amount. Get the best DHL shipping rates with Coolparcel or similar services by informing them of your needs and letting them sort everything out on your behalf. Although it can seem counterintuitive to pay someone extra to do something, you will be surprised at what you will save in the long run, mainly if you deliver many packages.

Reduce The Cost Of Shipping By Negotiating

Shipping is a high cost for businesses. One of the ways to reduce the cost of shipping is by negotiating with your shipping company. You can often reduce the cost of shipping by simply negotiating with them to see what they can offer you. The more you negotiate, the more savings you can reap from your supplier. Shipping is a pretty cutthroat industry, and many shipping suppliers will be happy to reduce the cost to keep you as a customer. However, if that doesn’t work out, you can move on to the next step.

Compare Rates To Find The Best Deal

As you already probably know, shipping is one of the most significant expenses of any business. Unfortunately, most companies only offer a single shipping option which usually comes at a high cost. However, it’s possible to find cheaper shipping companies that may provide better service and competitive rates without sacrificing quality or speed. Know your options when shipping with any company by shopping around for the cheapest company in your area and compare their rates with other companies to see if you can find a better deal! 

Shipping

Obtain Third-Party Shipping Insurance

This option is by far the fastest way you can reduce costs. Most shipping services will offer insurance if your goods are lost or damaged in transit. However, they typically charge an extortionate amount for the privilege. You can opt for a third party to insure your items and reduce this cost. Third-party shipping insurance is similar in that it covers the value of your object in case it is lost or damaged, except usually at a much more amenable price. This means that you don’t need to worry about items not reaching their destination, as this insurance will reimburse you for any losses incurred during transit.

Beware Of Shipping Carrier Fees

Carrier fees are costs that a shipping company charges for its services, which vary depending on the country and region. There is no standard of what an “average” carrier fee is across all countries or territories; this price varies significantly based on e-commerce marketplaces in each country or region as well as what type of service you want your package to receive: expedited, priority, priority express, or standard. While there isn’t much you can do to limit the cost; you can usually plan more effectively through CartonCloud if you know in advance what they are.

Package Your Products Optimally

Packaging your products optimally is one of the most important aspects of running a business. It ensures that the customers get their product in pristine condition, and it also protects it from damages during shipping and handling. However, the added advantage is that you could save money by optimizing how you package things. 

Reduce The Weight Of The Package

Many logistics companies charge by size and weight. Therefore, it is in your interest to reduce the weight of your packages. This might not be possible in all instances, but you can reduce the filling materials, use bags if possible, or choose lightweight boxes. However, remember not to sacrifice too much in the pursuit of weight savings if it means your items end up damaged.

Shipping Cost

Consolidate Packages

Package consolidation is the most efficient way to transport many items and thus, save money. Consolidation will be most effective if you have regular customers who order many things simultaneously but can still work in almost all situations. You simply wait for all the items to be ready, then package them up together. You will save time and effort, and your customer will get everything they order in one go. It’s a win-win for everyone!

Make The Packages Smaller

In order to reduce shipping costs, companies usually offer their customers a variety of different options. These packages often contain the same items, but each package’s weight is distributed differently. You could change the filling material or even look at more exotic ways of packing that keep the box’s strength intact but reduce the size significantly.

Save Money By Avoiding Expedited Shipping Charges

Expedited shipping is a type of shipping that offers a reduced time frame for delivery by the post office. The time frame can be anywhere from 24 hours up to 3-5 business days, depending on the type of service. While this is a fantastic service, the fees are usually extremely high and can wipe your bottom line if you are not careful. Therefore, you should only use it if you really need to and ensure that you price it into your product.

Charge Customers For Shipping

This option has become increasingly challenging to do these days with the rise of Amazon and free shipping being prevalent in the industry. However, there are some ways you can get around this. For example, you can offer free shipping if your customer buys a certain amount, and if they are under, they will incur a small charge. This has the benefit of increasing revenue and allowing you to put into action some of the other tips in this post, such as consolidated packaging.

You can employ several strategies to help reduce your shipping costs, but you must also make sure that you consider the return on investment. You should also review the process from time to time and keep it updated to maximize its effectiveness.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.