10 Ways to Reduce Shipping Costs

by Josh Biggs in Tips on 14th March 2019

Shipping is something that no business can escape. Be it small or large, online store or offline every business will incur shipping costs for sending products to their customers, distributors or clients. Business owners have to take inflation, technological changes into consideration. It is important for the shipper to stay updated with changing trends. As it may prove advantageous for their business.

There are so many cheap shipping services available online that can help you in reducing your costs and sending your products fast and safe to your customers. It is important for any business to adapt to these new-age trends.

Imagine there is an apparel store that sells both online and offline. They incur shipping costs on a daily basis. Be it sending clothes to the customers staying in a different state or shipping damaged clothes or placing a new order to the dealer. It may cost more than you could imagine. How amazing would it be if you can reduce your shipping costs and save some money?

Here are 10 tips that can help you in reducing your shipping costs.


  1. Know your representative


It is important for you to know your shipping representative. As you would be making so many transactions with your shipping company. Shipping doesn’t end when you drop your products at the shipping company, it starts from there. You need to track your product and confirm its delivery.

So if your package suffers any problems in transit, it is important for you to stay in contact with your shipping representative as they may help you with any problems your package may encounter. And help you in delivering it safely to the concerned owner.


  1. Stick to one company


There are so many companies both online and offline offering shipping services. So choose a shipping company that would satisfy all your needs and stick to it. Once you become their valued customer you can negotiate prices and even get discounts, subsidies and special rates. You can also get to know about their special offers. Some companies even offer free order pick-up for shipping to their regulars. You can enjoy special privileges offered by the company.


  1. Shipping Calculator, flat-rate shipping


Some online shipping companies provide with a shipping calculator with which you can calculate the cost of sending products to any part of the globe. Calculating shipping cost ahead of time will allow you to make a budget around your costs. If you don’t calculate your cost ahead of time, you may get hit with surprise charges that may sink your budget ship.

So calculating costs ahead of time may help you in planning your budget effectively. Calculate the average cost/package and offer your customers flat-rate shipping. It is cost- effective and builds trust in your customers as they get to know the price of each item at checkout. Customers get enthusiastic for purchases when they qualify for free delivery on certain purchases.


  1. Discounts on shipping materials


Shipping includes so many materials like envelopes, boxes, packaging material, labels and barcodes. They can be a bit pricey. So when your placing order for these items enquire minimum two to three places and then select a buyer offering good quality at low price. Some shipping companies offer discounts on these items. While others offer you equipment with which you can make packaging supplies. They also offer software that creates labels, barcodes, packing slips.


  1. Long- distance


If you’re a seller sending your merchandise to longer distances. It is better to opt for multiple modes of transportation rather than one. International shipping costs are different from domestic shipping costs. They charge based on both packagings dimension and weight. So to save on shipping costs you can use shipping modes cheaper in that area.

Use the smallest boxes as possible, it is advisable to use Tyvek bags as they weigh less. Choose a shipping company that can deliver your packages at a low price with anticipated duties and taxes.


  1. Smart Shipping


It is important for any business to change with changing times. If not they would be stuck in yesterday which is not good for their business. So companies should also gear-up and start doing business smartly like shipping on off-peak days. Shipping on off-peak days will save a lot of money for the companies. Use technologies in shipping too. It may save time and money and also make shipping a hassle free and less tiresome. Create a system that reduces your administration charges and ensures that your carrier is paid promptly. Make everything online as it is better than handling everything manual. And there are fewer chances of misplaces important documents.


  1. No short notice shippings


Short notice shippings always cost more for shipping companies as they have to pull additional workforce like drives and carriers to deliver your commitments. So naturally, in the end, you’re going to bear the additional expenditure. These additional costs sooner or later will burn a hole in your pocket. To make it more economical for you, try not planning your shipments in short notice. It not only affects cost it also affects the efficiency of your company.


  1. Outsource transportation


To end you’re transportation worries, you can outsource transportation management to an asset-based logistics company. It may be cost efficient as these logistics companies may have all the necessary equipment and workforce that can make shipping easy.

Outsourcing this responsibility not only reduces tensions but also allows you to concentrate better on your work. These logistic companies are known for their excellent services and customer satisfaction. So there is no need to worry as your logistics are in safe hands.


  1. Workforce


Train your workforce ready to tackle any issues arising in the course of shipping. Employees work as the face of your company, so make sure that they are as professional as possible. The efficient workforce can also reduce costs to you. How you must be thinking? If your staff is efficient enough to reduce damages and shipping errors then automatically your shipping cost will stay in your budget making it a profitable deal.


  1. Customer satisfaction


Wondering how shipping costs and customer satisfaction are related. Each and every aspect relating to business are interrelated. If your customer is satisfied with your service they will keep coming back for more. If they are not they may return your goods which would be a loss as you lost your customer and also cannot get a refund on shipping costs. So make sure that your package is safely delivered to your customer. And in order to reduce your shipping cost, don’t opt for cheap packing materials. Improper packing can cause damage to your goods and brand.


Categories: Tips