Tips to Save Money On Shipping
Shipping is expensive. eCommerce businesses know that increasing shipping costs and carrier rates can quickly eat into their margins. This blog will go over some tips and ideas to help you save money on shipping and keep your profit margins healthy.
1. Compare Shipping Methods & Choose the Best For Your Business
There is no one-size-fits-all method when choosing a shipping carrier, so it’s important to compare services across the board to choose the one that’s right for you. For example, if your packages weigh less than 2 lbs, USPS First Class or Priority Mail can be a cost-effective option. In contrast, FedEx and UPS are better suited for larger and heavier packages. It’s good practice to utilize different carriers and services for your products to reduce your average shipping costs.
2. Negotiate Better Shipping Rates
Have a preferred carrier? It doesn’t hurt to ask them for better rates. It’s in their best interest to keep you as a customer, and as a result, are likely to offer better rates depending on your order volume. Show them the rates you’re receiving from other carriers as well. They are more likely to reduce your shipping charges to stay competitive. Bonus: Many carriers also offer free or discounted shipping supplies for some of their services. If you do choose a preferred carrier, don’t forget to ask about what supplies they can offer.
3. Utilize Your Platforms and Marketplaces for Discounts
However, not everyone has the volume to negotiate directly with carriers for better rates. Another option is to look into what your eCommerce platforms and marketplaces have to offer. Many eCommerce platforms provide built-in features or apps that let you compare shipping rates and purchase discounted shipping labels. For example, Shopify offers discounts on USPS, UPS and DHL shipping rates along with apps to integrate your favorite shipping software like ShipStation or Shippo. If you aren’t quite at the level to negotiate better rates with carriers, this can be another great way to save money on shipping.
4. Pick the Right Packaging Materials
Well-presented packaging does more than set a good first impression for your brand, it can also save you money on shipping. Shipping carriers used dimensional weight to calculate their rate ensuring they are optimizing space and profitability. If you’re using oversized boxes for your orders, you’re likely to be hit with an “oversized package” fee from shipping carriers. Another option is switching from cardboard boxes to bubble mailers. Mailers can be a great cost-effective alternative to boxes for small non-fragile products. Not only are the dimensions smaller, but they also require fewer packing supplies. Avoid the headache by investing in standardized packaging that works for your products and ensures you’re paying the best shipping rate every time.
5. Outsource Your Fulfilment
We can’t forget about outsourcing. Using a 3PL for fulfillment and shipping can save you quite a bit of money. For one, 3PL’s are in a better position for better-negotiated rates with carriers due to their volume. Not only does this give you access to their discounts, but also provides consistent pickups and reliable delivery. Second, 3PLs have a vested interest in your success and are actively looking for ways to cut your costs. They can make recommendations on the fulfillment process and know how to best pack your products while saving time, space. and money. And lastly, 3PLs take on the heavy lifting allowing you to focus on growing your business. Instead of investing in infrastructure and staff to ship your orders, and can instead use those resources for other revenue-generating activities.
If you’re considering outsourcing to a 3PL, C2W Distribution can help. We offer tailored 3PL & 4PL solutions to help meet your needs. Whether you’re looking for a shipping partner or someone to manage your inventory and fulfilment; we have a solution for you. Leave the logistics to us, while you focus on growing your business.
Interested in learning more? Contact us today to see how we can help.