Small-business owners are constantly looking for ways to improve their bottom line and maximize profits. Reducing your business’s shipping costs is a proven way to reach this objective. Low shipping costs also improve user experience and grow a repeat customer base.
With large ecommerce sites constantly raising the bar for low rates, you may be wondering what you could do to compete with industry giants while maintaining scalability. Below, we list proven strategies to help you reduce shipping costs without compromising on quality.
Negotiate Shipping Rates
Did you know that shipping rates through your preferred carrier can be negotiated for a lower price? Many shipping companies offer discounted rates for businesses that consistently ship high volumes. Even if you are a smaller operation, don’t hesitate to inquire about bulk shipping discounts. Building a good relationship with your carrier’s sales representative can also open the door to special deals and reduced rates tailored to your needs.
Purchase Discounted Shipping Supplies
Shipping supplies can add up quickly, especially if you buy them at retail prices. Consider purchasing supplies in bulk from vendors that offer discounted rates for large quantities. Many online platforms provide lower prices for items like boxes, bubble wrap, and packing tape.
As you compare shipping supplies, consider eco-friendly packaging materials that are lightweight and durable while appealing to environmentally conscious consumers. This seemingly minor adjustment can lead to significant savings over time.
Reduce Packaging Dimensions
The size of your packaging can have a huge impact on your shipping costs. Carriers calculate shipping fees based not just on weight but also on dimensions. Start by accurately measuring your packaging dimensions and determining what size mailer or box could cut shipping costs while protecting your product. Investing in custom boxes or packaging solutions tailored to your products can save you money while protecting your items during transit.
Opt for Prepaid Shipping
Prepaid shipping is an often-overlooked method for reducing shipping expenses. By prepaying for a set number of shipments, you can lock in a discounted rate and purchase labels in bulk to save time. This is particularly useful if your shipping volume is consistent month to month. Prepaid shipping can allow you to manage your shipping budget better, providing predictability and lowering overall costs.
Use Third-Party Shipping Insurance
Carrier-provided insurance can be expensive, and often, you don’t get the best value for your money to protect your products during transit. Instead, consider third-party shipping insurance providers, who generally offer better rates and more comprehensive coverage. This can be a smart move for small-business owners, especially if you routinely ship high-value or fragile items. Just make sure the third-party provider is reputable and trusted in the industry.
Offering competitive shipping rates and quality service can improve your bottom line and scale your business. Begin implementing these strategies today and see the difference they can make for your small business.
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