If you’re managing a small-scale business or eCommerce store, you can improve your bottom line and maximize your profits by reducing shipping costs. You might also get a more favorable outcome in taking the time to lower shipping costs. Lower shipping fees will increase your profit margin, especially if you offer free shipping. Your customers will more likely end their transaction on a positive note if you charge lower shipping charges, especially if they’re paying for shipping.
Below is a guide that will teach you how to reduce your store’s shipping fees, allowing you to attract more people.
Do an In-depth Research
You can find many logistics companies that cater to local and international customers and neighboring places. On top of shipping time, these have different fees. Don’t be shy to ask for a price quote in looking for a courier service provider. You might get a higher quote for the same size and shipping time from one courier and get a lower one from a different company, making research the key to lowering your shipping costs.
It can be time-consuming and tedious to check each courier’s website to compare their rates. Making the shipping process easier also entails using online tools that allow you to input the parcel’s dimensions and weight. You’ll instantly get comparisons, including discounted charges. You can also integrate other platforms into your eCommerce store to automate the shipping, saving you and your customers more money.
Use a Shipping Discount
You can also avail yourself of the discounted shipping rates offered by logistics companies. You’ll also get shipping rate discounts by talking to your chosen courier. Typically, they give out deals based on the number of packages you’ll be shipping out. You can get a higher discount from your courier by sending out more parcels. You’ll have to create a calendar for your shipments and send packages out in bulk if possible.
Doing that will allow you to find more affordable discounts than sending parcels individually. You can also use a shipping solution that offers bulk discounted shipping rates, despite the volume of your shipments.
Buy the Supplies in Bulk
In addition to working around and negotiating the charges, you can also save a massive amount of money in buying your shipping supplies in bulk. It includes packaging tapes, boxes, pillows, pads, and more, and these supplies fall under the costs that you have to think about when sending out your products. Buying the packaging and shipping items in bulk is helpful, especially if your shipments and orders’ volumes are high.
If your orders and shipments aren’t that high, you should still store these items properly because you can still use them for your other transactions.
Utilize Flat-rate Shipping
Freight Match transportation explains that flat-rate shipping refers to when a courier or freighter will charge a flat rate for your items. Your courier will not check the package’s weight and size, so if they offer flat-rate shipping, you’ll have to maximize it. You can opt to ship heavier and bigger parcels with flat-rate shipping because it’ll be more expensive to ship out at regular prices. You can also save a considerable amount of money by shipping these items at flat rates. Have lighter and smaller parcels sent out with their standard charges.
But if you’re selling lighter and smaller items, you can opt to ship them in bulk so you can maximize the flat-rate shipping. If not, do your research to determine which option best fits your business.
Use Your Courier’s Items
Most eCommerce stores opt to use their packaging materials to leave a good image for their brand; however, buying the packaging materials yourself might be more expensive than using your courier’s packaging materials. If the dimensions exceed the guidelines set by the shipping company, they can charge you for additional dimensional costs.
Most shipping companies will charge you for additional dimensions to maximize their shipping and storage areas. Instead, it’ll be best to use the courier’s packaging to save your business money. You can be confident that the courier will not charge for more.
Use a Shipping Platform
Depending on what you want to send out and its destination, you might find different price ranges, making it more challenging to budget and plan efficiently. Due to the birth of shipping platforms, you can more easily send your products while also maximizing your income. Managing your eCommerce store entails automating the operations to save yourself more time and money.
You can also integrate these platforms with eCommerce tools, regardless of what medium you’re using. Every time a customer checks out or adds a product to their cart, it’ll automatically reflect on your eCommerce platform.
High shipping costs are the reason people don’t shop online. With the tips above, you can lower your shipping fees while also streamlining the process and expanding your services, amping up customer satisfaction and profitability.