Are you wondering how to save on shipping in your business? It’s a great goal to have, one that can boost the overall profitability of your company.
Every business has a business budget to follow. If you are like the average business owner, you are wondering how to cut your spending the most without sacrificing your quality, efficiency, customer satisfaction, and more.
Fortunately, there is a way to cut costs while maintaining your excellent service and that is saving on shipping.
Most business owners are paying too much to ship their products to customers. In fact, shipping costs are one of the biggest expenses business owners face. And while you may be passing those costs to your customers, chances are, you are not taking advantage of many tips and tricks that can reduce your shipping costs overall.
This is a mistake, especially since shipping can be the one factor that makes your company competitive. When you are competing against retail giants who offer fast and free shipping, you need to make a few changes to keep up with the competition.
If you are wondering how your business can save on business costs, this short and simple guide is for you.
1. Make Sure You Are Charging the Right Amount
One of the best ways to reduce your shipping costs is to make sure you are charging the right amount. While offering free shipping is great, you should not be taking a financial hit. Look at your prices and make sure you are charging enough to account for shipping.
2. Understand the Shipping Terms
A great way to save on shipping is to understand the shipping terms. Do you know the difference between flat rate shipping, priority, next day air, etc.? By understanding your options, you can choose the best one for your business and your customer.
3. Take Advantage of Business Discounts
Did you know you can save on business shipping because you are a company? If you are not taking advantage of business discounts, you need to start doing so right away. Contact your carriers, negotiate, and make sure your company is getting the best price.
4. Use Prepaid Shipping Labels
One way to cut shipping costs is to use prepaid labels. When you buy labels in bulk, you can get a discount, which will lower your shipping costs overall. Consider buying in bulk to save on shipping.
5. Compare Transit Times and Service Levels
If you are wondering how to save on your shipping budget, consider comparing transit times and service levels. Instead of thinking about shipping in terms of one-day or overnight, look at the costs for having a package arrive on a certain day. By doing this, you can make sure your package arrives on time while avoiding the inflated fees of priority shipping methods.
6. Offer Discounted Curbside Pickup
If you are a local company, consider offering curbside pickup. You can offer a small discount for picking up a package, one that is cheaper than what you would spend on your shipping fees. This is a great way to deliver quality service and save at the same time.
7. Use Carrier-Provided Packaging
A little-known way to save on shipping is to use carrier-provided packaging. Many carriers will provide their boxes for free, which can save money on shipping supplies. Contact each carrier and take advantage of any free supplies or services they offer.
8. by Insurance From a Third Party
When shipping goods, paying for insurance is oftentimes a great idea. However, insurance is an extra fee that can add up over time.
One way to save on insurance costs is to buy from a third party. The cost for third-party insurance is roughly half that of a carrier, savings that will add up over time.
9. Use Online Shipping
Did you know you can enjoy significant savings when you ship online? It’s true, you can save up to 60% of your costs, depending on the shipping services you use. As a bonus, online shipping usually comes with additional perks, such as free pick-up service, delivery confirmation, and free shipping supplies.
10. Consider Using Fulfillment Centers
An effective way to save on shipping is to shorten the distance between your facility and the customer’s shipping address. One way to do this is to use a fulfillment center. By shipping your products to a fulfillment center and sending your customer’s package from a local center, you can save on your overall costs.
11. Invest in a Postage Scale
While services like flat-rate shipping can seem less expensive, the final cost depends on the size and heaviness of the items you are sending. For this reason, consider investing in a postal scale for your business. By using a postal scale, you can determine the best way to ship, based on the weight of the item you are sending.
12. Use Multiple Carriers
One of the best ways to save on your shipping costs is to use multiple carriers. By sticking with a single carrier, you are not able to comparison shop and find the best one for your needs.
You can supercharge your efforts by using a hybrid service. For example, you can ship via an air freight forwarder to a hybrid company that will pick up your package and delivers it to the local post office to be delivered to your customer.
While this may sound like a complicated process, it is a seamless one that can save you money in your business.
Use These Tips to Save on Shipping Expenses in Your Business
By using these tips, you can save on shipping and boost the profitability of your business.
Start by learning all you can about shipping and making sure you are charging the right amount. You should also take advantage of business discounts, consider prepaid labels, and invest in a postage scale. Make sure to comparison shop for carriers and offer an incentive for customer pickups.
Follow these tips and you’ll be well on your way to saving on shipping costs.
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