How to Reduce Shipping Costs

Written by Robert Miller

Taking care of shipping costs can be quite a hurdle, especially for the growing e-commerce businesses. Even though shipping is quite costly, we cannot ignore the fact that it is a central aspect of the e-commerce market. The best news is the several factors that you can implement to enjoy favorable shipping rates. Some of these factors are highlighted below.

  • Package Size

The size of the package is one factor that contributes significantly to what you will be charged for shipping your product. With this, you need to preferably use lightweight package boxes. Moreover, you should always avoid packaging products that would fit into small-sized boxes into larger boxes. Also, you can use poly mailers other than boxes for lightweight products. This should also be put into consideration even when you are receiving customized packaging from your package carrier.

  • Third-Party Insurance

The usual carrier companies that engage in shipping services tend to be more costly compared to the third party insurance agents. For instance, a carrier will charge you $0.90 for each $100 of insurance. On the other hand, the third party insurance will charge you $0.55 of the same. With the third party insurance, you will be able to save much on shipping insurance costs at the end of the day.

  • Negotiation Power

Most growing businesses assume that carrier negotiations are only for the booming e-commerce businesses. Well, that’s not it. If you are a small business and you would like to cut down on the shipping costs, you can engage in carrier negotiations. In this case, you can be able to bargain for lower shipping rates if you own a record of shipping a large number of packages annually. The moment you secure a favorable shipping package with your preferred carrier, don’t forget to add it to the Ship works.

  • Determine Your Shipping Location

Typically, the international shipment carriers have high shipping rates because they ship internationally. As an e-commerce trader, you should be able to determine your shipment radius because it will enable you to come up with the most convenient carrier option. If your shipments are within your locality, you can enjoy low shipping rates from the carrier that target local deliveries within your region.

  • Online Shipping

Compared to the US postal service shipping, online shipping is remarkably pocket-friendly. This is booking online with the postal office that in return gives you a free pick up service as well as shipping supplies. Another thing that makes online shipping quite affordable is that you can save up to 60% on express mail and 16% on urgency mail orders.

  • Prepaid Shipping

Paying for shipment one at a time every now and then can make the process quite costly, especially businesses that are starting off. In the place of this, prepaid shipping is recommended where you acquire upfront shipping labels at a discounted rate of 20%. This works best for a trader that is aware of shipping packages that weigh the same.

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