Saving money in any aspect of your business means a better bottom line. It doesn’t matter what products you sell. If you’re a small to midsize organization that delivers inventory, then shipping costs are most likely a big expenditure. One that can pack a serious punch to your profit margin.
Here are a few things to consider when evaluating your shipping costs:
- The cost of your products should include shipping.
- The weight of your products affects costs.
- Shipping speed matters. If you run the risk of not delivering on time, it can create mistrust with your customers.
- Shipping in bulk can get you discounted rates. And, sometimes, bulk can mean as little as 100 items at a time.
So, are there effective ways to reduce shipping costs? Luckily, the answer is yes. Here are five valuable solutions that can help your bottom line.
1. Search for an Efficient Provider
Like many business services, going with the first provider you find, a name you recognize, or one that is down the street isn’t always a smart strategy. It’s more about finding the best match to fit your unique needs. And, don’t forget, you always have negotiating power. Some carriers may be flexible and work with you to gain your business.
It’s also important to know your shipping stats up front so you can evaluate carriers and get accurate, comparative quotes. For example, how much bulk shipping can you do to reduce costs? Do you need same-day delivery capabilities? What areas will you be shipping to?
Once you know what you’re looking for, it will be much easier to compare multiple carriers and make an informed decision. Satisfy your needs today, but also remember to plan for growth. Select a carrier that can help you scale.
2. Handle Shipping Labels In-House
Shipping labels can sometimes come with an extra fee tacked on to your shipping costs. Handling shipping labels yourself can be more cost-effective.
3. More than a Pretty Package
Packaging can get expensive. When done right, proper packaging should protect your product, showcase your brand, increase speed to market, be cost effective, and provide ultimate customer satisfaction. It’s a no brainer that if your product arrives damaged, it can have a serious effect on your business.
Make sure you’re not paying for oversized boxes for small items too. Use lightweight packing materials and reuse when possible and carrier supplied boxes and materials when available. These considerations should be a part of your negotiations when searching for an efficient provider.
Seek out carriers that provide bulk commercial packaging prices but can offer inventory storage, so you get both valuable services.
4. Shipping Insurance for Your Business
Getting insurance to cover any shipping mishaps is a must. Shipping providers will typically have some form of insurance service available for an additional fee. If it makes sense, go ahead and use that service. However, using a 3rd party insurance can definitely save you money, sometimes as much as 50-90%.
5. Build Shipping Costs into Your Product
As a small business, taking the hit for the total shipping cost can put you in seriously deep water. The Free Shipping craze isn’t right for everyone in every situation. Keeping costs in check will make it easier to roll them into your product prices. Remember to:
- Keep your margins in mind
- Research the competition to see how they handle shipping
- Figure out what customers expect to pay and the maximum they’re willing to pay
Take control of your shipping to enhance your bottom line. Your business and your customers will thank you.
Contact Gorgo Group to discuss what our packaging and logistics services can do for your company.
We make your business our priority, all in one place.
Pallets, Transport, Packaging, and Logistics for Companies On The Move.