7 TIPS TO SHIPPING COSTS SAVING
Reducing shipping expenses for your e-commerce business is an excellent method to boost profits. Small firms, in particular, can benefit significantly from reducing shipping costs. Less expensive shipping increases profits, especially if a free shipment is offered. Customers are more likely to finish a purchase if you charge reduced shipping charges.
So, what steps can you take to minimize your shipping costs? Does it seem like it might be possible to get a lower delivery rate? Here are 7 tips for saving your shipping costs:
Reduce Package Weight
You can't reduce product weight, but you can reduce packing and infill.
• Always use a bag instead of a box. Translucent or plastic shopping bags are safe for most apparel.
• The thickness of flexible cardboard boxes varies. Use the lightest packaging possible to protect your goods.
• Divide the box by product. Ship in a box no bigger than the order's contents. This minimizes the quantity of infill required.
• Reduce the infill's weight. Always use air-filled pillows. Test the weight of a standard order with various infill types to discover the cheapest option.
• Reduce product packing. Branding is reflected in the packaging of your items. It also increases product weight. Find innovative ways to brand without adding bulk to your orders.
• Small changes in packing materials might add up to big savings in e-commerce shipping costs. You'll also save on packaging and filling.
Reduce DIM Weight
Shipping in smaller boxes might also save you money on DIM weight. All major airlines utilize DIM weight to calculate size. Due to the size of the box, a 5-pound delivery could be taxed as though it weighed 6, 7, or even 10 pounds.
Heavy or delicate objects are primarily affected by DIM weight price. A little product in a large package with lots of filling is a DIM weight fail. This packing method might raise e-commerce shipping prices. It may feel safer to ship orders padded. Even fragile items can be successfully sent with minimal filling if properly boxed and packed.
Canceling DIM weight price can lessen your DIM factor. Pack your products in the smallest boxes possible to reduce shipping expenses. Work with your warehouse to reduce DIM weight charges.
Boxes for Shipping
Shipping costs can be reduced by consolidating orders into fewer boxes. A 5-pound FedEx Ground box from Knoxville, TN to Gainesville, FL, costs $11.61. A 10-pound box to the same address costs $14.32. $20.62 for a 20-pound box
Assume you sell toolkits. Each kit is 10 lbs. The kits are safely packaged and do not require an over box. Then you ship each kit in its own package. Shipping two kits in a box cost $18.62 instead of $28.64. In this case, sending two kits in one box saves 35% on postage.
One of the most straightforward strategies to cut shipping expenses is to consolidate orders. This may also help give volume discounts.
Save on Express Shipping
Orders should be processed soon to avoid expedited shipping charges. If an order sits at the fulfillment center for days before being picked and packed, the opportunity for on-time shipping shrinks. The faster you ship an order, the longer you have to meet consumer expectations. You may lose money if a consumer pays for expedited shipment and the order is late. You may need to pay extra for expedited delivery.
Cut Shipping Distance
It also reduces e-commerce shipping costs and delivery times. Shipment zones affect shipping costs. The zones approximately correspond to the distance between the package's origin and destination. A cargo sent to Zone 2 is cheaper than one sent to Zone 8.
Working with an online business with multiple warehouses can minimize shipping costs. The closer a warehouse is to a customer, the cheaper shipping.
Deal with Carriers
Bulk shippers can bargain with FedEx, UPS, and other carriers. Smaller businesses may be able to negotiate lower costs. But even tiny and new enterprises might benefit from carrier savings.
If you sell via e-commerce, investigate if your orders qualify for cheaper pricing. Also, your order fulfilment company generally ships in bulk. Ask whether your fulfilment provider can save you money.
If you want to save money on shipping, you might think it's cheaper to conduct your own fulfilment. Many online stores find that outsourcing fulfilment saves money.
Third-party logistics might help you save money on fulfilment and shipment.
Warehouse adaptability. You are not tied to a warehouse lease. You can adjust the amount you pay for shelf space as needed.
Packagers. Your products will arrive in better condition thanks to your warehouse's packing experts. You save money on return and re-shipping. Decrease or avoid DIM weight price by using their packing knowledge.
Discounts. For example, 3PL services may offer discounted shipping prices. They may be able to pass on some of these savings to you. Order warehouses acquire a lot of boxes and other packing materials. Your third-party logistics provider may help you save on packing.
Inventory control. Use the knowledge of your center's management. They can assist you set refill levels and stocking levels. Expert inventory management help will ensure you have enough stock to fulfil all orders without overstocking.