How Reduce Shipping Costs for Small Businesses?

 

How can a small business compete with the likes of Amazon when it comes to shipping?Every year our shipping rates increase, but it seems like the big brands get better shipping discounts.Shipping is one of those unglamorous-but-crucial things that every ecommerce company has to deal with. No matter what size you are, you want to do it well for yourself and for your customers.We get that. Which is why this guide will help you Reduce Shipping Costs for Small Businesses, so you can provide a better customer experience and earn more profit in your business.One challenge every online store comes across is shipping. It can be a bit intimidating: you do the work to make, pack, and mail your products once a sale comes in. But once you hand it over to a shipping carrier, it’s out of your hands. It’s the carrier’s job to deliver your package on time and in pristine condition.How can a small niche business compete with the likes of Amazon when it comes to shipping? Every year our shipping rates increase, but it seems like the big guys get deeper shipping discounts. Is there a co-op for independent retailers where together our numbers would qualify for competitive rates? Do you have any other suggestions for how we could cut down our shipping costs?

How can we cut down on our shipping costs?

If increasing prices isn’t in the cards, and you want to trim down on costs to help make your shipping more affordable for you and your customers, there’s one big thing that’s within your control.

“When you’re thinking exclusively about cutting costs, the biggest factor you can change is your packaging,” says Thea. She sees a lot of merchants who could be saving some cash by trimming down the weight of their packaging.“It's really easy to buy or get packaging that is a little bit bigger than what you're actually sending, like if you're using a box when you could be using a poly mailer, or even a padded envelope if you need a little bit more protection. Your shipping cost is dependent on the size of the package and the weight of the package. Cardboard is heavy, and anywhere you can trim down weight will help you win over time.”

 

Some ways can reduce shipping costs right now

1.Decrease the shipping distance

Many brands pay high shipping fees when they ship to destinations that are far away. Shipping zones are the geographical areas that carriers ship to, spanning from Zone 1 to Zone 8 for domestic shipments in the United States. Zones measure the distance a shipment travels, with the point of origin located in Zone 1.

 

2. Weigh your packages and reduce dimensions

If you’re using too big of a box for a lightweight item, you will pay more than you should because of the space the package takes up. Larger boxes can lead to larger dimensional weight, which in turn will lead to more expensive shipping costs.

3. Find discounted supplies

Shipping companies such as USPS, UPS, and FedEx may provide small businesses certain boxes and envelopes for free or at a discount for certain packing supplies. You can also purchase packing supplies like boxes, dunnage, bubble wrap, airfill, and poly mailers in bulk to save money.

4. Switch from boxes to poly mailers

If you sell small, non-fragile products like clothing, shipping orders in a mailer envelope or poly bag can be far more cost-effective than boxes. The dimensions are smaller, taking up less room on a delivery truck, and using them also requires less packing supplies like tape and bubble wrap to save even more money.

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