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A Business’s Guide To Reducing Shipping Costs


A Business’s Guide To Reducing Shipping Costs

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Different challenges will arise as your company expands; one such challenge that a growing company faces is shipping. Suppose your business is experiencing rapid growth. In that case, you’ll have to handle a lot of logistical work.  

Shipping products can be challenging, and you must remember that every step of the fulfillment process incurs costs, including planning how the stock will be obtained, stored, packaged, and delivered.   

In today’s economy, e-commerce has become a force to be reckoned with. Its expansion has been extensive, as customers are no longer limited to a specific shop or two or three stores. But while e-commerce can benefit your business, shipping costs can be expensive. 

The cost of delivering commodities increases as you ship more of them. Prices also rise when demand grows while supply remains the same. Such supply-chain disruptions force businesses to raise commodity prices to cover shipping costs. As a result, your company may lose sales. 

Luckily, there are methods that you can apply to reduce shipping costs while maintaining the quality of your products and upholding the standards of your business. Below is a guide on how you can do so: 

  1. Find A Way To Reduce Transport Expenses 

The type of transport you use to ship your goods can raise the shipping costs. Therefore, it’s best to take your time and analyze all your options until you identify a mode of shipping that’s within your price range.  

When shipping goods to your clients abroad, you need to consider the export rates of the carriers. Remember also to factor in the type of shipping container to use.  

Shipping container sizes differ in length and width. For instance, there’s an XL 40ft Shipping Container, a 10-Foot Container, and a 20-Foot-High Cube. Many carriers are on the market, but you can benefit from the competition to bargain for a lower rate. 

  1. Consider How Big Or Heavy The Package Is 

Remember that weight is an important factor when deciding on a packaging type. It will cost more to ship a package if it’s heavy and takes up a lot of space.  

Even though delivering each package may only cost a small sum, remember that you’re shipping hundreds of them. You’ll see that you’re losing significant money if you add everything up. Therefore, use lightweight packing to reduce your shipping expenses and boost your profits. 

You can also implement the following methods to decrease package weight: 

  • Pack your products in corrugated boxes: They’re tough, and light compared to ordinary cardboard boxes and are used for e-commerce shipping. They have rows of tiny air-filled channels between their exterior and interior layers that protect your commodities. 
  • Use light packaging material: There are plenty of different packing materials, some of which are bulkier than others. Packaging paper and air cushions are some examples of lightweight alternatives to consider. The objective is to pack the goods tightly and lightly. 
  1. Take Advantage Of Flat-rate Shipping 

The rules and standards that guide shipping change regularly. Prices also fluctuate, making it difficult to keep up with them even though you want to ensure that shipping costs are as low as possible. But if you switch to flat-rate shipping, you can reduce your shipping expenses significantly. 

With flat-rate shipping, the shipping cost stays constant despite the commodity’s form, size, or weight. The main benefit of this method is that fluctuating costs are converted into fixed costs. If 20 objects are shipped within a stated weight parameter, it’s easy to establish the shipping cost. 

  1. Outsource Your Shipping Operations 

This alternative might be the ideal option. Outsourcing shipping, packing, and dispatching a customer’s order can help you save on shipping expenses. Getting the services of a third-party freight and dispatch company means you won’t have to worry about how the commodities will reach your customers.  

Outsourcing is an even more valuable option if sales increase significantly and there’s no time to evaluate transport charges or to reweigh the goods. 

Even though there are expenses that you’ll incur in hiring a third-party company to handle the shipping for your business, the costs will be very minimal compared to establishing your shipping hub.  

Additionally, third-party companies are experienced and have the capacity to bargain for low shipping charges from transporters since they dispatch huge volumes of goods for different companies. Ultimately, you’ll save much money that would otherwise have gone to product improvement. 

Final Thoughts 

Today, shopping for goods is fast and stress-free. Customers can shop from their homes and have their purchases delivered to their doorsteps. However, businesses are shouldering the burden of shipping these goods despite the rising shipping costs. But if you can implement the abovementioned strategies, you’ll save your business time and money when fulfilling client orders.