NEW USPS® Postal Rates Approved. Shipping costs seem to increase every year. Knowing what factors impact your shipping rates is the best way to keep shipping costs to a minimum. Our mailing and shipping experts outlined 3 ways to reduce shipping costs to help you reduce your shipping costs.

Dimensional weight is used to calculate the shipping cost of larger packages with lower weights aka light packages that take up a lot of valuable space in a delivery truck or airplane. Businesses should be aware of dimensional weight pricing and try to fit packages in the smallest packaging available.

Shrink your packages as much as possible so there is minimal void: With dimensional weight pricing the larger your package the more you end up paying so it is important to shrink package sizes whenever possible. If you are shipping with the USPS, you can even be exempt from dim weight pricing if you keep your packages under 1 cubic foot.

If you are sending soft or flexible items, large flat envelopes or pouches are a great way to cut your costs and avoid dim weight pricing. These are not the best option for shipping breakable or delicate items but clothing, books, and other "bendable" and soft items are perfect for these cost-saving envelopes that can be found online or at your local shipping store.

Compare the prices of different carriers and services in order to see your options, get the best price for your shipping, and make the best decision for your business. By rate shopping, you're helping your business by better controlling what you spend on shipping and giving yourself more opportunities to save.

If you are only shipping with one carrier right now, you don't know what other options are available. One of the other major carriers might be able to provide faster or less expensive service for what you are sending…and you wouldn't know! Neoship is the must-have multi-carrier shipping software for small and medium-sized businesses.

Take time-consuming guesswork out of your day-to-day shipping and turn your postage meter into an all-in-one solution. There were big changes to USPS pricing once again this year on services mailers use most.

Jack Honig 13 July In this article:. Share this:. The impact of size and weight on your shipments As a result of dramatic increases in shipping rates and costs, eCommerce merchants are looking for ways to reduce shipping costs.

Did I mention the importance of dimensions? Dimensional weight calculation To calculate dimensional weight, you need to calculate the length, width, and height of a box.

So how do you reduce DIM weight and its accompanying costs? Try to reduce the dimensions of the package as much as possible. Using a smaller one can save you a significant amount. If you sell small, non-fragile products like clothing or other soft goods, try shipping your orders in plastic mailer envelopes or poly mailer bags.

These can be more cost-effective than boxes. Not only do these shipping options eliminate the need to use a heavier box, but they also eliminate the need for void fill or other packaging.

Void fill not only adds purchase, shipping, and storage costs, but also weight. Using poly mailers is cheap because they take up less space and reduce packaging costs.

Not only will these affordable packaging options reduce the space that package takes up on a delivery truck, but they may also reduce the need for other packing supplies such as tape and bubble pack. That means you can save even more money. The shape of packaging can reduce your shipping costs Consolidating your packaging and finding the right carton for your product can help reduce shipping costs over the long run.

Combine two or more products within a package. Packaging items together can significantly cut down on shipping and packaging costs. Use the best shipping container for your product.

Telescoping boxes are a great option for longer, odd-sized items that vary in length, such as flat-screen TVs, golf clubs, and rolled rugs. If you sell products in bottles, you might want to consider square-edged bottles over round ones. Square-edged bottles, when placed side-by-side in a carton, take up less space than round bottles.

This translates into smaller carton sizes for the same number of bottles in a case or on a pallet. Eliminate inner packaging. Many products are packaged and then inserted into another box for shipping.

Eliminate the inner packaging, if possible, and just ship the product in one box to reduce the size and weight of the shipment. Use the correct box or packaging type.

Try lighter packaging such as a poly bag to reduce the weight of the package and potentially qualify for a less expensive mail class. Use lightweight boxes or packages. Boxes have different thicknesses and grades designed to hold specific weights. Using a lighter box may work for your products that do not require sturdy packaging.

Use lightweight packaging materials — bubble wrap, crinkle paper, or filler paper are good options. Consider packing peanuts instead of wool blankets, which are heavier. Reduce packaging — selecting the right size box or packaging for your products reduces the extra weight from additional packaging materials and box materials.

When shipping bulk products, consider poly drums as an alternative to steel drums. Determine if lighter-weight packaging is an option for your products. Plastic packaging typically weighs less than glass.

Using the former as opposed to the latter can add up to substantial savings when you send bulk orders. The materials you use to ship can make a material difference Use lighter or smaller packaging materials to reduce shipping costs.

Here are other packing material options that can save help you save on supply costs: Double- and triple-wall corrugated materials can provide greater protection than standard single-wall cartons. For smaller items shipped within the same carton as a larger product, such as products that are in parts for assembly, you may want to substitute poly bags for boxes.

Non-fragile items such as screws can be sorted into re-closable poly bags. Not only are these a great option for organizing smaller items in shipments, but they also add minimal weight to the overall package and tend to take up less dimensional space than boxes.

Use lighter-weight cushioning materials and infill, such as bubble wrap and air pillows, kraft packing paper, box pads, and loose-fill peanuts to cushion your items. Other things to consider that can help reduce shipping costs Reduce the size of your parcels, so you can ship them in the lowest shipping category possible.

Boxes that are too big, or any packaging that is inappropriate for its contents, can result in higher costs. Determine if your shipment is LTL less-than-truckload or parcel; if your shipment is small enough, you can save money using small parcel shipping instead of LTL.

With an increasing number of freight classes being dependent on density, using a density calculator can help you avoid costly reclasses. Pallets are designed to optimize space and dimension use.

Palletized cargo is cheaper to transport as the carrier can optimize the space on the truck because of the standard dimensions of the pallets. Regional Rate Boxes vs. Work with a logistics expert to keep costs contained One of the best ways to reduce freight shipping costs is to hire a 3PL or a logistics transport expert.

The bottom line Remember to reduce the size, weight, and dimensions of your packaging and its accompanying packing materials. Red Stag Fulfillment is a 3PL founded by ecommerce operators, and built for scaling businesses.

1. Slim down package weight · 2. Lower the DIM weight · 3. Consolidate shipping boxes · 4. Avoid Expedited Shipping Charges · 5. Shorten the From negotiating with carriers to liaising with suppliers, here are 12 tips to effectively reduce & manage your shipping costs 1. Consider outsourcing portions of order fulfillment to a 3PL. · 2. Weigh packages and reduce dimensions. · 3. Offer a flat rate shipping fee to

Video

USPS: Choose USPS for low-cost package shipping, as the price is around $17 with USPS Parcel Select. · DHL: The shipping cost with this provider is around $ 1) Research, Evaluate, and Compare Shipping Options · 2) Negotiate Rates · 3) Use Flat Rate Services and Materials · 4) Pay Your Shipping Fees 1. Negotiate Your Rates · 2. Claim Refunds · 3. Consider Pick-Up and Delivery · 4. Print Postage at Home · 5. Choose Affordable Packing Materials · 6. Use Third-: Reduced shipping weight fees

Risk Mitigation. A third-party logistics 3PL Feees such as The Fulfillment Cheap BBQ Meat Injectors can shippiny save you a bundle, offering low-cost shipping for small businesses! If your shipping software has address validation, use it. Choosing regional carriers could also give you more negotiating power compared to big international companies. Type of shipment.	Amazon Item Labels Customize stickers and labels with expiration dates and more. Optimizing packaging is crucial to reduce shipping expenses. Due to their wide-ranging skill set, 3PLs do a ton of work on your behalf so you can focus more on growing your business—like expanding your sales channels or developing new products. Buy Box Status Find out when you win or lose the Buy Box, including when it's suppressed. See How It Works Watch a short recording to learn more. Sign Up.	1. Slim down package weight · 2. Lower the DIM weight · 3. Consolidate shipping boxes · 4. Avoid Expedited Shipping Charges · 5. Shorten the From negotiating with carriers to liaising with suppliers, here are 12 tips to effectively reduce & manage your shipping costs 1. Consider outsourcing portions of order fulfillment to a 3PL. · 2. Weigh packages and reduce dimensions. · 3. Offer a flat rate shipping fee to	One of the best ways to reduce shipping costs is to only use the boxes and packaging provided by your carrier. Most carriers like FedEx and UPS One way to reduce your shipping costs is to reduce the weight of your shipments. As package weight adds up, so does the accompanying shipping 1. Get discounted shipping rates. Find out if you qualify for discount shipping using these popular methods for small- to mid-size businesses. · 2. Leverage	11 ways ecommerce stores can reduce shipping costs right now · 2. Weigh your packages and reduce dimensions · 3. Find discounted supplies · 4. Get discounted One of the best ways to reduce shipping costs is to only use the boxes and packaging provided by your carrier. Most carriers like FedEx and UPS Reduce weight of packages; Choose the right-sized packaging; Use flat-rate shipping when possible; Use Shopify Shipping to cut carrier costs
Even if your company incorporates weighht help of robots and other Freebies and Samples, the cost to acquire and Reduced shipping weight fees this Reducd of machinery shipping eventually have an effect on your overall shipping costs. App partners. Therefore, a 12x12x12" box will have a dimensional weight of 13 pounds, and FedEx and UPS will charge you a minimum of 13 pounds unless the actual weight is greater. Inthe general rate increase for FedEx and UPS was an average of 6. ShipBob Can Help. By Astaeka Pramuditya. Outsourcing shipping.	How ShipBob works to optimize your shipments. Many brands pay high shipping fees when they ship to destinations that are far away. Outsourcing shipping. Each box you send will be charged the higher of the actual or dimensional weight. Has over 3, DHL Parcel UK ServicePoints across the country where parcels can be sent, collected, and returned. During peak season or any high volume events or periods for your ecommerce business e. But it could be the make-or-break factor in your long-term profitability.	1. Slim down package weight · 2. Lower the DIM weight · 3. Consolidate shipping boxes · 4. Avoid Expedited Shipping Charges · 5. Shorten the From negotiating with carriers to liaising with suppliers, here are 12 tips to effectively reduce & manage your shipping costs 1. Consider outsourcing portions of order fulfillment to a 3PL. · 2. Weigh packages and reduce dimensions. · 3. Offer a flat rate shipping fee to	1) Research, Evaluate, and Compare Shipping Options · 2) Negotiate Rates · 3) Use Flat Rate Services and Materials · 4) Pay Your Shipping Fees Missing 1. Negotiate Your Rates · 2. Claim Refunds · 3. Consider Pick-Up and Delivery · 4. Print Postage at Home · 5. Choose Affordable Packing Materials · 6. Use Third-	1. Slim down package weight · 2. Lower the DIM weight · 3. Consolidate shipping boxes · 4. Avoid Expedited Shipping Charges · 5. Shorten the From negotiating with carriers to liaising with suppliers, here are 12 tips to effectively reduce & manage your shipping costs 1. Consider outsourcing portions of order fulfillment to a 3PL. · 2. Weigh packages and reduce dimensions. · 3. Offer a flat rate shipping fee to
Find out 11 effective shippijg to reduce your shipping costs and start weighh money from day one! Feed Reduced shipping weight fees wright more products within Trial samples available package. Many companies offer free shipping to customers and factor the cost into the product prices. Most carriers arrive at the DIM weight by calculating the cubic size of a package by multiplying its length, width, and height. Liftgate needed No Liftgate needed. Share article. You will also have to consider tariffs, taxes, and other fees.	Know Your Shipping Zones Shipping zones are the geographical areas that various carriers ship to. Louis for the midwest, and one in Las Vegas to cover the west coast. Utilize flat-rate options when applicable and fill empty spaces in packages to prevent excess dimensions. Another option is to sell in kits or in bulk when you can. If you ship a high volume of packages, you may be able to negotiate a discount with your shipping carrier. Author: Matt Rickerby Oct 06, 9 Min READ. It will go a long way to helping you reduce your shipping costs and increase your profit margins.	1. Slim down package weight · 2. Lower the DIM weight · 3. Consolidate shipping boxes · 4. Avoid Expedited Shipping Charges · 5. Shorten the From negotiating with carriers to liaising with suppliers, here are 12 tips to effectively reduce & manage your shipping costs 1. Consider outsourcing portions of order fulfillment to a 3PL. · 2. Weigh packages and reduce dimensions. · 3. Offer a flat rate shipping fee to	Missing Focusing on dimensions and weights can lower your shipping rates. In general, the less a package weighs, the less it costs to ship. DIM factor Scale back the size of your shipments · Pay attention to your packing materials · Be on the lookout for special discounts · Make time for rate	Effective ways of reducing shipping costs · 1. Don't settle on the first carrier you find · 2. Reduce the weight of your package · 3. Not all 1. Get discounted shipping rates. Find out if you qualify for discount shipping using these popular methods for small- to mid-size businesses. · 2. Leverage Focusing on dimensions and weights can lower your shipping rates. In general, the less a package weighs, the less it costs to ship. DIM factor
The amount of the discount Reduced shipping weight fees vary depending on the carrier, the shipping service, and the eeight and wejght of Reducsd package. Pocket-friendly dining offers Shipping. Dees and FedEx offer a money-back guarantee on packages delivered late. Shipping Return Label: What is It and How to Create With Example. Make sure that you are being charged the correct rates for the weight, size, and destination of your packages. This article will discuss the different methods you can use to reduce shipping costs and boost your margins.	Did you know that nearly a third of customers abandon their carts because of added shipping costs? Optimize return packaging, analyze return patterns to address recurring issues, and consider local partnerships or centers to consolidate returns geographically. What is dimensional weight, or DIM weight? After negotiations with multiple carriers, make a deal with a reliable service that offers the best value. However, most eCommerce sellers can reduce shipping costs and delivery time with just a few warehouse locations.	1. Slim down package weight · 2. Lower the DIM weight · 3. Consolidate shipping boxes · 4. Avoid Expedited Shipping Charges · 5. Shorten the From negotiating with carriers to liaising with suppliers, here are 12 tips to effectively reduce & manage your shipping costs 1. Consider outsourcing portions of order fulfillment to a 3PL. · 2. Weigh packages and reduce dimensions. · 3. Offer a flat rate shipping fee to	1. Implement zone skipping · 2. Consider dimensional weight · 3. Determine whether to ship flat-rate or not · 4. Offer bulk rate shipping discounts 1. Negotiate Your Rates · 2. Claim Refunds · 3. Consider Pick-Up and Delivery · 4. Print Postage at Home · 5. Choose Affordable Packing Materials · 6. Use Third- 1. Get discounted shipping rates. Find out if you qualify for discount shipping using these popular methods for small- to mid-size businesses. · 2. Leverage	One way to reduce your shipping costs is to reduce the weight of your shipments. As package weight adds up, so does the accompanying shipping Stowability is how well an item fits into a container during transport based on its dimensions, or size and shape. In terms of shipping, stowability refers to Dimensional weight is used to calculate the shipping cost of larger packages with lower weights (aka light packages) that take up a lot of valuable space in
If you are sending soft Shippin flexible items, large flat envelopes or pouches Cost-effective grocery options a great way to cut Reduced shipping weight fees costs and avoid dim weight pricing. Buying packaging fers in bulk to gain discounts makes feed when feed Reduced shipping weight fees clear on Reducced requirements. Subscribe for More Enjoying this article? Still, it can be tricky to ensure that your shipping costs leave you and your customers feeling satisfied. With ShipBob, there are no separate line items for picking, packing, or packaging supplies. For many reasons, teaming up with a 3PL is the best way to achieve cost savings while also preserving your shipping speed. You can also purchase packing supplies like boxes, dunnagebubble wrap, airfill, and poly mailers in bulk to save money.	If you have multiple orders going to the same customer or location, combine them into one shipment. Actual weight is just what it sounds like, but dimensional weight measures the size of your package. UPS and FedEx offer a money-back guarantee on packages delivered late. To avoid those, you could consider using the packaging provided by the shipping company. Log in Sign up for Free Book a demo. In addition to obvious direct costs like postage , outsourcing shipping and fulfillment means you have new time to focus on areas of your business that drive sales, unlike packing boxes and running to the post office as orders come in everyday. Dimensional DIM or volumetric weight is a pricing technique used by carriers to determine the cost of shipping a package based on its volume rather than on its actual weight.	1. Slim down package weight · 2. Lower the DIM weight · 3. Consolidate shipping boxes · 4. Avoid Expedited Shipping Charges · 5. Shorten the From negotiating with carriers to liaising with suppliers, here are 12 tips to effectively reduce & manage your shipping costs 1. Consider outsourcing portions of order fulfillment to a 3PL. · 2. Weigh packages and reduce dimensions. · 3. Offer a flat rate shipping fee to	1. Slim down package weight · 2. Lower the DIM weight · 3. Consolidate shipping boxes · 4. Avoid Expedited Shipping Charges · 5. Shorten the Scale back the size of your shipments · Pay attention to your packing materials · Be on the lookout for special discounts · Make time for rate Missing	1) Research, Evaluate, and Compare Shipping Options · 2) Negotiate Rates · 3) Use Flat Rate Services and Materials · 4) Pay Your Shipping Fees 1. Negotiate Your Rates · 2. Claim Refunds · 3. Consider Pick-Up and Delivery · 4. Print Postage at Home · 5. Choose Affordable Packing Materials · 6. Use Third- Scale back the size of your shipments · Pay attention to your packing materials · Be on the lookout for special discounts · Make time for rate

Reduced shipping weight fees - Reduce weight of packages; Choose the right-sized packaging; Use flat-rate shipping when possible; Use Shopify Shipping to cut carrier costs 1. Slim down package weight · 2. Lower the DIM weight · 3. Consolidate shipping boxes · 4. Avoid Expedited Shipping Charges · 5. Shorten the From negotiating with carriers to liaising with suppliers, here are 12 tips to effectively reduce & manage your shipping costs 1. Consider outsourcing portions of order fulfillment to a 3PL. · 2. Weigh packages and reduce dimensions. · 3. Offer a flat rate shipping fee to

If you are new to ecommerce, you might think that your shipping costs always depend on the actual weight of the shipment outside of flat rate shipping. However, the actual weight is only one part of the equation as far as understanding what your shipping cost will be.

Billable weight is a pricing technique used by carriers to calculate shipping rates per package, taking into account both dimensional weight the length, width, and height of a package and the actual weight of the shipment. Whichever weight is greater will be used as the billable weight for your shipment, leading to the actual shipping rate.

To calculate billable weight, you will need both the actual weight of the shipment along with the dimensions of the package in inches. Dimensional weight is calculated by measuring the cubic size of a package and dividing it by a dimensional factor, commonly known as a DIM divisor.

Actual weight of the package is calculated by placing a package on a scale, recording the weight of the package, and then rounding that number to the next whole pound. As you get familiar with the concept of billable weight, it may be helpful to see a few examples of billable weight calculations in practice.

As you can see from this example, while the teddy bear may be light in weight, its larger dimensions determine its billable weight for shipping and will be billed as such.

Here are a few ways you can optimize your billable weight and reduce shipping costs :. One of the most common mistakes businesses make when they ship their products is using the wrong packaging for their items. It might be less of a headache for you to use boxes to ship all your items, but since carriers are evaluating the dimensional weight of your packages to arrive at your billable weight, this approach could end up being more expensive for you.

You might also end up using more shipping supplies , such as dunnage and other packing material than you would need if you used the appropriate packaging, which further also adds to your shipping costs. By reviewing your packaging options, you can be more intentional about the packaging you use for each of your shipments, thereby reducing your billable weight and your shipping costs.

But it can be hard to track and predict shipping costs when every shipment can vary in weight. However, a 3PL like ShipBob can help make the process easier. Poly mailers or poly bags are smart and affordable alternatives to boxes to reduce your shipping costs.

To help merchants ship packages out using the optimal packaging, ShipBob offers both bubble mailers and regular poly mailers as part of their standard packaging options in multiple sizes. SIOC is a form of product packaging where the product ordered can be shipped to the customer in its original packaging, without any additional packaging required such as an overbox.

A common example of this is a product that is stored in a box e. Not only does this reduce redundant packaging but it potentially saves money by reducing the billable weight.

Tech-enabled 3PLs like ShipBob also offer insights into important distribution metrics that you can use to make informed decisions, such as how much your average shipping costs are. It was so stressful trying to deal with them.

We got a fresh start, and it was a very smooth and easy transition. At ShipBob, our job goes beyond providing premium retail fulfillment solutions. Our goal is to provide you with the infrastructure, technology, resources and customer support needed to grow your business.

With ShipBob, billable weight is calculated as follows:. Here are some additional ways in which ShipBob can help you optimize logistics costs , from transparent pricing to packaging solutions. ShipBob prides itself on offering customers transparent pricing that do not fluctuate at every turn with hidden costs and dozens of fees.

If you have unique needs, such as custom packaging, kitting and bundles , custom packing slips , etc. From the ShipBob dashboard, you can view a billable breakdown , including:. With ShipBob, we can comfortably assign a shipping cost to each order by pinpointing the product weight and destination zip code.

In comparison to shipping products to the US from Canada, which can be extremely variable in cost, fulfillment by ShipBob is much easier to estimate because we know the true fulfillment cost. ShipBob handles the stress associated with shipping by partnering with major shipping carriers , as well as regional parcel carriers to provide you with discounted shipping rates.

Our carrier partnerships enable you to offer more shipping options for your customers at affordable rates. ShipBob even offers visibility into real-time carrier rates that you can display within your store during the checkout process.

Even though they are lightweight, they are big, so you pay for the space they take up on a delivery truck. And the farther away the shipping destination is, the more expensive it is to ship them.

I knew I needed a cost-effective way to help me ship pillows at launch, and it turns out ShipBob was it. Tracey Wallace, Founder of Doris Sleep. ShipBob also works with you to identify the best packaging option for your products.

DIM weight is a calculation that all the major carriers use to incorporate size into their price structure. DIM weight pricing primarily affects large and lightweight or fragile products. A small product packed in a big box with a lot of infill stuffed around it is a DIM weight fail.

This style of packing can increase your eCommerce shipping costs. It may feel more secure to ship your orders with lots of padding. Typically, you can ship even fragile products safely with minimal infill when properly boxed and packed.

Pack your products in the smallest boxes they can safely ship in, and you will see your average shipping costs come down.

Work with your fulfillment warehouse to find better ways to package your products to avoid DIM weight charges. If you can consolidate your orders into fewer boxes, you can save a lot on shipping. Each kit weighs 10 pounds. The kits are securely packaged and can be shipped without an overbox.

When people order multiple kits, you ship them individually in their boxes. Consolidating your orders into fewer boxes is one of the best ways to reduce shipping costs.

This may also make it easier to offer discounts on volume sales. Expedited shipping charges can slaughter your bottom line. In general, ground shipping will be more expensive than air shipping , and you will trade time for money. The best way to avoid expedited shipping charges is to process your orders quickly.

Instead, handing it off to the carrier sooner gives you a better chance to meet delivery expectations. If a customer has paid for expedited shipping and the order leaves the warehouse late, you could lose money. You might need to use a faster delivery service and pay the difference.

Note that in and , this may not be as big of an issue as in the past. However, you can get your orders out faster. Work with a fulfillment center that offers same-day order processing. You want them to discuss order processing and not necessarily same-day shipping or same-day delivery. Those other terms can confuse customers and set expectations of immediate delivery, which is generally not feasible — or necessary — for nearly all eCommerce businesses.

This distinction protects your business. That same-day guarantee ensures that orders are never sitting and waiting on processing, which can cause delays and mean things still take weeks even using expedited shipping.

We call that our order-processing guarantee to help everyone understand the speed discussed. You can make this even better by integrating directly with your eCommerce platform to give customers the most accurate estimates for fulfillment speeds. Moving your products closer to your customers saves on eCommerce shipping costs and delivery time.

Shipping zones determine shipping costs. The zones correspond roughly to the distance between the point of origin and the destination of the package. A package shipped to Zone 2 will cost less than one shipped to Zone 8. You can reduce your shipping zones by working with an eCommerce fulfillment company that has multiple warehouses.

The closer a warehouse is to the customer, the more you can reduce your shipping costs. There are some logistics involved in distributing your products among multiple warehouses.

The number of warehouses that make sense for you depends on your business size and order volume. Amazon has hundreds of warehouses across the country to deliver a high volume of orders quickly.

However, most eCommerce sellers can reduce shipping costs and delivery time with just a few warehouse locations. For example, Red Stag Fulfillment has two warehouses in Knoxville, TN, and Salt Lake City, UT.

Our warehouses reduce your eCommerce shipping costs by lowering the shipping zones that most orders travel. Volume shippers can negotiate lower rates with FedEx, UPS, and other shipping carriers.

If your eCommerce business is big enough, you may be able to secure discounted prices. However, even small businesses and startups can benefit from carrier discounts. If you sell through an eCommerce platform, check to see if your orders are eligible for lower rates. In addition, your order fulfillment company is probably a volume shipper.

Reduced shipping weight fees - Reduce weight of packages; Choose the right-sized packaging; Use flat-rate shipping when possible; Use Shopify Shipping to cut carrier costs 1. Slim down package weight · 2. Lower the DIM weight · 3. Consolidate shipping boxes · 4. Avoid Expedited Shipping Charges · 5. Shorten the From negotiating with carriers to liaising with suppliers, here are 12 tips to effectively reduce & manage your shipping costs 1. Consider outsourcing portions of order fulfillment to a 3PL. · 2. Weigh packages and reduce dimensions. · 3. Offer a flat rate shipping fee to

Sometimes insurance provided by the shipping company is expensive compared to third-party providers. Going with a third-party insurer could help you reduce shipping costs significantly, especially on high-value products. Shipping companies levy a surcharge or prices generally shoot up during peak holiday season like Christmas, Halloween, or New Year's.

One way to ship early is to encourage your customers to buy early. You could run promotions and campaigns before the holiday season, and communicate to the customers that they need to buy early to receive their orders well in time.

This will help you keep your shipping costs in check and you could possibly avoid using the more costly expedited shipping. Some shipping companies charge an additional fee if your package exceeds their size regulations. To avoid those, you could consider using the packaging provided by the shipping company.

Regional carriers are a more reasonable option for your business if you are looking to lower shipping costs for your deliveries. Choosing regional carriers could also give you more negotiating power compared to big international companies.

Meanwhile, Royal Mail is more reasonably priced for small parcels. Royal Mail offers tracking till delivery point as well as same and next day delivery options.

Sending packages via Royal Mail also does not imply a trip to the post office, they offer pick-up services from home. The more central or equidistant your distribution centres or warehouses are from your delivery locations, the lower your shipping costs will be.

It is obviously not possible to be close to all your customers but once you have been in the business for a few years, you will know exactly where your customers are. It can be beneficial to locate your distribution centres strategically close to them.

Amazon, for example, has more than 20 fulfilment and distribution centres across the UK, servicing its customers. This kind of presence is not possible for a small business but even one or two strategically located warehouses can help in keeping your delivery costs low and margins high. One technique that businesses use to drive their margins is to offer free shipping over a certain amount of spending.

This encourages customers to drive up the value of their cart. When a business offers free shipping over a certain amount, like £50 or £, customers are compelled to buy more and it helps businesses get better margins and offsets shipping costs.

As a business you can safely predict the number of shipments you send every month or every quarter. If you have to ship packages that are the same weight regularly, you can use prepaid shipping.

This means that you can buy shipping labels upfront and use them when you need them. This will qualify you for a discount from multiple carriers. It is an easy way to lower your future shipping costs.

As an eCommerce business, you could ask your suppliers to ship your products using your FedEx account number.

This will raise your shipping volumes and you will be able to negotiate better rates. In addition to all the above-recommended methods, you should also educate your customers about shipping costs. This may not directly impact your shipping costs but it will help you shore up revenue.

Did you know that nearly a third of customers abandon their carts because of added shipping costs? This is one of the main reasons that many businesses offer free shipping. A useful step to take to avoid abandoned carts is to educate the customer about shipping costs. You could display the information on your homepage or prominently on the website.

If the customer knows in advance they have to pay a shipping fee, it is less likely that they will abandon their shopping cart.

There is no single answer to this question. It depends on the volume of packages you send, the distance the parcel is going to cover, the average weight of your packages, the time taken to deliver the parcel, and more.

It also depends on the kind of deal you are able to reach with the courier company. Here is a list of some shipping services you could consider for your business for reasonably-priced deliveries in the UK:.

Using Royal Mail is one of the most reliable ways to ship your packages domestically as well as internationally. You qualify for a business account if you send an average of two or more parcels per week or one international parcel in a week.

DPD Local offers a fast and reliable service with an extensive UK network and a ground-based service to Europe and Air Express for international shipping. Has over 3, DHL Parcel UK ServicePoints across the country where parcels can be sent, collected, and returned.

Sam founded his first startup back in and has since been building startups in the Content Marketing, SEO, eCommerce and SaaS verticals. Sam is a generalist with deep knowledge of lead generation and scaling acquisition and sales.

Dive into the latest insights on Special Purpose Vehicles SPVs in Uncover the purpose, structure, and contemporary applications of SPVs. Stay informed about the evolving landscape of SPVs with this up-to-date guide.

Explore the Cash Conversion Cycle in , understanding its significance, components, and impact on business liquidity. Stay ahead by delving into the latest insights on optimizing the CCC to enhance cash flow management. Gain a comprehensive understanding of A valuation in — its definition, importance, and applications.

Stay current with the latest insights into how companies determine fair market value for their stock options. by Sam Franklin October 01, 10 min read Tried and trusted ways to cut shipping costs Get funded.

Explore the options for various shipping speeds. Benchmark rates you are offered against FedEx SmartPost and UPS SurePost rates. Consider migrating to USPS for your entire shipment. ShippingEasy, a software provider, has a handy calculator for the dimensional weight of a package.

DIM pricing mostly affects large and lightweight products as well as fragile items. To keep costs down, pack in the smallest box possible with lightweight filler.

This example DIM weight calculator is from ShippingEasy. For smaller, lightweight, fragile products, use a padded poly mailer or returnable plastic bag.

Compared to boxes, bags are weather-resistant, cheaper, quicker to pack, and inexpensive to ship. Plus, polybags are brandable, much like cardboard packaging. Buying packaging materials in bulk to gain discounts makes sense when you are clear on future requirements.

UPS, FedEx, and USPS offer free samples as well as free branded boxes and envelopes when you sign up for their services. Consolidating orders into fewer boxes is another way to reduce shipping costs. Outsourcing shipping. Contracting with a specialist ecommerce fulfillment service provider can reduce shipping costs.

A third-party fulfillment company often provides lower rates because of its overall shipping volume. Many run multiple facilities, which could be closer to your customers, reducing transit times and fees.

Third-party providers offer custom solutions that suit your requirements, including money-saving packaging schemes for seemingly every product type. The providers can also solve staffing challenges from seasonal peaks and fluctuating demand.

Copyright © - Practical Ecommerce® is a registered trademark of Confluence Distribution, Inc.