Make It a Priority. However, the tradeoff is often a slower delivery.Note: There are specific volume, weight, and dimension requirements. As a specialist in shipping and mailing, Pitney Bowes set out to see what challenges small online retailers faced when it came to mailing orders out to customers. This is where multi-channel shipping can help your small business. Before we dig deep here are 10 super fast top tips on how you can reduce shipping costs right now! },{ The cost of shipping a package in many cases depends on how much space it takes up in a truck or airplane. Negotiating rates. You don’t need to affix them to a box until the individual order needs to go out. We utilize ShipStation to ship over … Once a year or so, I sit down and review all my shipping costs. Even though we’re located near their fulfillment center in the Northeast, it’s actually more advantageous for us to ship from elsewhere. “One of the ways that you can offer free shipping is to build shipping into the price of your product. Our search engine conveniently sorts the shipping … If your business sells physical products, you will find it challenging to reduce online shipping costs. Many of these smart decisions will become second nature and eventually work their way into all of your business decisions. Only 2.5% of online shoppers rated fast shipping as important to their purchase. Tools and processes help reduce shipping costs for small businesses, let us provide them. Look Into Different Carriers. How to Reduce Shipping Costs. Ecommerce store owners should seek lower shipping costs, as long as the service for the lower costs does not affect the shipping solutions or extend delivery times. In fact, unless a customer specifically needs it and is willing to pay for it, overnight delivery should not be a part of your free shipping strategy. Nearly everything’s negotiable, and shipping costs are no exception. Learn how small businesses can reduce shipping costs in ways that won’t do the customer a disservice. Also known as Warehousers, these companies can save you 35-40% on shipping costs. The strategy enables you to offer “free” shipping while recovering the costs of … "@context": "https://schema.org/", Free shipping can also be limited to domestic orders within your native country so that you can avoid overspending on international shipping rates. You can present shoppers with two scenarios where they would pay the same total price, yet they would abandon their cart for the one that has a higher shipping cost. "image": "https://www.shipbob.com/wp-content/uploads/2019/05/iStock-943022616.jpg", As they seek to reduce shipping costs, e-commerce small business owners still are expected to provide fast, high-quality service. Check out offers from the platform(s) or marketplace(s) you sell on" "step": [{ This not only saves costs but time as well.Note: This really only works when you consistently ship orders containing the same weight and dimensions or know this information ahead of time to ensure accurate shipping costs. You can also purchase packing supplies like boxes, dunnage, bubble wrap, airfill, and poly mailers in bulk to save money.Don’t let the higher investment upfront scare you off — you won’t run out right away and you’ll also reduce your average per-shipment cost. Note: There are specific volume, weight, and dimension requirements. Understanding patterns in shipping destinations can help to identify where you should be shipping from. "image": "https://www.shipbob.com/wp-content/uploads/2019/05/iStock-943022616.jpg", Here are five strategies that will help you create a shipping plan that works for your business. The psychology of online shopping and consumer preferences is fascinating. ", Get discounted shipping rates" Decrease the shipping distance" Small businesses and ecommerce companies are under increasing pressure as shipping prices continue to rise. 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. The influence of shipping costs on purchase habits is sizable. There are many ways to reduce your shipping costs. Shipping is one of the top 3 costs for most e-commerce companies, and it can be tricky to optimize it to save money month over month. The farther away the shipping destination is, the higher the zone and more expensive and slow it is to ship. 1. You may even find some free shipping supplies. },{ Shift the Cost to Consumers Adding shipping costs to the price of a product is another way to reduce small business shipping costs. Articles Related to Reducing Shipping Costs. Bulk Purchasing Comparing carrier options for every single order can take a lot of time if you do it manually. Pick-up vs. drop off. 8 Ways to Reduce Shipping Costs as a Small Business. So, how do ecommerce businesses reduce shipping costs and improve their margin? If you’re shipping more than 100 orders per month, you may be able to negotiate shipping rates … Switch from boxes to poly mailers" Using a shipping platform that is online works well for ecommerce companies whose businesses are mostly online already. “From expanding into a second ShipBob fulfillment center, we are excited to be able to offer 65% of our customers with 2-day shipping, up from 32% by only having a single West Coast facility. You can also purchase packing supplies like boxes, dunnage, bubble wrap, airfill, and poly mailers in bulk to save money. Combined with an increasingly competitive online marketplace and evolving carrier price structures, high business shipping costs present serious challenges to profitability—creating the need for small and medium-sized eCommerce companies to find new ways to reduce shipping-related expenses. Of course, the more packages you ship, the better rates you can get. Otherwise, your business will never thrive. Customers are more eager to spend money on themselves than on shipping carrier fees. Shipping is the black sheep of every online seller. "@type": "HowToSupply", Use 3rd party insurance. Packaging: Depending on what you ship, packaging can be a significant cost for small businesses. There are many ways to reduce your shipping costs. They may have features that provide, One way to save on shipping costs is to cut extra services, which, depending on the value of the product you’re shipping, could be. "image": "https://www.shipbob.com/wp-content/uploads/2019/05/iStock-943022616.jpg", All shipping companies have pricing discounts available based on shipping volume, and you don’t have to be shipping hundreds of thousands of orders a month to get these discounts. "text": "Unless you’re using flat-rate shipping, heavier packages cost more to ship. Negotiate. "name": "5. As long as they’re getting a perceived deal or the best value, they are more likely to buy. Small businesses and ecommerce companies are under increasing pressure as shipping … Use packaging provided by your carrier. Online sales are no exception. © Copyright 2020 ShipBob, Inc. All Rights Reserved. }. "image": "https://www.shipbob.com/wp-content/uploads/2019/05/iStock-943022616.jpg", "name": "9 ways to reduce shipping costs right now", The packaging cost of a retail product could be affected by several factors that directly imparts in it. 1. If you can eliminate shipping to higher zones, you can save a lot of money over time — more on partnering with companies that have multiple fulfillment centers shortly! Not all of the tips above are going to be applicable to your business or improve your bottom line. "@type": "HowTo", How to Reduce Your Business Shipping Expenses: 1. There are endless strategies you can try to implement to help save on your bottom line, but here, we are specifically going to focus on your shipping for small business costs. Although you might not be able to offer free, two-day shipping, there are some changes you can consider making in your current operations to help you reduce shipping costs. "name": "7. There are cards specifically designed for business owners that offer great rewards like cash back, discounts, and maybe even points that you can put towards business-related travel. If you ship goods overseas, you can reduce international shipping costs by using a third party logistics company. 2-day shipping) is more economical than time-definite service (e.g. ShipStation is one of the most commonly used shipping solutions, perhaps due to its wide range of integrated software. "@type": "HowToStep", They may have features that provide real-time carrier rates, shipping apps, built-in features, and integrations with fulfillment software that can provide you with better rates and fulfillment services. This is important if you offer free shipping, as the money saved can be reinvested into growing your small business. Start saving on shipping fees today. Because shipping and handling fees are now a key element in the buying decision process, Upela helps you build a sustainable business model by comparing the shipping rates to always get the cheapest price for the best service. When you have more time, day-definite shipping service (e.g. 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. If you’re shipping to customers throughout the country or even internationally, base your business shipping costs on the most accurate information you can get. 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.”, Greg MacDonald, CEO & Founder of Bathorium. Saving money on shipping supplies may or may not be beneficial to your business. Whether you are shipping heavy or light, far or near, these ideas can help reduce your shipping prices and increase your profits starting today! Shipping orders can be expensive. Darren Schreher, Digital Manager for INTO THE AM and iHeartRaves shared with me his experience with ShipStation: . Weigh your packages and reduce dimensions" They need help reducing shipping costs. Things like boxes and bubble wrap can often be reused many times over. Not only is this better for our customers but we also gain a 13% savings to our bottom line.”, Pablo Gabatto, Business Operations Manager at Ample Foods. Now, we can comfortably assign a shipping cost to each order by pinpointing the product weight and destination zip code. You can also use multiple ShipBob facilities to efficiently reach even more customers. Here are 17 ways to cut your mailing and shipping costs and get more mileage out of the money you do spend on mail and shipping. }] Small businesses and ecommerce companies are under increasing pressure as shipping … There are over 75 charges that could apply to each of your shipments, including Saturday delivery fees, fuel surcharges, and signature fees. ", Having the right strategy in place helps you reduce shipping costs and ultimately grow your business. 2 nd business day by 10:30 a.m.). Companies like ShipStation and Stamps.com have free trials for small businesses managing shipping themselves. },{ ShipBob provides inventory management, warehousing, and other ecommerce fulfillment services, and also helps brands compete with big retailers. "@type": "HowToStep", Compare Packaging. This can cut costs as much as 50% in some cases. Free shipping has become the standard for online sales. We utilize ShipStation to ship over … When you’re a small business, you have to keep operating costs as low as possible. 3) Make sure you have a solid back end system for importing shipments (time is money!) Additional Tips on How to Cut Shipping Costs for Small Businesses In case you are not delivering thousands of bundles per day, most likely you get into the group of smaller business shipper. 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. Every year our shipping rates increase, but it seems like the big guys get deeper shipping discounts. "text": "One way to save on shipping costs is to cut extra services, which, depending on the value of the product you’re shipping, could be shipping insurance. If you’re shipping a package, your shipping rate can be affected by the package’s dim weight. Small business shipping has become a cost management focus for eCommerce brands. For domestic orders, you can’t control or always predict shipping destinations, but you can control where you fulfill orders from. Although you might not be able to offer free, two-day shipping, there are some changes you can consider making in your current operations to help you reduce shipping costs. Use online shipping. Learn more about small business shipping and how the right tools can help you reduce shipping costs. Costs can vary widely — as can the amount of time and investment it takes to ship the same package. As a result, ShipBob customers have experienced an 18% reduction in cart abandonment rate and a 97% increase in their average order value. "text": "Prepaid shipping can get you up to 20% off shipping costs from UPS and FedEx simply by purchasing a certain number of shipping labels upfront. If you want to offer free shipping, there are some conditions you can put in place to keep shipping costs under control. Remember, it’s always better to create a return customer than to leave a bad impression just to make a quick dollar. "text": "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. A customer’s experience with a brand can create repeat business or turn off big clients. Although it often feels like shipping fees are just the cost of doing business, there are strategies that you can put into place to keep more money in your pocket while making customers happy, such as finding the right shipping rate, using a multi-carrier shipping strategy, and accessing mail discounts with a postage software. },{ Shipping and handling are unavoidable logistics costs when running an ecommerce business. Sometimes, the best way to reduce shipping costs and scale is to partner with a professional fulfillment company. 88% of online shoppers are would never buy from a site again if the returns process was complicated, or took too long. Each of these ten ways to reduce business costs focuses on making an alternate decision that can save you money. Online shipping and sending software isn’t just for the big guys anymore, and it can make a significant difference in reducing both shipping costs and complexities for small ecommerce businesses. Larger boxes can lead to larger dimensional weight, which in turn will lead to more expensive shipping costs. "@type": "HowToSupply", Shipping zones are the geographical areas that carriers ship to, spanning from Zone 1 to Zone 8 for domestic shipments in the United States. Many online retailers and home-based businesses feel that rising shipping costs are starting to cut into their profits. Better Mail. Find discounted supplies" So how can small businesses that are starting out, reduce their shipping costs? You may even find some free shipping supplies. Be Precise in Shipping Costs. If you use custom branded boxes, inserts, and other fancy packing supplies like shredded paper filler or custom tissue paper, and you are struggling to keep shipping costs down, you could probably save money by ditching those. Put parameters in place for orders that meet different criteria to more accurately reflect the true cost of shipping (e.g., charge different shipping fees for orders going to different countries, one shipping fee for orders that are over a certain cart value, etc.). "text": "Hybrid shipping services like UPS SurePost and FedEx SmartPost pick up your orders and then work with other carriers like USPS to transport your packages to a sorting facility or post office location, where it is then shipped to a residential area for last-mile delivery. Know where you’re shipping. One ShipBob customer saved 120+ hours per week across three employees to focus on higher dollar activities, and another was able to grow their business 291% year over year. Zones measure the distance a shipment travels, with the point of origin located in Zone 1. This can significantly reduce your average shipping cost when you multiply out those cost savings across all orders. By cutting down the distance an order has to travel, it can be delivered quicker and at less cost. If one shipping company knows you’re looking at a competitor, they’re likely to sweeten the deal in order to get your business. Get suppliers to use your shipping account number. "name": "8. Setting clear expectations is something you can do no matter what, but if you’re really interested in offering free shipping, there are still ways you can make it work as a small business. All of the most popular eCommerce solutions, marketplaces, and carriers are already integrated into the software. 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