Shipping costs are one of the biggest expenses for many small businesses. It’s even a bigger challenge when you have to manage your shipping costs while keeping your customers happy with your products and services. By keeping your shipping costs low, you allow your business to generate higher profits. Unfortunately, that’s easier said than done!
In order to curtail some of your shipping costs, you need to find ways to reduce the sting by partnering with a reliable logistics company and being smart and resourceful with your products. Read on to learn some of the more practical ways to trim your shipping costs.
Reuse Packaging From Orders You Receive
If you’re selling fragile or are shipping anything that needs to be handled with care, it’s very much possible you spend a lot on the packaging for the added protection. Using bubble wrap, packing peanuts, or even just loose paper all add up to the cost of the package.
Luckily, you also regularly receive packages of your own from your suppliers. Why not reuse some of the packaging material you received instead of just throwing it away? Be sure to carefully unbox and unwrap your supplies so you can reuse the packaging for your next shipment of products. You can even reuse the boxes your inventory arrived in as long as they’re in good condition.
Build Shipping Costs Into the Price of Your Product
Shipping is never free. Someone has to pay for all the cost of shipping, one way or another. What’s interesting to note is that 88% of shoppers prefer to shop on sites where free shipping is available.
If free shipping is off the table for your business, an alternative is to work the shipping cost into your product’s price. However, this will definitely drive up your prices to accommodate the shipping costs, so do this with caution! In order for this to work, you need to have a better idea of your competitors’ pricing. This will only work if the prices you posted are still competitive enough that you won’t drive customers away.
Negotiate With Multiple Carriers
Most entrepreneurs tend to stick with the first shipping carrier they come across. Logistic carriers have their own pricing schedules based on the volume of the items being shipped. The more you ship, the lower your rate is. What most business owners don’t realize is they have a bit of wiggle room in negotiating the rates.
Call up a few local carriers and get a better idea of their pricing rates. By leveraging your knowledge of their prices, the size and weight of your packages, as well as the origin and destination, you can effectively get a bargain price. This is especially effective if those carriers know that other carriers are also interested in carrying your packages.
Use Third-Party Insurance
Your profit margins can take a serious hit from shipping insurance alone, especially for valuable goods. While shipping carriers offer their own insurance, opting for a third-party insurer could net you significant savings. These third-party insurance providers usually offer cheaper rates than the one your logistics carrier is offering.
Conclusion
One of the most effective ways of measuring your business’ success is your ability to reduce your expenses including your shipping fees. Without realizing it, your shipping expenses can get out of hand and affect your business negatively. By taking advantage of these tips, you can at least lessen some of the financial burdens you get from all your shipping costs. Of course, it also helps to have a logistics partner you can trust that can give you a fair price for their services!
If it’s a reputable logistics company you want, then look no further! RJS Logistics is a client-driven logistics provider with the goal of building lasting relationships with our clients. We specialize in LTL and refrigerated shipping to help you deliver your products safely and intact to your customers. Partner with us today!
