Managing overheads is an important part of running any business. And for companies that sell their goods online, the cost of shipping those products can quickly add up. The good news is that lowering shipping costs is not that hard. Here’s how you can go about optimizing your shipping strategy for lower costs.
1 – Consider slower shipping
Speed comes at a premium, so using the fastest shipping option only when necessary. is important. One way to save money is to not offer the fastest shipping possible for customers who live in hard-to-reach areas. Or let customers decide whether they are willing to pay extra to have a package delivered as soon as possible.
The downside of this approach is that it puts pressure on the courier service to meet its deadlines. A customer may be ok waiting 4 days to receive a package, but if the same customer paid extra to have it delivered in 48 hours, a two-day delay will feel like an eternity.
2 – Compare price options
Many online tools allow users to compare cheap couriers, and you should make heavy use of them. Prices are always changing, and new couriers enter the market every year, providing plenty of business owners with a chance to switch providers for a better deal.
It’s also a good idea to look for courier services that specialize in different categories. A courier that only delivers to major capitals or that only delivers within a given city may have better prices and delivery times than service providers who focus on a more generalized approach.
Integrating different service providers into the shipping options section of your online store may be tricky, but the added efficiency offered by these specialist couriers can give you an advantage in some specific markets. As well as helping your company save money.
3 – Negotiate with your courier
If you move a large number of packages every month, it’s a good idea to call your courier service provider to see if they are willing to cut you a deal. You may be able to get a discount, especially if you are willing and able to pay part of your shipping bill in advance.
This is another point where using price comparison tools can be useful. If you know that you can get a better deal by moving to a competitor, you might be able to get your current courier to match that price. They get to keep their client, and you get a better price without having to go through the logistical hassle of switching to a different courier.
4 – Reconsider your packaging
While package weight is often the primary concern when it comes to shipping prices, package size is also a factor. Make sure you are using boxes that are only as big as they need to be to ship your products. And make sure you need boxes at all. Small, non-fragile products can be shipped in envelopes or poly bags instead.