For quite some time now, shipping costs have been amajor obstacle formany ecommerce businesses, taking atoll ontheir bottom line. When itcomes toshipping your products, several factors, including packaging materials andweight, can drive costs. Ifyou’re not careful, these costs can quickly accumulate, leading tounnecessary extra fees.
Inthis article, we’ll share thetop 10ways you can save money onshipping. From leveraging technology toembracing strategic packaging practices, you can reduce shipping costs, enhance your business, andmaintain financial prudence andefficiency.
Let’s dive in!
Optimize Your Packaging
These days, packaging goes beyond being confined toboxes orcartons. Itimpacts product reliability, quality, speed, shipping costs, andflexibility. You can save money foryour business ifyou use less material andoptimize your packaging.
Additionally, since more andmore companies are going green, itisbest toutilize more environmentally friendly packing supplies, which can have longer life cycles andhave less ofanimpact ontheenvironment.
Here are some ways tooptimize your packaging andreduce shipping costs:
- Choose lightweight andcustom packaging materials toreduce package weight.
- Reduce thedimensional weight (height, width, length) ofyour packaging. You can dothis bychoosing smaller boxes, eliminating filler materials (e.g., packing peanuts orbubble wrap), andarranging theitems efficiently. Minimizing empty spaces andusing packaging tailored totheproduct’s size can significantly reduce dimensional weight. Itisvery unnecessary tosend alittle product inahuge box.
- Try using corrugated boxes, asthey are sturdier andcheaper (boxes that are shaped with ridges orfolds).
Speaking ofmore sustainable options, Samsung introduced
Samsung’s packaging isrecyclable but also reusable
GoFor Discounted Supplies
It’s worth looking into discounted shipping supplies asthey can have asubstantial impact onyour shipping expenses. Bytaking advantage ofsales anddiscounts, you can stock uponpackaging supplies such asboxes, tape, andanypacking material atalower cost.
Wesuggest performing asales forecast forthenext quarter andstocking uponsupplies inadvance. This can ultimately lead tomore competitive pricing foryour products andallow you tosave onavoidable costs inthefuture.
GoFor Bulk Purchases
Inaddition tofinding discounted packaging materials, another way tosave money onshipping istopurchase inbulk. Buying inbulk saves money inthelong term since you obtain alower overall cost when you buy more atonce. Italso guarantees that you always have enough supplies onhand tofulfill requests quickly, reducing theneed forreordering.
Buying inbulk also avoids therisk ofsudden cost spikes, asmaterial cost fluctuations can wreck abusiness’s bottom line. Additionally, itallows formore accessible organization andstorage ofshipping supplies, making theentire shipping process more efficient.
Overall, buying shipping supplies inbulk isasmart investment foranybusiness looking tostreamline its shipping processes andsave money.
Use Discounted Shipping Carriers
Shipping discounts directly impact profit margins, allowing forcompetitive pricing andpotential sales growth. These discounted shipping rates can also offer customers attractive incentives, such asfree ordiscounted shipping, enhancing their appeal.
Online businesses have many options when looking atdiscounted shipping rates:
- Using shipping calculators foraccurate estimates
- Taking advantage ofbulk shipping options
- Negotiate shipping rates based onshipping volumes
- Join shipping loyalty programs andother exclusive discounts
- Stay informed about seasonal promotions andspecial offers from shipping carriers.
Discounted shipping carriers vary bylocation, andaquick Google search fordiscounted shipping near me should give you some great options tochoose from.
Ifyou sell online with Ecwid byLightspeed, buying discounted shipping labels foryour orders iseasy. You can actually dothat right inyour Ecwid admin! This way, purchasing andprinting shipping labels isascheap, efficient, andconvenient aspossible.
Buy shipping labels right where you manage your orders
Learn more about theprocess inour article below:
Print Discounted Shipping Labels atHome with Ecwid
Read more
Ifyou’re just getting started with your store, you’ll also find this instruction oninitial shipping setup helpful.
Offer Customers Shipping Advantages Strategically
Strategically providing customers with perks isessential when shipping packages. Inacompetitive market, emphasizing all shipping benefits iscritical forincreasing sales, retention, andbrand perception.
Here are some ofthestrategic ways toprovide shipping advantages toenhance thecustomer shopping experience:
- Implement tiered shipping choices, providing customers faster delivery forapremium price ormore affordable solutions forcustomers onatighter budget (Did you know that 88% ofconsumers will pay for
same-day delivery?) - Create free shipping thresholds toencourage larger purchases
- Introduce
hassle-free returns with prepaid shipping labels, boosting customer confidence - Collaborate with loyalty programs togrant shipping perks, incentivizing repeat purchases
- Regularly communicate shipping updates andprovide tracking information fortransparency.
Tailoring theshipping strategy tocustomer preferences creates acompetitive edge andnurtures customer loyalty, leading toastronger brand relationship andsustained growth.
For example, theonline fashion retailer, Fashion Nova, offers free
Fashion Nova offers free shipping oncertain orders
Ifyou’d like toencourage customers toadd more products tothecart toget free shipping, you can dosobyadding apromo bar orusing theapps from theEcwid App Market. Check out apps like Free Shipping Bar andAOV Progress Bar.
Protect Your Shipments
Shipping insurance isanideal way tosafeguard investments andprovide peace ofmind. Shipping insurance protects against loss, damage, ortheft during transit, ensuring you are not financially burdened ifunforeseen incidents occur.
While asmall business must pay forinsurance, itisless expensive than paying forall shipping charges andother potential losses. Aside from saving money onshipping costs, itincreases customer trust because customers prefer tobuy from stores that offer
Tochoose theideal shipment protection, you can consider these elements:
- Assess your shipping volume, product value, andrisk tolerance
- Research reputable insurance providers andcarriers that are offering comprehensive coverage forspecific items
- Compare deductibles, coverage limits, andpremium insurance costs tofind abalanced option
- Read policy terms carefully, taking note ofexclusions andclaim processes
- Prioritize providers with transparent claims handling andpositive customer reviews.
Bytheway, when you buy shipping labels inyour Ecwid admin, you can see ifalabel’s price includes insurance:
Use Flat-Rate Shipping Rates
This method isbeneficial forsending items ofvarious sizes within apredefined packaging type. While itmight not always bethemost economical choice forall shipments, itcan beadvantageous forheavier orbulkier items, providing cost savings compared tostandard shipping rates.
You can maximize
- Fit theexpensive items orheavy packages into thepredetermined packaging, utilizing cost predictability.
- Upgrade packaging tomaximize space within thebox. For example, when you’re shipping shoes. You can upgrade packaging byusing shoeboxes that fit each pair snugly, stacking them efficiently, andadding shoe inserts toprevent movement. This minimizes wasted space, reduces shipping costs, andkeeps theshoes protected, all while optimizing space within thebox.
- Promote
flat-rate shipping’s perks tocustomers, emphasizing convenience andsavings. - Consider using itforfree shipping offers toboost order values.
- Regularly review its suitability based onmarket trends andcustomer preferences.
Ifyou sell online with Ecwid, here’s how toset upflat-rate shipping inyour online store.
You can set upflat rates per item ororder
Also: 6Things You Can Ship with USPS Padded Envelopes toSave Money
Compare Shipping Costs
You should always doyour research andcompare shipping fees tomaximize profit margins andcustomer satisfaction. You can determine thecheapest way toship packages forspecific products anddestinations bycomparing rates from multiple carriers.
Asaresult, you can offer competitive shipping charges andprevent excessive delivery costs.
Comparing costs ensures customers receive affordable andefficient shipping, enhancing their shopping experience. Furthermore, itenables you toadjust toshifting market conditions, maintain competition, andallocate resources wisely.
Toaccurately compare shipping rates, you should follow these steps:
- Gather thenecessary details about theshipment, such asshipping destination address (mainly when you ship internationally)
- Get quotes from multiple shipping companies, especially major carriers, toidentify your shipment’s most competitive rates. Many ofthem provide shipping calculators ontheir website
- Include anyextra fees like fuel surcharges, residential delivery charges, orspecial handling fees
- Compare thedelivery speeds, such aspriority shipping, expedited shipping, andfast shipping, choosing themost suitable shipping method that aligns with theshipment urgency
- When shipping internationally, itisimportant tothink about customs duties, taxes, potential delays, andhigher shipping costs. These vary greatly between carriers, sokeep aneye out.
Ifyou have anEcwid store, it’s easy tocompare shipping rates using theapps from theEcwid App Market.
Comparing rates using theShippingEasy app
Take Advantage OfOnline Shipping Tools
Ecommerce shipping tools are
These tools enhance efficiency, cut costs, andhelp you provide reliable and
Bytheway, onEcwid, you can set up
Most major carriers andshipping companies offer different shipping software totheir clients, but thecommon ones are:
- Shipping calculators: This shipping software provides
real-time shipping cost calculations based onpackage size, weight, andshipping destination. - Label generation: This shipping software allows you tocreate andprint labels without issues, reducing manual data entry andminimizing errors.
- Address validation: This shipping software can verify andcorrect recipient addresses, avoiding delivery issues andpotential returns.
- Tracking andnotifications: Tracking andautomated notifications keep you andyour customers updated about delivery progress.
- Ecommerce platform integrations: Find shipping software that seamlessly integrates with popular ecommerce platforms, streamlining order processing andlabel generation.
- Returns management: This can help you facilitate thereturn management ofshipments, making theprocess smoother forboth you andyour customers.
Reduce Shipping Costs byConsolidating Shipments
Shipment consolidation involves combining multiple smaller shipments into asingle, larger shipment before transportation. This shipping strategy optimizes shipping efficiency byreducing thenumber ofindividual loads andmaximizing space utilization.
For example, consider anelectronics ecommerce business receiving orders from various customers. They have several orders with individual items tobeshipped tothesame city. Instead ofsending each order separately, theecommerce business consolidated theshipments. They compiled theitems from different orders, properly packaged them together, andcreated asingle shipment load. This consolidated shipment isthen sent tothedestination city.
Customers receive consolidated shipments through various methods:
- Pick upfrom thedistribution centers: Orders are first shipped toacentral distribution hub where they are consolidated. Customers can choose topick uptheir orders from thecenter orhave them delivered from there.
Last-mile delivery: After consolidation, orders are sent toalocal distribution hub, where they are then dispatched tocustomers’ addresses via traditionallast-mile delivery services.- Retail store pickup: Some retailers offer theoption forcustomers topick uptheir consolidated orders atanearby physical store. Here’s how toset upanin-store pickup foryour Ecwid store.
- Locker delivery: Incertain regions, shippers may use locker systems forconsolidated shipments, where customers receive aunique code toretrieve their packages from asecure locker.
- Residential delivery: Incases where consolidation happens enroute, customers will receive their consolidated orders attheir doorstep through standard residential delivery services.
This can help you save money andlower shipping costs, ascarriers often offer
This approach ishandy forbusinesses shipping smaller quantities ofgoods tothesame destination, allowing them tobenefit from economies ofscale while maintaining
You can effectively consolidate shipments byfollowing these simple steps:
Plan Ahead
Planning before consolidating shipments ensures efficient grouping, proper packaging, andsmooth logistics, minimizing delays anderrors andmaximizing
Check Shipping Policies
Itiscrucial tocheck theconsolidation services’ shipping policies, asitensures compatibility with your needs, clarifies rules onpackage types, weight, andprohibited items, andhelps sellers make wise decisions.
Group Similar Destinations
Grouping packages reduces routing complexities, optimizes delivery routes, andminimizes transit times. This efficient approach enhances customer satisfaction byensuring timely deliveries while potentially reducing shipping costs through consolidated shipments.
Coordinate Arrival Times
Coordinating arrival times allows sellers toefficiently combine items without delays, minimize storage costs, andoptimize packaging.
Packaging Considerations
Thoughtful packaging guarantees secure item handling, avoids damage during merging andtransit, andmaximizes space efficiency. Itensures that items arrive inperfect condition, assuring customer satisfaction andreducing anyadditional costs.
Label Clearly
Provide Instructions
Providing clear guidelines helps consolidation services combine packages accurately andefficiently. Instructions ensure items are grouped accordingly, minimizing errors, optimizing packaging, andfacilitating aseamless consolidation.
Shipping Cost Considerations
Awareness ofexpenses guides decisions, ensuring that consolidation remains economically beneficial while maintaining quality shipping services.
Documentation andCustoms
Properly completed documents ensure compliance with regulations, preventing delays orissues atcustoms. Accurate paperwork facilitates efficient customs clearance, minimizing therisk ofdisruptions andensuring smooth delivery tointernational customers.
Start Saving onShipping
Shipping isexpensive, but itdoes not have todestroy your margins. You’ll besurprised athow low your shipping expenses can get once you optimize your operations.
Byfollowing thetips we’ve detailed inthis article, you should learn how tominimize shipping costs, optimize your resources, andchoose thebest possible service, all while keeping your customers happy.
Start Selling Online with Ecwid
Learn more
- Ecommerce Shipping Basics forOnline Sellers
- How toShip aPackage: AComplete Guide
- How toCalculate Shipping Costs forYour Online Store
- Top 10Ways toSave Money onShipping
- End-Year Shipping Deadlines
- How Business Owners Can Save With Flat-Rate Shipping
- 6Free Shipping Strategies andTheir Alternatives
- 6Things You Can Ship with USPS Padded Envelopes toSave Money
- How UKSellers Can Save Money andTime onShipping
- The 6Cheapest Ways ToShip APackage with USPS
- How Much Does ItCost toShip aPackage?
- Your Guide ToInternational Shipping Address Formats
- How Measure aBox forShipping
- Cheap Shipping Boxes andWhere toFind Them
- How toShip Internationally
- How toNegotiate Shipping Rates
