Shipping costs tend to increase every year, and e-commerce businesses are always looking for ways to save money. If you’re facing high shipping fees, the following tips can help reduce your shipping costs:

1. Weigh Your Packages And Reduce Dimensions

Shipping will always cost more when shipping heavier items, but there are things you can do to help with costs. If you are using too big of a box for a lightweight item, you might be paying more than you should because of the space the package takes up. Larger boxes can lead to large dimensional weight, which will result in higher shipping costs if you want to reduce package weight and shipping costs, try doing the following:

  • Create custom packaging with smaller dimensions tailored to your product to optimize dimensional weight. Focus on a snug fit and prevent items from moving around in the box because this means you will be shipping more air than is necessary. 
  • Try to stick your shipping label to the actual product box to prevent placing a box in a box. 

If your e-commerce business ships to friends or family members, reuse their boxes because you can reuse sturdy boxes several times. 

2. Find Discounted Supplies

Small businesses may have access to boxes, envelopes and packing supplies at discounted rates, and you can also purchase bubble wrap, dunnage and boxes in bulk to save money. 

3. Ship In Volume To Enjoy Discounts

Many shipping companies offer discounts based on shipping volume, and you can try negotiating a rate to receive volume discounts. The more packages you ship, the better rates you will receive, and all e-commerce business owners should seek lower shipping costs as long as the service does not affect the shipping solutions or extend delivery times. 

4. Consider Prepaid Shipping

This can help you save a lot of money, and you can look into purchasing a certain number of shipping labels upfront. You won’t have to stick these labels to a box until the individual order needs to go out and this will not only save you costs, it will also save you time. 

This idea is especially helpful if you consistently ship orders containing the same weight and dimensions or know this information ahead of time, as this will ensure accurate shipping costs. 

5. Use Poly Mailers

Does your e-commerce business sell small and non-fragile products? You can switch from boxes to poly mailers, which are far more cost-effective than boxes because the dimensions are smaller and they take up less room on a delivery truck. Additionally, using poly mailers requires less packing supplies like tape and bubble wrap, which will help you save even more money. 

6. Stay On Top Of Shipping Carriers And Pricing Changes

Shipping carriers change their rates all the time and experience an annual general rate increase. Increases will depend on the service level you choose, weight, carrier and other variables, and you need to know about these changes to prepare. 

While there is no way to reduce shipping costs for these rate increases and surcharges, knowing about them will help you take the necessary steps, and you will have time to decide if you want to include this rate increase in the shipping fees you charge your customers or if you will cover the costs yourself. Or, you can offset them some other way, but only if you are aware of this change in advance. 

Questions to Ask to Help Save You Money on Shipping

The tips listed above are helpful but may not be applicable to every business. Asking the right questions can help improve your bottom line, and the answers can provide you with a better sense of what you can do to cut or recover shipping costs:

1. How Are You Charging For Shipping?

The amount you charge customers can affect your margin, and customers will usually abandon their cart if they see a high shipping cost. To prevent this from happening, you need to present them with an enticing deal or the best value while customers do not want to pay for shipping, this is a major expense for a small business, and you need to find a way to make up your shipping costs. 

You can adjust the price of your products to absorb the shipping cost, or you can charge customers a reduced shipping cost while only slightly increasing the product price. You can also offer a flat rate shipping fee to all customers using a blended average shipping cost across all your orders or require a minimum amount of money to be spent on your products in exchange for free or fast shipping. 

2. Can You Try A Different Carrier?

It’s always worth looking into different options because there may be great deals or discounts you can take advantage of. Different carriers may offer cheaper rates than what you are currently paying and you can always take a look to see if you can save money for your e-commerce business.

3. Are You Using The Right Type Of Packaging?

Packaging mistakes can cost a fortune and increase your costs. Many small e-commerce businesses are guilty of this and using packages that are too big or using boxes with the wrong dimensions can result in unnecessary costs. Using boxes when you can use a poly mailer or padded envelope can also make a big difference. 

4. Where Are Your Orders Shipped To?

Take the time to understand patterns regarding shipping destinations because this will help you determine where you should be shipping from. If you’re shipping internationally, for example, and paying a fortune, you can look into working with an international fulfillment provider that operates locations across the globe. 

Wanna Save On Shipping? We Got You!

Are you looking for ways to save on shipping costs? Lot Logistics can help you find the right freight solutions for your needs. We specialize in cross-border shipping and are considered one of the top shipping companies because of our experience and reputation. 

We will make sure your shipments arrive on time and provide fair pricing to help our customers meet their shipping needs. We will make sure your freight arrives in its intended condition, and you can contact us at any time to learn more about our cross-border shipping solutions and other freight shipping services!