As a business owner with products, you are fully aware of the cost of shipping. After all, this is one of the facets that could affect your bottom line. In order to ensure you get the highest profit margins, it’s important to get the best price. Most often, businesses can get better costs when it comes to shipping—but they just don’t realize it. If you are sending out products and need to find a way to save some money, check out these seven ways to save money on shipping.
1. Use a comprehensive service
When it comes to shipping products, chances are you’re either sticking with the brand name companies or you’re allowing a company to drop-ship for you. While these are good, you need to look for a comprehensive service that will not only find you the best deals, but provide you with analytics on your shipping to help you save even more over time. Reveel, a company dedicated to providing Shipping Intelligence® and transparency in the shipping world, is one company that will deliver you the best pricing, invoice auditing, and real-time reporting and analytics. Using a company like this will help you gain a better understanding of your costs and where your money is being spent.
2. Negotiate the best deal
If you’re not using a service that will find the best deal for you, then it’s important you put on your negotiating pants and get the job done yourself. There are many different discounts and rates you can negotiate from big shipping companies, especially if you are going to do a large volume of shipping throughout the year. Have a detailed overview of the amount of shipping your company will do throughout the year and then present this to management at your local shipping facility. Use this information to leverage the best possible deal that will save your company money.
3. Use a dropship company
Dropshipping has become a popular business for many people, especially those who are looking to be their own boss and work their own hours. If you want to save money on shipping, consider hiring someone who will dropship your items for you. This way, you don’t have to worry about stocking the packaging or staffing the team to do it. Instead, you will pay the dropship individual or company to do the work for you, and these individuals will usually work for a cheaper price than a bigger corporation. Do some research to see who is out there and what their costs may be, and then use this to your advantage.
4. Re-evaluate your packaging
You’ll be amazed at how much money the wrong packaging could be costing you. For instance, shipping items in a big box instead of a large envelope could result in hundreds of thousands of dollars every year. Take some time to do the research and figure out exactly what you’re spending on your packaging. Then, find some alternative shipping packaging methods and have those priced out. You just may find that cutting down your packaging by a little bit could result in a huge savings that will keep your company profiting.
5. Ship in bulk
Deepening on the size of your business, you may only ship a few items out every few days. While this is a great way to provide swift service, it could be costing you. If you have a smaller amount of shipping needs, then you should consider bulk shipping. For instance, maybe you only ship items out on a specific day of the week. This way, you can negotiate a better rate with the carrier because you’re shipping more items less often.
6. Ship slower
This may seem counter-productive, but offering only ground shipping can help you save money. After all, you pay less when the companies shipping the items can take their time with your package. In order to stay competitive, you can always offer faster shipping during the holidays or busy times of year, or you can deliver coupons for faster shipping to your customers. Just keep in mind that a slower ship time will save money.
7. Reuse materials
If you’re a startup company, you know that saving a dollar is important. The best way to save money on shipping is to reuse materials when possible. For instance, keep boxes in good condition you could reuse to ship your own items. You can also save things like paper and shipping peanuts so you don’t have to spend your own money on them. Just be sure the items you save are in good condition; otherwise, it will reflect poorly on your company.
Shipping can be a great way to expose your product to a wider audience, but it can also be expensive. Use these tips to save money on your shipping costs for more profits in your pocket.