Darren Schreher, Digital Manager for INTO THE AM and iHeartRaves shared with me his experience with ShipStation: . And Amazon only makes small business shipping more challenging by continuously raising the bar for faster free shipping — all of which becomes increasingly more expensive to replicate for small businesses that fulfill orders from home. "@type": "HowToStep", Our search engine conveniently sorts the shipping … One ShipBob customer saved 120+ hours per week across three employees to focus on higher dollar activities, and another was able to grow their business 291% year over year. In today’s competitive e-commerce arena, more and more businesses are entering the marketplace than ever before…and it’s becoming even more essential to keep costs under control. This can significantly reduce your average shipping cost when you multiply out those cost savings across all orders. "text": "One way to save on shipping costs is to cut extra services, which, depending on the value of the product you’re shipping, could be shipping insurance. "supply": [{ "name": "8. One of the most cost-consuming expenses for small businesses lies in shipping. However, the tradeoff is often a slower delivery.Note: There are specific volume, weight, and dimension requirements. "@type": "HowToStep", "text": "Hybrid shipping services like UPS SurePost and FedEx SmartPost pick up your orders and then work with other carriers like USPS to transport your packages to a sorting facility or post office location, where it is then shipped to a residential area for last-mile delivery. "name": "3. "image": "https://www.shipbob.com/wp-content/uploads/2019/05/iStock-943022616.jpg", Zones measure the distance a shipment travels, with the point of origin located in Zone 1.The farther away the shipping destination is, the higher the zone and more expensive and slow it is to ship. },{ There are over 75 charges that could apply to each of your shipments, including Saturday delivery fees, fuel surcharges, and signature fees. "step": [{ Saving money on shipping supplies may or may not be beneficial to your business. Look Into Different Carriers. 2-day shipping) is more economical than time-definite service (e.g. How to Reduce Your Business Shipping Expenses: 1. "text": "See if the ecommerce platform your store is powered by or the marketplace you sell on offer any bulk discount shipping services or programs. Cut Shipping Costs. Small business shipping has become a cost management focus for eCommerce brands. And when you’re shipping delicate electronics or other fragile items to customers, you need to take extra steps as well. This is especially important for ecommerce companies as shipping costs can account for up to 25% of their costs. Shipping will continue to be a significant business cost so long as the Internet continues to enable aspiring entrepreneurs around the world through platforms such as Amazon, eBay and Etsy. Recent market research states that only 22% of the merchants feature information about their shipping policy on their homepage. "text": "Many brands pay high shipping fees when they ship to destinations that are far away. Be Precise in Shipping Costs. If you’re shipping internationally and it’s costing you a lot of money, you may want to reconsider or instead work with an international fulfillment provider like ShipBob who has locations in the USA, Canada, and Europe. As a result, ShipBob customers have experienced an 18% reduction in cart abandonment rate and a 97% increase in their average order value. When you have more time, day-definite shipping service (e.g. 12 / 16 / 2020, Don’t let shipping costs nibble away at your small business’ profit margins. If one shipping company knows you’re looking at a competitor, they’re likely to sweeten the deal in order to get your business. The dimensions are smaller, taking up less room on a delivery truck, and using them also requires less packing supplies like tape and bubble wrap to save even more money. Of course, this is most applicable to high value items. You can also purchase packing supplies like boxes, dunnage, bubble wrap, airfill, and poly mailers in bulk to save money. You will also have to consider tariffs, taxes, and other fees. Articles Related to Reducing Shipping Costs. By better controlling what you spend to mail orders out, you pass the savings on to the people interested in your products and give yourself an opportunity to put money back into your small business. Not only is this better for our customers but we also gain a 13% savings to our bottom line.”, Pablo Gabatto, Business Operations Manager at Ample Foods. Things like boxes and bubble wrap can often be reused many times over. Use small business-friendly services like Click-N-Ship ® … As a specialist in shipping and mailing, Pitney Bowes set out to see what challenges small online retailers faced when it came to mailing orders out to customers. To calculate international shipping rates and discover the cheapest way to ship internationally, play around with the different carrier rate calculators to determine the best shipping rates for your business. “Dim” is shorthand for dimensional. Zones measure the distance a shipment travels, with the point of origin located in Zone 1. 1. Multi-carrier shipping is a logistics strategy where the sender will choose the best carrier and shipping option for each order. Learn how small businesses can reduce shipping costs in ways that won’t do the customer a disservice. "image": "https://www.shipbob.com/wp-content/uploads/2019/05/iStock-943022616.jpg", 9 Ways To Reduce Shipping Costs For Small Business. 74% of shoppers consider free shipping an important factor when making a purchase online. It’s often best to use packaging provided by the postal carrier. Shipping has never been more important for a small business, and it’s keeping many businesses alive during the COVID-19 pandemic. … As a business owner you can’t stop for searching new ways to reduce business costs and gain more profits. The first approach is the simplest—look into different carriers. How to Reduce Your Business Shipping Expenses: 1. Put parameters in place for orders that meet different criteria to more accurately reflect the true cost of shipping (e.g., charge different shipping fees for orders going to different countries, one shipping fee for orders that are over a certain cart value, etc.). If your product packaging can be manufactured so it’s ship-ready, you can save on shipping costs by simply slapping a label on it. Question: How can I reduce shipping costs? Over 28% of customers abandon their carts once they see the shipping amount they need to … This can cut costs as much as 50% in some cases. Any time something can’t be reused, recycle it to help your business become more eco-friendly. Shipping costs are determined by the following factors: Delivery time (2-day, overnight, parcel post, etc.) Get suppliers to use your shipping account number. Because shipping and handling fees are now a key element in the buying decision process, Upela helps you build a sustainable business model by comparing the shipping rates to always get the cheapest price for the best service. "@type": "HowTo", "name": "Scale" Focus less on delivery speed. This is important if you offer free shipping, as the money saved can be reinvested into growing your small business. And, at the end of the fiscal year, you’ll find … In comparison to shipping products to the US from Canada, which can be extremely variable in cost, fulfillment by ShipBob is much easier to estimate.”, Greg MacDonald, CEO & Founder of Bathorium. ", On average, 40% of online shoppers have returned an order over the course of a year. Tools and processes help reduce shipping costs for small businesses, let us provide them. Companies like ShipStation and Stamps.com have free trials for small businesses managing shipping themselves. How can I reduce shipping costs for my small business? The good news is there are fairly simple things you can do to reduce your shipping costs, and make more profit today! 97% increase in their average order value, Adjust the product price to absorb the shipping cost and offer. Free shipping has become the standard for online sales. ©1996-2020 Pitney Bowes Inc. All rights reserved. }. So how can small businesses that are starting out, reduce their shipping costs? If not carefully monitored, shipping costs can quickly escalate. When trying to reduce shipping costs for your business, it is best advised to educate your customers about them. Costs can vary widely — as can the amount of time and investment it takes to ship the same package. If you’re printing labels and shipping from home, consider investing in a postage scale to better predict costs and purchase the right shipping labels. 3. ... Buying a range of shipping box sizes will help to reduce overall package volume and reduce shipping costs. ", By sticking to just one option, like the USPS® Flat Rate Box, small businesses risk overspending on shipping when they don’t need to. Shipping is the black sheep of every online seller. Use Shipping Aggregators A shipping aggregator like Shiprocket can help you leverage the pin code coverage of several courier partners and save time and money with discounted courier prices. Demand in the ecommerce sector leaves a shortage of everything from truck drivers to warehouse space. Carriers raise their shipping rates every year. The packaging cost of a retail product could be affected by several factors that directly imparts in it. Discover how you can reduce shipping costs for your online business. They may have features that provide, One way to save on shipping costs is to cut extra services, which, depending on the value of the product you’re shipping, could be. There are also plenty of, See if the ecommerce platform your store is powered by or the marketplace you sell on offer any bulk discount shipping services or programs. There’s no harm in attempting to negotiate volume discounts in exchange for loyalty to one shipping carrier. ", Creating a multi-carrier shipping strategy for your small business One strategy to avoid overspending on shipping fees is to stick to a routine when it comes to shipping. Charge customers a reduced shipping cost while only slightly increasing the product price (e.g., charge customers half the price of shipping but bake the other half into the product price). Thinking about your current ecommerce shipping process, answer the following questions to get an even better sense of what you can do to cut or recover shipping costs. Now, we can comfortably assign a shipping cost to each order by pinpointing the product weight and destination zip code. "name": "5. },{ Cut Shipping Costs. © Copyright 2020 ShipBob, Inc. All Rights Reserved. Discover how you can better calculate and reduce shipping costs for your small business. If we kept shipping only from the East Coast, it would be expensive to ship to the West Coast.”. How To Reduce Shipping Costs If you are looking for a cheaper way to ship, you might want to consider educating yourself on Parcel Select, Media Mail, Priority Mail padded envelopes, Regional Rates and Flat Rate shipping! In this blog post, we’ll review 6 ways to reduce your business’s shipping costs. Adding shipping costs to the price of a product is another way to reduce small business shipping costs. If you use your own packaging, you could face additional "dimensional fees"... 5. Here are some answers to common questions on about how to reduce shipping costs. In addition to weight, carriers consider dimensions of the package when calculating shipping costs. There are many ways to reduce your shipping costs. Negotiating rates. Shipping orders can be expensive. "@type": "HowToStep", However, the tradeoff is often a slower delivery. One of the major factors that determine the success of your online business is the extent to which you reduce expenses. "text": "Shipping companies such as USPS, UPS, and FedEx may provide small businesses certain boxes and envelopes for free or at a discount for certain packing supplies. When you’re a small business, you have to keep operating costs as low as possible. "text": "If you sell small, non-fragile products like clothing, shipping orders in a mailer envelope or poly bag can be far more cost-effective than boxes. If your business depends on shipping products and services, then it’s definitely to your benefit to save money on shipping costs, and doing so will allow you to use the savings elsewhere in your business to improve your bottom line. "@context": "https://schema.org/", Of course, the more packages you ship, the better rates you can get. Conversely, 95% of shoppers who had a pleasant experience making a return said they would gladly purchase from that retailer again. Shipping zones are the geographical areas that carriers ship to, spanning from Zone 1 to Zone 8 for domestic shipments in the United States. "image": "https://www.shipbob.com/wp-content/uploads/2019/05/iStock-943022616.jpg", Use online shipping. Reduce Shipping Costs for Small Businesses ; Finally, as you aim to make more informed decisions in your future parcel actions, remember that Refund Retriever can help! Larger boxes can lead to larger dimensional weight, which in turn will lead to more expensive shipping costs. Regardless of how much you’re spending on shipping, the amount you charge customers can also affect your margin. Some factors to consider when choosing a shipping option include the weight of the package being shipped, where it needs to go, and the delivery window expected by the customer. After switching to ShipBob just four months later in November, we are reaching $160,000 a month in revenue — that’s 300% growth. "name": "6. 2) Negotiate the best possible deals. Understanding patterns in shipping destinations can help to identify where you should be shipping from. Shipping companies such as USPS, UPS, and FedEx may provide small businesses certain boxes and envelopes for free or at a discount for certain packing supplies. Aren ’ t need to affix them to a box until the individual needs. All Rights Reserved Zone and more are great ways for small businesses eco-friendly! Your reputation and cause you to lose repeat business or improve your bottom.... From that retailer again your needs Copyright 2020 ShipBob, there are still many ways for online. As important to their purchase and eventually work their way into all of the most used. It would be expensive to ship inventory management, warehousing, and shipping costs line. 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