Shipping costs are by and far one of the greatest factors in the bottom line for e-retailers everywhere. Heck, Amazon spends billions on shipping each year and has said that they will be considering creating their own shipping system to reduce this cost. That’s telling of just how much this element impacts the spending of companies big and small in ecommerce.
But when it comes to your ecommerce business, you’ve got a different bottom line to protect: your bottom line and your livelihood. For the average ecommerce owner, their business is a small business, the equivalent of a mom and pop store competing with Wal-Mart (Amazon), in a big world filled with plenty of fishes and lots of hungry sharks.
Naturally, you want to save money on shipping. Sometimes it can be difficult to know where to look or how to start doing so. Lucky for you, you’ve just come across this article. We’ll show you some simple tips that can help you save money on shipping, with our resource being money saving tips from a shipping company.
One of the first places you want to start with is your packaging. What’s going on with the package, how much is this packaging cost you and can you reduce this cost and still get the same shipping rates? Look to discount packaging stores on the web. U-Line is a great place to start. If you can knock down the price on package even 10 percent, you’ve just slashed your shipping rate by a large margin.
Get Locked In, Negotiated Rates
You are likely sending numerous size and weight packages that may require that you utilize different shipping carriers. OK, but are you using negotiated rates with these carriers? FedEx and UPS offer negotiated rates, provided that you are meeting the volume requirements. It just takes one phone call to a rep to get locked in at these special discounted prices.
Start Using USPS More
If you are sending packages that are under 20 pounds, you really should consider using USPS. This is about what most ecommerce goods fit into. USPS Priority Mail is a wonderful way to send packages quickly and inexpensively so that you can save money and offer expedited delivery for your customers. You can also get negotiated, volume-based rates from USPS too.
Connect with Discount Providers
What other discounts can you find? Providers like Endicia, Stamps.com and Pitney Bowes all offer discounted USPS shipping rates. You’ll of course want to make sure you compare your options with all of these providers to know for sure which one is the best fit for your company’s needs. Using them will help you save even more money off your shipping rates.
Assess Your Logistics
Finally, there’s logistics. What if there was another way to save even more money? Companies like TrueShip Software offer built-in shipping savings that you can use just for using their software to ship your goods and manage fulfillment. They connect you to low commercial negotiated volume rates on USPS Priority Mail so you can save even more money each time. Make sure you don’t overlook this viable option to save money on shipping, either.