3 Tips to Reduce Shipping Costs for Small Businesses

Small businesses need to ship, too. But sometimes it can be overwhelming when there are so many different options to get deliveries done, but you want to stick to a budget.

Fortunately, there are plenty of tricks to cut costs and avoid extra spending. In this blog post, we share our tried and true tips for small business shipping practices.

Take time to choose the right packaging materials

When products you’re delivering get damaged, that means the customer is most likely to want a refund. They might also leave a negative review, which can impact future sales. To avoid damages during transit, it pays to invest in the right packaging, such as bubble-wrap or bubble envelopes.

You might be wondering if shipping insurance is worth the extra squeeze, but this depends on what you’re shipping. It can be worth it if you are frequently shipping high-value items, but it’s more of a longterm investment to save money.

Don’t forget that packaging size also matters. Choosing a package type that best fits your item and cutting back on filler material can save a considerable amount of money. 

Cutting package size also reduces dimensional weight, which is important because carriers can charge for larger parcels, even though they are lighter. 

Go over all of the shipping options carefully

Of course, customers love free shipping or two-day shipping, but you need to be savvy in how to execute it so you don’t cut into your profits. There are many ways to do this, it takes choosing what’s right for your business.

Some small businesses offer free shipping over a limited period of time, while others provide free shipping, yet raise the prices of items for sale.

For shipping times, you can provide a few options and have the customer pay for the one they want. 

The only thing you don’t want is a late delivery that may make a customer frown!

Outsourcing fulfillment duties

Order fulfillment is time consuming and meticulous work. This is labor that can be outsourced to a fulfillment company, or you can have your staff take care of it. However, even though you think you’ll probably save money by keeping fulfillment in-house, this may not be the case.

Paying to outsource fulfillment has it’s benefits. These jobs are performed by professionals who specialize in fulfilling shipping orders, handling the labels, and shipping arrangements. 

You don’t have to train staff, and with someone reliable taking care of it, your staff can focus on helping you run your business. Overall, these streamlined processes can help your company to grow.

Another bonus, is that a lot of times fulfillment companies have discounted shipping rates, which helps you save a bit more. 

3 Tips to Reduce Shipping Costs for Small Businesses
Courtney L.
March 30, 2023

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