How E-Commerce businesses can save money on shipping costs

1. How E-Commerce businesses can save money on shipping costs The way small businesses operate is entirely different from how big businesses do. While there are many differences in the way each carries out its operations, the most striking of all the differences is the amount of investment involved. Small businesses do not have excess money at their disposal and so, it is evident for them to work in limited resources, save money wherever possible, earn substantial profits and thus succeed one step at a time. Talking specifically about cost cutting of small eCommerce businesses, they have scope of saving on the shipping cost. Having said this, we would like to highlight that shipping isn’t cheap, especially now when demand in eCommerce has caused a dearth of resources from truck drivers to warehouse spaces. Then how do eCommerce business reduce the shipping cost, you ask? Well, here we have written a few points that can help save money on shipping cost and thus improve their profit margin: 1.Weigh your packages and reduce dimensions Obviously, heavier packages cost more to ship, unless you opt for flat-rate shipping. Besides this, what matters for shipping cost calculations is the dimensional weight or the DIM of the goods, which includes dimensions of the shipped package. If you are shipping a small lightweight item, choose the box accordingly; a larger box will occupy more space, leading to larger dimensional weight which will add to the shipping cost. 2.Get discounted shipping rates Going by the logic that more number packages you ship, the better rates you get, large order volumes can get you discounts from shipping companies. But, if you are just beginning or are too small a business that doesn’t get hundreds of thousands of orders a month, then also you can try negotiating for price in exchange for loyalty to the same shipping carrier. Also, don’t forget that keeping a check over shipping cost is important but not at the price of quality services; you shouldn’t compromise on the shipping solutions or the delivery times.

2. 3.Reduce the cost on supplies Usually, people may not tend to think about the money spent on packaging supplies but it is something that can help save big amounts when ordered in bulk. Don’t let the higher investment upfront scare you off, think about it in the long-term as purchasing the packaging in bulk will reduce the average per-shipment cost. 4.Insure with third parties Though the cost of insurance and amount covered depends on the cost of the goods, third- party package insurers are usually cheaper than shipping carriers. 5.Use poly mailers instead of boxes Like we mentioned before that the cost of shipping also depends on the dimensions of the package, it is better to opt for mailer envelope or poly bag for small non-fragile goods. These not only save you money by taking up less space but also because these require less packaging supplies like tape and bubble wrap. 6.Cut down the distance As an eCommerce seller, providing fast deliveries is as important as saving on the cost. And by cutting down on the number of zones that the package travels, you can do both, save time as well as money. If your sales are higher in a particular part of the country, the best thing you could do is opt for fourth-party logistics provider (4PL) who can offer fulfillment centre closest to most customers using shipping destinations from their sales history. So these are some of the tips that can help small E-Commerce business save money, but apart from this, a lot depends on the services of the freight forwarder. Choose a shipping company that can guide you in minimizing the cost, understands how to pack the items safely in limited amount of money and also offers 4PL solutions.