Did you know that UPS and Fed-Ex ship a combined 25 million packages a day and about 6.5 billion packages a year? Many huge corporations and businesses consider shipping a minuscule part of their budget.
But, if you’re a small business, it can be a major part of your budget. It can even make or break you. Most small companies are constantly looking for ways to save on shipping.
For many, it can be the difference between finishing the year in the “black” or the “red.” If you want to learn how your business can save on shipping, read on to find out.
1. USPS First Class
Often switching to first-class shipping can save you money. But, most people don’t even realize this can work for them. If your packages are under 16 oz, then shipping first class is the way for you.
If you ship mostly heavy packages or your business ships 50,000 of them per year, then using Commercial Plus shipping through USPS is right for you.
If you ship less than 50,000 packages per year, which is the case for most small businesses, you should use USPS Priority Mail.
2. Slow It Down
Using slower shipping speeds is a great way to reduce the price of shipping. This method works best with monthly subscriptions.
Your customers will expect to get their subscription box on a certain day every month, no matter when you actually ship it.
Even if you don’t have a subscription-based business, you can still use slower shipping times to your advantage.
As long as you’re upfront with your customers when they order, that it may be a couple of weeks until they receive their product, most of them won’t mind.
3. Customize Your Packages
Customizing things usually costs more money.
But, if you spend a little in the beginning to customize your packages to fit your products, you’ll save yourself from spending extra shipping a box with the excess room, and that will cost more.
Taking a look at corrugated boxes might be an excellent place to start.
4. Location and Zoning
Where you ship your boxes also affects your cost. You need to assess where all of your customers are located. Then, you need to find a carrier that’s as close as possible.
You can use multiple shipping partners too. You won’t always be able to save a bunch doing this, but you’ll definitely find that this method will save on shipping.
5. Insurance: To Be or Not To Be
Insurance can become a sort of Catch-22. On the one hand, you’ll want to have insurance, especially if your items are more valuable. On the other, if you tend not to see many of your items returned, you may not need it.
Also, the returns may be the fault of your carrier service, so make sure you keep an eye on that as well.
Time To Save on Shipping
Shipping costs can make or break your bottom line. Taking these steps to reduce those costs will ensure your maximizing your shipping budget.
Now that you have these save on shipping tips in your arsenal, you’re ready to reduce costs and figure out where to spend your extra money. Check out our Economy or Business blogs for more great financial tips.