You're Probably Overspending on Shipping - Let's Change That
E-commerce companies often pay too much for shipping without realizing it. Shipping price increases happen every year. It’s tough to keep up with postal price changes. When you pay too much for shipping, it silently eats into your profit. For online retailers, it’s like throwing hard-earned money out the window. When you have an online business, every dollar counts. Keeping an eye on what you spend on shipping labels and supplies will maximize your profit.
Save on Shipping Costs for Your Online Business
Shipping products to customers can be one of the largest ongoing costs for ecommerce businesses. But with some smart strategies, you can reduce your shipping spend and keep more profit. Here are tips to save on shipping:
Use USPS Ground Shipping
For lightweight packages under 1 lb, USPS First Class mail is the most affordable option. Rates start at around $2.80. For heavier packages up to 70 lbs, USPS Priority Mail offers cost-effective shipping with tracking and delivery in 1-3 business days.
Right-Size Packaging
Oversized packaging leads to higher dimensional weight charges. Carefully measure products and use the smallest boxes and mailers possible. Bubble mailers and poly mailers are lightweight and take up less space than boxes. Consider ditching boxes altogether for envelope-style mailers.
Order Free Supplies
USPS, UPS, FedEx and DHL all offer free shipping supplies like boxes, bubble mailers, and envelopes. Order only what you need so you can use carrier-branded packaging and qualify for the best rates.
Buy Supplies in Bulk
Once you know your average monthly volume, consider buying bubble mailers, boxes and other supplies in bulk. Buying larger quantities can save up to 40%. Shop around for the best deals on quality supplies.
Use a Third-Party Logistics (3PL) Provider
Outsource shipping, warehousing and order fulfillment to a 3PL like Simpl. Large 3PLs ship high volumes every day so they receive steep discounts that they can pass onto clients. And they have warehouses strategically located to reduce miles and transit days.
With an optimized shipping strategy, ecommerce businesses can reduce their shipping rates and provide faster deliveries to keep customers happy.
Next article: How to Get Free Shipping Supplies from USPS, UPS, FedEx, and DHL
FAQs
What is the most affordable shipping option for lightweight packages?
For lightweight packages under 1 lb, USPS First Class Mail offers the most affordable shipping rates. Prices start at around $2.80.
Should I use USPS Ground or Priority Mail for heavier packages?
For heavier packages up to 70 lbs, USPS Priority Mail is recommended. It offers cost-effective shipping with tracking and 1-3 day delivery times.
How can packaging help me save on shipping?
Oversized packaging leads to much higher dimensional weight charges. Right-size your packaging by using the smallest boxes, bubble mailers and poly mailers possible for your products.
Where can I get shipping supplies for free?
USPS, UPS, FedEx and DHL all provide some free shipping supplies like boxes and bubble mailers. Order only what you need to use their services.
Is buying supplies in bulk worthwhile?
Once you know your average volume needs, buying boxes, bubble mailers and other supplies in bulk quantities can save up to 40%. Shop around for good deals.
How can a 3PL provider reduce my shipping costs?
A third-party logistics provider ships high volumes daily, earning them steep carrier discounts. Their centralized warehouses also reduce zone charges and transit days.
What other tips can reduce my ecommerce shipping costs?
Consolidate orders before shipping, set up an account with USPS Commercial Base Pricing, compare rates across carriers, and consider adding a small handling fee.
