For any small or medium scale business companies, shipping cost may affect the profitability, as it is a cost that you cannot ignore. However, there are many ways and means available by which you can reduce your shipping cost.
In this small write-up, we shall discuss about few ways on how to save on shipping costs so that you can improve your profit.
- Discuss and negotiate with different carriers
All shipping companies have different norms while offering discounts for bulk shipping. Therefore, if you know about that information then it can help you to choose the right carrier who offer you better price.
- Persuade your suppliers to use account number while shipping
If all your suppliers start using your shipping account number of any carrier then naturally your account will show up providing more businesses. This will help you to negotiate better price from them.
- Use the carrier’s packaging
If your packaging dimension exceeds the size regulation then better use the packaging provided by the carrier which will reduce your dimensional fees.
- Look for regional carrier
Most of the regional carrier provides almost same service like any big carrier companies at much reduced charges.
- Prefer online shipping
If you prefer online shipping then also you can save considerable amount of shipping cost.
- Try to invest in prepaid shipping
If you prefer to do prepaid shipping then they offer certain discount thereby saving on shipping cost. All that you need to do is buy few shipping labels and affix them whenever you are sending any item. This type of idea works best if you are sure that you are going to ship similar item repeatedly for your subsequent shipping.
- Buy any third-party insurance
Often if you prefer not to insure by carriers and instead of that prefer few third parties to buy insurance for your goods then too you can save some amount.
- Transfer all the shipping cost on your customers.
There are many different extra charges that you need to pay and therefore if you can negotiate with your customer so that he bears these extra costs then you can reduce some burden.
- Try to consider hybrid services
If slow delivery is not an issue with your customer then you can prefer hybrid services for shipment which may cost almost half of any other normal carrier services.
- Try to obtain association discounts
If your industrial association membership can offer certain discounts for shipment then try to explore it.