7 Strategies To Help You Save Money On Shipping For Your Small Business


Expansion of a business is one of the most crucial goals of an organization. It is an important factor in tracking the progress of a company. However, the growth of a business involves various critical decisions.

Cost-saving is one critical aspect for any budding business, especially small businesses. One of the biggest cost-cutting challenges they face is shipping costs. Organizations often think of various strategies to save money on shipping. To save money on shipping container sizes when moving, consider pack strategically to maximize space within your chosen container. Use vacuum-sealed bags, stackable boxes, and disassemble furniture when possible.[lesser amount for small packaged goods.

One way to lower the expenses on shipping for small businesses is to hire solutions from third parties. There are many logistics and transportation platforms like FlagShip that provide excellent shipping solutions at the best prices.

The other way to save money is to follow numerous tips and tricks. This is a more convenient option for cutting small costs. The following section describes these hacks to maximize profits and minimize costs.

Look At The Most Effective Ways To Lower Shipping Costs For Small Businesses

The following points highlight some of the most impactful and easy ways to keep a check on shipping costs and reduce them.

Focus On Establishing Relationships


Small enterprises find it difficult to approach a carrier company due to their small scale of operations. The primary tip to save shopping costs is to set up good and friendly relations with the carrier or transportation carrier.

In this way, the carrier company will trust the organization more. As a result, it will help businesses achieve additional benefits such as discounts, bulk order benefits, etc. While selecting a carrier company, a person should analyze and compare the costs of different shipping companies to arrive at the most profitable shipping agent.

Providing Customer Preferred Shipping Options

Customers need the product on time with utmost safety. It depends on the company or manufacturer how they deliver. Customers do not think much about how it is transported but how the item or product is received. To successfully manage the delivery of the product, businesses often partner with third-party logistics, known as 3PL fulfillment. These 3PLs can offer technology and systems that enable companies to manage their inventory and orders.

In other words, enterprises can offer shipping options to customers. Through this mechanism, they can select shipping preferences according to their needs. For example, a cheaper and standard delivery will mean no tracking options, road delivery, etc.

Minimizing Chances Of Product Recall


Product recalls are one of the biggest disappointments for an eCommerce company. When a customer returns the product, it becomes difficult to manage the shipping costs. The best way to handle these is to draft shipping and return policies.

Moreover, if the small organization operates in international waters, it will become more hectic. It will consume more time and cost. In order to minimize cases of product recalls, companies should employ quality control tools and machines. When the quality of products improves, the product return chances decrease. Therefore, it is important to ensure a clear shipping policy and a streamlined process for product returns.

Effective Utilization Of Shipping Calculator

Many businesses have realized the real value of a shipping calculator. By using these calculators, they display the most beneficial shipping charges to the customers without losing them. The Charges are shown in such a way that it promotes transparency and an easy and realistic breakdown of shipping costs.

These calculators are highly advantageous as they can show different delivery charges where warehouses are placed for eg. If we are running in Bangalore then warehouses in Bangalore are strategically placed at variable locations. In this case, shipping charges will vary, and this calculator proves its importance.

Establish Pick-Up Points


Pick-up points are one of the most useful ways of saving money on shipping. These points refer to a particular spot for delivery where a person can collect their orders. In other words, these central locations are set up in different areas where the customers in that area can take their orders. It eliminates the door-to-door service. But it is a convenient option as a person is not required to travel long distances to pick up their order.

However, this technique is helpful when the organization has a large customer base in a particular area. If the target audience is scattered on a large scale, it might not be the right option. It helps businesses lower the frequency of round trips and save time.

Mindful Packaging Strategies

Packaging is a crucial aspect in deciding an organization’s overall shipping costs. When there are large containers or boxes, the carrier will charge a higher amount for shipment. On the other hand, carrier companies charge a lesser amount for small packaged goods.

Apart from this, if the goods are packaged in small boxes or containers, there will be larger volumes or units of goods accumulated in one shipment. As a result, fewer trips or shipments will be required to send the goods from one place to another. Therefore, small businesses should focus on their packaging principles.

Furthermore, packaging should be done with minimal filler material or empty spaces. They can also gather and consolidate various units in a single large container or box to accommodate as many units as possible.

Understanding The Components Of Shipping Charges


Many businesses fail to achieve efficiency and cost-effectiveness while dealing with the goods’ shipment. They are unaware of different aspects constituting the delivery charges. There are four major pillars or factors summing up overall shipping charges. These are mentioned hereunder:

  • Service and speed
  • Dimension and weight of the shipment
  • Delivery destination
  • Shipping volume or quantity

When the service and speed increase, the shipping charges or costs will drastically rise. It means that goods travel faster due to which customers will be more satisfied. The location of shipment also decides the total cost. Long distances between the warehouse and delivery location will lead to an increase in shipping costs.

After understanding these aspects, organizations should make adjustments in these factors to reduce the overall costs and maximize profits.

Key Takeaway

Shipping costs constitute the upper level or final costs of an organization. It is important to find different ways of cutting these costs. The tips and hacks mentioned above present a detailed guide on different possible ways of achieving efficiency while shipping goods to the final destination or warehouse.

Written by Kan Dail