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Best ways to optimize its shipping costs

Zoé Kahn

Running a business can be expensive. There are a large number of expenses that must be addressed, including some reoccurring costs. One of these reoccurring expenses is the cost of shipping. This will be applied every time you need to bring an order of supplies in. If brands and retailers can save money on shipping costs, it can help their business become more profitable in the long run.

Dropshipping

One method that e-commerce companies may be able to implement is called dropshipping. This is when the store does not keep the product in their own inventory, but they allow the customer to purchase the product directly from the manufacturer. This will result in you not having to pay the cost of shipping. However, the manufacturer will receive a commission for any sales that occur this way.

Explore different carriers

Typically, bulk shipping is always going to be more cost effective. This is because you just have to pay for shipping once, and not multiple times for each order. However, you also have the ability to negotiate with different carriers to find the best price. If you are a frequent customer, the carrier will be more likely to want to keep you happy. By working with the carrier, you and them both end up profiting.

Pay attention to the packaging

Some retailers do not realize that by using their own packaging, they could be incurring unnecessary charges. If the packaging exceeds the size that the carrier has set, they will add charges to your order. Therefore, you could try using the same packaging that is provided by the carrier. This will ensure that the package is not too large.

Charge the customer for the shipping costs

If you have a customer who is requesting a special order, it is likely that you will need to bring in extra materials. Take the cost of shipping and add it to the customer’s order, so you do not need to handle the extra charges. Be sure to let the customer know that their bill will be a little higher because it is not a standard order.

Use regional carriers

Some carriers will work only in a certain area range. They are more limited than the wider known carriers, however, they may offer a lower price. It is worth investigating local delivery companies because they will save you costs in the long run. However, this method will not work if you require shipping services from far away.

It is easy to forget the little costs that add to your overall expenses. Costs that are essential to your business will continue reoccurring on a frequent basis. It is a good idea to take a look at your business operations and see where you can cut back, even in small ways. For shipping costs, the good news is that many ways exist (according to Entrepreneur). This will reduce your operation expenses, and result in more revenue for you in the long term.

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