This is the busiest time of year for e-commerce sellers trying to fulfill orders for customers in a timely fashion. Many times, these small companies or even larger ones, overlook the opportunity to save money on the shipping end of the transactions. Shipping costs vary by country and state, including restrictive costly requirements or variations in the pricing. There are some ways that you can minimize your shipping budget by taking advantage of a few strategies.
Use Bundling Techniques
Many times the cost of shipping items is determined by weight and the number of packages. You can leverage the optimum price by finding ways to combine items into one package. By offering bundling discounts to customers, you are saving them money and cutting down on your own shipping costs. When promoting your products, show them with other products that would make sense for the customer to purchase together. As you minimize the number of individual packages, you are saving yourself countless dollars, which add up.
Target Strategically
The cost of doing business in the shipping industry can vary greatly from state to state or continent. It is important to research these charges as well as other considerations such as strict requirements or costly surcharges before targeting a place for promotion. North Americans can ship items less expensively to Canada or Mexico or even to the United States. Look at all the costs of where your target, such as tariffs and customs, which can vary. It may save you money to saturate one area where the shipping is reasonable than to promote your product everywhere and losing profits to hidden shipping costs.
Consider Outsourcing Your Shipping
There are a wide variety of companies that will fulfill and ship your products less expensively than you can. These fulfillment centers charge a flat fee and with their bulk discount, they can distribute your products cheaper. This also cuts down on time devoted to the logistics and transportation, which also saves you money. Fulfillment centers have a streamlined process that ensures the most cost-effective means of delivery. Just a short amount of research could save you substantially.
Consider Free or Inexpensive Packing Materials
The weight or size of a package can significantly affect the price of shipping. While it is very important for you to pack things safely, there are a variety of light materials that could suffice, which would save you money. Research the types of packing material that make work for you and uses the most cost-effective alternative. Some places even offer free packing materials and something just as simple as changing your packing material could greatly affect your costs and profits.
In the fast-paced world of e-commerce, you should take advantage of every option to make you more competitive in the online world. Research can open up opportunities to save money and to make your company more cost effective. As you save money, you can offer savings and better quality to your customers, which improves retention and loyalty of your product.
Strategic targeting for promotions based on company friendly regulations helps you to find the best market for shipping supplies at the most reasonable price. Knowing your territories and the cost of doing business is imperative to being successful. Why fight upstream against almost impossible requirements or heavy tariffs, when there are places that welcome you with relaxed regulations and encourage your business.
Knowledge can be the most important asset to a business and your shipping information only helps you offer a less expensive price to customers who will return because of the value they get for their dollar. Don’t overlook shipping costs in your efforts to streamline your company.
