How to Reduce Shipping Costs for Small Businesses

Retail eCommerce

How to Reduce Shipping Costs for Small Businesses

With the increasing popularity of the eCommerce industry, many people have started their own businesses. But in the tough market, it has been very difficult for small businesses to compete with big enterprises. Although their product may have more value than the giant enterprise, they don’t have a larger audience or their marketing strategy, thus, it is hard for them to rise up to their level.

However, the one thing that holds back small businesses is the burden of shipping costs. Shipping is the most important thing in the eCommerce industry. Giant enterprises have a huge amount of deliveries that do not affect them. But small businesses are not that privileged. Thus, it is important for them to plan their shipping strategies to reduce their costs.

Here are a few tips you can use to reduce your shipping cost.

  • Reduce the weight

Your entire shipping cost depends on the weight of the packaging. Thus, it is important to choose a lightweight packaging material, which is very cost-effective. There are three ways you can reduce the weight: use a corrugated box, light-weight packaging material, and a custom shipping package.

A corrugated box is lighter than the usual cardboard box as it is made of a few layers of materials that have a fluted medium in between instead of a single sheet. One of the best ways to reduce packaging weight is to use custom shipping packages. You can customize your shipping box according to the sizes of your products. This way, you will need less material and reduce your costs.

  • Use flat-rate shipping

Flat-rate shipping means a fixed shipping charge for any package regardless of the size, weight, and shape. This way, you can plan your shipping cost in advance and set up your financial planning. Additionally, you can set a fixed shipping charge for a specific area, or you can fix a shipping rate for specific products according to their weight and sizes.

For example, if you have a book business, you can offer fixed shipping charges for hardcover books and softcover books.

  • Be aware of the latest price change

Many shipping companies keep changing their shipping prices after some interval. It gets affected due to the fuel prices or changes in labor costs. Therefore, it is important to keep in touch with your shipping partner and be updated with all the price changes.

Also, some shipping companies change their policies around the holiday season, so keep an eye out for that.

  • Offer local deliveries

If you have an offline store, you can offer local deliveries and in-store pickup to cut off the shipping charges. Your customers can buy your product online, and you can deliver them locally with a minor delivery charge. It is beneficial for both customers and businesses. It will help you gain their trust and build a healthy relationship.

By offering local deliveries, you can attract more local customers, improve your customer experience, and enhance your sale, resulting in a hefty profit.

By implementing a few tactics, you can reduce your shipping cost and increase the profit margin. This way, you can improve your customer relationship and attract new potential customers.

Looking for a way to enhance your current eCommerce store? Hire experts from USA commerce and get the best guidance. Contact us to start your project right away.

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