Businesses of all sizes spend a large amount of their money on shipping. And, as it turns out, shipping is also one of the least efficient parts of running a business. It’s expensive and it takes forever and in the world of same-day shipping, small businesses are seriously struggling to keep up.
However, there are ways to cut costs when it comes to shipping. If you’re looking to get the cheapest shipping costs you can, read on to learn more.
1. Learn to Negotiate
You likely know by now that all shipping companies charge by volume. If you ship more, you pay less. However, if you’re a small business that deals a lot with FedEx or UPS, you might be able to talk them down a little.
At the end of the day, they want your business. The last thing they want is for you to take your shipping elsewhere. So if you let them know that the other guys are trying to get you to ship with them instead, they might try to sweeten the pot for their side by cutting your rates down a little bit.
Don’t be afraid to negotiate.
2. Ask Suppliers to Use Your Shipping Account Number
If you have a number of suppliers in the US, consider asking them to use your shipping account instead of their own. This can add to your volume of shipping and reduce your cost. However, it also stops other companies from secretly upping their shipping prices for no reason.
Put this requirement in your purchase order and see where it goes.
3. Use Your Carrier’s Packages
It might seem like a cheaper option to go with a box of your own, you might wind up facing unseen fees and charges because your box doesn’t meet their dimensional requirements.
This doesn’t have to be the more expensive option, either. If you can put your box into one of their boxes or envelopes, you might wind up saving yourself a lot of money.
4. Regional Carriers
While FedEx and UPS are the most popular national carriers out there, you don’t have to stick with them. Look around your area for local delivery services. You might not be able to get your package across the country, but if you have local deliveries, these could be the key you need to the cheapest shipping available.
Before you go with the big guys, check around in your area to see if you have any less expensive options closer to home.
5. Go Digital
Nowadays, you can do everything online. That includes your shipping.
The US Postal Service allows you to pay for your shipping online and includes free shipping, confirmation, and shipping supplies.
There are also services that allow you to print and send certified mail for a fraction of the price, all from the comfort of your home. To learn more about this practice, visit this blog.
6. Prepaid Shipping
Another way to save serious cash is to pay for a bunch of shipping up front at a discounted rate.
This isn’t an option for companies that ship packages with a wide variety of weights, however, if you know how much each one of your packages is going to weigh, prepaying for your shipping fees is the way to go.
7. 3rd Party Insurance
If you’re looking for insurance on your package, consider looking away from your shipping company. Most carriers ask for 80 cents per every $100 of insurance, which might not sound like a lot of money. However, when you consider that third-party companies often only charge you half that, you realize how quickly those savings can add up. This is especially helpful if you ship expensive items that need a lot of insurance.
8. Don’t Short Change Yourself
Before you bill your customers, you need to make sure that you understand exactly what shipping is going to cost. If your customers pay for shipping, don’t charge them until you know exactly how much it’s going to run you. Otherwise, you’re going to eat those fees yourself.
9. Hybrid Services
Many carriers offer a hybrid service where they pick up your package and deliver them to the post office and allow them to get the package to its final destination. This often comes with a slower delivery time, but the cost-benefit might outweigh that drawback.
With this method of shipping, there are certain criteria your package has to meet, like a specific volume, weight, and size. Check with your carrier to figure out what they require and whether or not this is the right option for you.
10. Association Discounts
Do you belong to an association within your industry? If so, check with them to see if they have a working relationship with a carrier. Sometimes, these associations come with discounts on your shipping fees. Depending on how big your association is, you might be able to score yourself 50% discounts on some services with FedEx and UPS.
Get the Cheapest Shipping
The last thing you want to do as a business owner is shell out a ton of money for shipping.
However, customers, these days are accustomed to incredibly fast, free shipping thanks to the big box companies that can afford to provide these services.
In order to make sure that you get the cheapest shipping cost available to you, follow these steps. If your customers don’t pay for shipping, make sure that your prices reflect that adequately so that you don’t wind up losing out on your profit in order to provide this service.
For more information about running a business in the tech world, visit us today.
