5 ways to reduce shipping costs for your business

In a business dealing with selling a physical product, you cannot escape shipping costs. In the past few years, the eCommerce sector saw a huge boom. With this boom, the demand for logistic services has undoubtedly increased.

The eCommerce sector has given an opportunity for the logistic sector to grow. However, at the same time, the logistics sector is struggling to meet the increasing demand for shipment data. As a result, the shipment rate has increased and it is now essential for businesses to find ways to reduce the shipment cost in order to maximise profit. Here are five ways to reduce this shipment cost for your business.

Choose no rush delivery whenever possible

A product’s shipping cost depends on how urgently the product needs to be delivered. An urgent shipment requires an urgent pickup. Therefore it is natural for such pickup to have a higher cost. If your customer is not expecting a super fast delivery as offered by YunExpress, always go for no rush delivery. However, to avoid any significant delay in the shipment timing, start processing the order as soon as you receive it.

The time a business manages to free before product dispatch can be utilised during shipment duration. Many logistic companies such as China Post offer standard or no rush delivery. Whenever possible, always choose this option.

Reduce the weight of the package

Another important determinant of the shipping cost is the weight of the package. The heavier the package, the more the shipment costs. The business cannot reduce the weight of the product for obvious reasons. However, it can reduce the cost by choosing the right packaging material that you use to pack the parcel.

It is essential to go for light packaging material to reduce the weight of the package as much as possible. Further, avoid using large boxes to pack small items. The dimensions of the products are considered in the shipping charge too. Therefore, go for the correct dimensions for packing the package. You can also go for the packages that the logistic companies give. It can highly reduce the shipment cost.

Look for options

There are many carrier options available out there. Sticking to the first shipping company you encounter is not a wise decision. It is essential to look out for all the options available. Draw a comparison between the shipment charges of all the short-listed companies. Then go for the carrier option that charges the least shipment cost. However, while choosing the shipping company, ensure that they are trustworthy and maintain a certain standard while fulfilling the order.

Choose hybrid services

Prominent logistic companies offer hybrid services, and you can use this service to reduce the shipment cost by a large margin. Hybrid services are cheaper. It is important to note that the delivery time will be slower than the standard service, but at the same time, it is a wonderful way of reducing the shipment cost for your eCommerce business.

Educate your customers

Businesses should encourage the customers to place their orders as early as possible, especially during the peak season when the stone needs to deal with high volume. It is important to educate the customers about the importance of ordering early so that the product can be delivered on time without any additional cost.

Surveys have indicated that most cart abandonment occurs due to additional charges such as shipping costs. If the business educates the customers properly about the shipping cost, it can avoid this risk. We recommend clearly stating the shipping policy on the website to avoid any unwanted circumstances.

Also, if the business is not providing a free shipment to the customer, it is critical to ensure that the shipping cost that the customer has to incur is not much. It is a known fact that customers do not want to use their money on shipping costs.

A business needs to increase its profit margin without compromising the customer experience. The scope to increase profit margin is minimal in most cases. However, shipping is an element of the eCommerce business where through a well-informed decision, it is absolutely possible to increase the business’s profit by a considerable margin.

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