{"id":30602,"date":"2019-10-15T15:11:51","date_gmt":"2019-10-15T07:11:51","guid":{"rendered":"https:\/\/zegal.com\/?p=30602"},"modified":"2023-01-18T14:00:38","modified_gmt":"2023-01-18T06:00:38","slug":"small-business-logistics-6-ways-to-save-big-money-on-shipping-costs","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-hk\/blog\/post\/small-business-logistics-6-ways-to-save-big-money-on-shipping-costs\/","title":{"rendered":"Small Business Logistics: 6 Ways to Save Big Money on Shipping Costs"},"content":{"rendered":"<div id=\"contentsContainer\">\n<div id=\"contents\">\n<figure id=\"attachment_30603\"  class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-30603\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/10\/chuttersnap-9cCeS9Sg6nU-unsplash-1024x683.jpg\" alt=\"\" width=\"1024\" height=\"683\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/10\/chuttersnap-9cCeS9Sg6nU-unsplash-1024x683.jpg 1024w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/10\/chuttersnap-9cCeS9Sg6nU-unsplash-300x200.jpg 300w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/10\/chuttersnap-9cCeS9Sg6nU-unsplash-768x512.jpg 768w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/10\/chuttersnap-9cCeS9Sg6nU-unsplash-640x427.jpg 640w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/10\/chuttersnap-9cCeS9Sg6nU-unsplash-1200x800.jpg 1200w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/10\/chuttersnap-9cCeS9Sg6nU-unsplash-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 770px\" \/><figcaption class=\"wp-caption-text\">Photo by chuttersnap on Unsplash<\/figcaption><\/figure>\n<p id=\"E153\" class=\"qowt-stl-Heading1\">\n<p id=\"E161\"><span id=\"E162\" class=\"qowt-font3-Calibri\">Most small businesses tend to focus on the sale. However, getting customers to the checkout page on an e-commerce site is not where brand loyalty and the customer experience is defined.<\/span><span id=\"E163\" class=\"qowt-font3-Calibri\"> That is built in a business\u2019s e-commerce delivery strategy.<\/span><\/p>\n<p id=\"E166\"><span id=\"E167\" class=\"qowt-font3-Calibri\">The post-purchase experience is more impactful than ever before.<\/span><span id=\"E168\" class=\"qowt-font3-Calibri\"> Shipping services play a major role in customer retention, customer expectations, and customer satisfaction. A negative shipping<\/span><span id=\"E169\" class=\"qowt-font3-Calibri\"> experience can quickly erode brand trust and affect your bottom line.<\/span><\/p>\n<p id=\"E172\"><span id=\"E173\" class=\"qowt-font3-Calibri\">However, if not managed correctly, shipping can be a costly expense. For small businesses, this is a difficult task to manage, particularly as your business expands into <\/span><a id=\"E174\" contenteditable=\"false\" href=\"https:\/\/www.shipafreight.com\/knowledge-series\/international-ecommerce\" target=\"_blank\" rel=\"noopener noreferrer\"><span id=\"E175\" class=\"qowt-font3-Calibri\">international e-commerce<\/span><\/a><span id=\"E176\" class=\"qowt-font3-Calibri\">.<\/span><\/p>\n<p id=\"E179\"><span id=\"E180\" class=\"qowt-font3-Calibri\">And with large enterprises like <\/span><span id=\"E182\" class=\"qowt-font3-Calibri\">Walmart<\/span><span id=\"E184\" class=\"qowt-font3-Calibri\"> or Amazon offering free shipping or one-day shipping, <\/span><span id=\"E186\" class=\"qowt-font3-Calibri\">many<\/span><span id=\"E188\" class=\"qowt-font3-Calibri\"> small businesses ask themselves, <\/span><span id=\"E189\" class=\"qowt-font3-Calibri\">\u201cHow can I reduce sh<\/span><span id=\"E190\" class=\"qowt-font3-Calibri\">ipping costs?\u201d<\/span><\/p>\n<p id=\"E193\"><span id=\"E194\" class=\"qowt-font3-Calibri\">To effectively compete and ship for success, here are <\/span><span id=\"E195\" class=\"qowt-font3-Calibri\">six cost-saving solutions<\/span><span id=\"E196\" class=\"qowt-font3-Calibri\"> that businesses can implement today to reduce their shipping expenditures.<\/span><\/p>\n<h4 id=\"E199\" class=\"qowt-li-0_0 qowt-list qowt-stl-Heading2\"><span id=\"E202\" class=\"qowt-font3-Calibri\">1. Analyze your shipping requirements<\/span><\/h4>\n<p id=\"E204\"><span id=\"E205\" class=\"qowt-font3-Calibri\">One of the first things to do as a small busin<\/span><span id=\"E206\" class=\"qowt-font3-Calibri\">ess is to challenge all of your existing assumptions regarding shipping. Local, regional, and international shipping all have different shipping requirements. <\/span><\/p>\n<p id=\"E208\"><span id=\"E209\" class=\"qowt-font3-Calibri\">What might work locally <\/span><span id=\"E210\" class=\"qowt-font3-Calibri\">may be far too expensive or time-consuming to work internationally.<\/span><\/p>\n<p id=\"E213\"><span id=\"E214\" class=\"qowt-font3-Calibri\">Don\u2019t assume shipping methods or freight categories all work the same. For example, air freight is speedier than ocean freight, but that speed comes at a cost. If urgency of delivery is not an issue and your business is shipping heavier cargo, then ocean f<\/span><span id=\"E215\" class=\"qowt-font3-Calibri\">reight is right for you.<\/span><\/p>\n<p id=\"E218\"><span id=\"E219\" class=\"qowt-font3-Calibri\">Similarly, <\/span><span id=\"E221\" class=\"qowt-font3-Calibri\">consider the shipping materials your products need<\/span><span id=\"E222\" class=\"qowt-font3-Calibri\"> and the costs associated with <\/span><span style=\"font-size: inherit;\">that.<\/span><\/p>\n<\/div>\n<\/div>\n<div id=\"contentsContainer\">\n<div id=\"contents\">\n<p id=\"E225\"><span id=\"E226\" class=\"qowt-font3-Calibri\">Reducing the weight of your packages can significantly lower shipping costs. If the products were damaged during shipment in the <\/span><span id=\"E227\" class=\"qowt-font3-Calibri\">past, a product redesign may better protect the product during shipping and also provide cost-saving benefits.<\/span><\/p>\n<p id=\"E230\"><span id=\"E231\" class=\"qowt-font3-Calibri\">Evaluating your primary shipping patterns will help you better project your freight shipping requirements. Knowing your requirements and understanding shipping charges will give you negotiating power to lower your freight shipping rates.<\/span><\/p>\n<h4 id=\"E233\" class=\"qowt-li-0_0 qowt-list qowt-stl-Heading2\"><span id=\"E236\" class=\"qowt-font3-Calibri\">2. Pass on the costs<\/span><\/h4>\n<p id=\"E238\"><span id=\"E239\" class=\"qowt-font3-Calibri\">Once research on shipping requirements is done, it&#8217;s time to address a core component of shipping: free shipping offers.<\/span><\/p>\n<p id=\"E242\"><span id=\"E243\" class=\"qowt-font3-Calibri\">Free shipping is ubiquitous in the world of e-commerce. <\/span><span id=\"E244\" class=\"qowt-font3-Calibri\">Online customers have now come to expect free shipping as <\/span><span id=\"E245\" class=\"qowt-font3-Calibri\">standard. But often, small businesses do not have the same margins as a large company to absorb this cost.<\/span><\/p>\n<p id=\"E248\"><span id=\"E249\" class=\"qowt-font3-Calibri\">One strategy for offering free shipping is to slightly increase prices. Including the cost of shipping into the total price of the product will hel<\/span><span id=\"E250\" class=\"qowt-font3-Calibri\">p offset the cost of free shipping. Your product pricing should state as such.<\/span><\/p>\n<p id=\"E253\"><span id=\"E254\" class=\"qowt-font3-Calibri\">If building shipping into the price limits your business\u2019s ability to keep prices competitive, another option is to<\/span><span id=\"E255\" class=\"qowt-font3-Calibri\"> include stipulations to your free shipping offer. <\/span><\/p>\n<p id=\"E257\"><span id=\"E258\" class=\"qowt-font3-Calibri\">Conditions<\/span><span id=\"E259\" class=\"qowt-font3-Calibri\"> for free shipping offers can include:<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"list-style-type: circle;\">\n<li id=\"E260\" class=\"qowt-li-1_0 qowt-list\"><span id=\"E261\" class=\"qowt-font3-Calibri\">Orders over a designated amount<\/span><\/li>\n<li><span style=\"font-size: inherit;\">Orders over a specific number of items<\/span><\/li>\n<li><span style=\"font-size: inherit;\">Domestic orders<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p id=\"E267\"><span id=\"E268\" class=\"qowt-font3-Calibri\">Offering free shipping to pre-existing customers can encourage repeat business. Providing a \u201cfree shipping\u201d discount code or coup<\/span><span id=\"E269\" class=\"qowt-font3-Calibri\">on can be a great way to drive customer loyalty and conversions.<\/span><\/p>\n<h4 id=\"E271\" class=\"qowt-li-0_0 qowt-list qowt-stl-Heading2\"><span id=\"E274\" class=\"qowt-font3-Calibri\">3. Trim excess weight<\/span><\/h4>\n<\/div>\n<\/div>\n<div id=\"contentsContainer\">\n<div id=\"contents\">\n<p id=\"E277\"><span id=\"E278\" class=\"qowt-font3-Calibri\">The weight, size, and dimensions of your package will determine shipping costs. The heavier a package is, the more it will cost to ship. Avoid wasting space and incurring<\/span><span id=\"E279\" class=\"qowt-font3-Calibri\"> unnecessary costs by reviewing your current packaging methods.<\/span><\/p>\n<p id=\"E282\"><span id=\"E283\" class=\"qowt-font3-Calibri\">If a lightweight product can be packed into a tighter package, this will reduce costs. This is particularly useful if you ship many lightweight products via air freight. <\/span><\/p>\n<p id=\"E286\"><span id=\"E287\" class=\"qowt-font3-Calibri\">As mentioned, a <\/span><span id=\"E288\" class=\"qowt-font3-Calibri\">product redesign can be an ongoing cost-saving measure at multiple points. <\/span><\/p>\n<p id=\"E290\"><span id=\"E291\" class=\"qowt-font3-Calibri\">A product finished with a lighter, higher-performance material can result in a base reduction in material cost. This opens up freight shipping options and allows you to ship more <\/span><span id=\"E293\" class=\"qowt-font3-Calibri\">product<\/span><span id=\"E295\" class=\"qowt-font3-Calibri\"> per container at a lower cost.<\/span><\/p>\n<p id=\"E298\"><span id=\"E299\" class=\"qowt-font3-Calibri\">Consider investing in a shipping scale to better calculate shipping costs. This will improve the efficiency of your operation and minimise any unexpected costs.<\/span><\/p>\n<figure id=\"attachment_30609\"  class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-30609\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/10\/bench-accounting-MGaFENpDCsw-unsplash-1024x684.jpg\" alt=\"\" width=\"1024\" height=\"684\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/10\/bench-accounting-MGaFENpDCsw-unsplash-1024x684.jpg 1024w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/10\/bench-accounting-MGaFENpDCsw-unsplash-300x200.jpg 300w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/10\/bench-accounting-MGaFENpDCsw-unsplash-768x513.jpg 768w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/10\/bench-accounting-MGaFENpDCsw-unsplash-640x428.jpg 640w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/10\/bench-accounting-MGaFENpDCsw-unsplash-1200x802.jpg 1200w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/10\/bench-accounting-MGaFENpDCsw-unsplash-1920x1283.jpg 1920w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 770px\" \/><figcaption class=\"wp-caption-text\">Photo by Bench Accounting on Unsplash<\/figcaption><\/figure>\n<h4>4. Save on packing materials<\/h4>\n<p id=\"E306\"><span id=\"E307\" class=\"qowt-font3-Calibri\">Another shipping expense often forgotten by businesses is packaging<\/span><span id=\"E308\" class=\"qowt-font3-Calibri\">. The more your business scales up, the more products it will have to ship out. If this expense isn\u2019t carefully managed, the heavy cost may impact your bottom line.<\/span><\/p>\n<p id=\"E311\"><span id=\"E312\" class=\"qowt-font3-Calibri\">If are unable to retool your product, <\/span><strong><span id=\"E313\" class=\"qowt-font3-Calibri\">reducing packaging is a great alternative to saving<\/span><\/strong><span id=\"E314\" class=\"qowt-font3-Calibri\"><strong> on costs<\/strong>.<\/span><\/p>\n<p id=\"E317\"><span id=\"E318\" class=\"qowt-font3-Calibri\">There are several ways to reduce packaging, regardless of your industry. Recycle and reuse incoming packaging material that you receive. Whether <\/span><span id=\"E320\" class=\"qowt-font3-Calibri\">it&#8217;s<\/span><span id=\"E322\" class=\"qowt-font3-Calibri\"> boxes or filling material, reusing packing material when possible <\/span><span id=\"E323\" class=\"qowt-font3-Calibri\">will amount to substantial <\/span><span id=\"E324\" class=\"qowt-font3-Calibri\">savings.<\/span><\/p>\n<p id=\"E327\"><span id=\"E328\" class=\"qowt-font3-Calibri\">If branding is an issue and reusing boxes won\u2019t work, consider buying boxes in bulk, but be thoughtful. If your product or brand goes through a redesign, your packaging material may not align with your new design. Buy in small bulk batches or pl<\/span><span id=\"E329\" class=\"qowt-font3-Calibri\">ain brown boxes to avoid wastage.<\/span><\/p>\n<p id=\"E332\"><span id=\"E333\" class=\"qowt-font3-Calibri\">As a rule, <\/span><span id=\"E335\" class=\"qowt-font3-Calibri\">never prioritise savings over quality.<\/span><span id=\"E336\" class=\"qowt-font3-Calibri\"> Doing so can compromise the structural integrity of your packaging. This can damage goods during transit, which results in unsatisfactory customer experience.<\/span><\/p>\n<\/div>\n<\/div>\n<div id=\"contentsContainer\">\n<div id=\"contents\">\n<h4 id=\"E338\" class=\"qowt-li-0_0 qowt-list qowt-stl-Heading2\"><span id=\"E341\" class=\"qowt-font3-Calibri\">5. Negotiate <\/span><span id=\"E342\" class=\"qowt-font3-Calibri\">with multiple carriers<\/span><\/h4>\n<p id=\"E344\"><span id=\"E345\" class=\"qowt-font3-Calibri\">When shipping, especially internationally, don\u2019t just settle for the first carrier you come across. Do your research on the various carriers that operate within your shipping lane or region. A quick and hassle-free way to do this is<\/span><span id=\"E346\" class=\"qowt-font3-Calibri\"> by using an <\/span><a id=\"E347\" contenteditable=\"false\" href=\"https:\/\/www.shipafreight.com\/learn-more\/how-it-works\" target=\"_blank\" rel=\"noopener noreferrer\"><span id=\"E348\" class=\"qowt-font3-Calibri\">instant online freight quotes<\/span><\/a><span id=\"E349\" class=\"qowt-font3-Calibri\"> platform.<\/span><\/p>\n<p id=\"E352\"><span id=\"E353\" class=\"qowt-font3-Calibri\">This saves time and allows you to find the best rates for your specific shipping costs. Use a combination of rate and services to<\/span><span id=\"E354\" class=\"qowt-font3-Calibri\"> determine the right carrier for your needs. Even if your business already has an established relationship with one carrier, <\/span><span id=\"E355\" class=\"qowt-font3-Calibri\">you can use that history to negotiate better rates.<\/span><\/p>\n<p id=\"E358\"><span id=\"E359\" class=\"qowt-font3-Calibri\">Using an instant online freight quote system will<\/span><span id=\"E360\" class=\"qowt-font3-Calibri\"> allow you to find the best <\/span><span id=\"E361\" class=\"qowt-font3-Calibri\">rates for your specific shipping costs.<\/span><span id=\"E362\" class=\"qowt-font3-Calibri\"> Once you\u2019ve found a few carriers that operate in your shipping zone, don\u2019t be afraid to negotiate. <\/span><\/p>\n<p id=\"E365\"><span id=\"E366\" class=\"qowt-font3-Calibri\">If your business is shipping in low volumes, it may be worth looking into regional carriers or using hybrid servi<\/span><span id=\"E367\" class=\"qowt-font3-Calibri\">ces. This will allow you to provide the same service to your customers at a reduced cost.<\/span><\/p>\n<h4 id=\"E369\" class=\"qowt-li-0_0 qowt-list qowt-stl-Heading2\"><span id=\"E372\" class=\"qowt-font3-Calibri\">6. Consider insurance<\/span><\/h4>\n<p id=\"E374\"><span id=\"E375\" class=\"qowt-font3-Calibri\">Shipping insurance is a necessary service your business needs to protect its assets from any damage or liabilities that occur during transit. While some carriers will often provide insurance as a default, this complimentary service only covers packages up <\/span><span id=\"E376\" class=\"qowt-font3-Calibri\">to a certain declared value.<\/span><\/p>\n<p id=\"E379\"><span id=\"E380\" class=\"qowt-font3-Calibri\">Most small businesses do not need more insurance than what\u2019s already been provided.<\/span><span id=\"E381\" class=\"qowt-font3-Calibri\"> This can save on costs tremendously. However, if you ship big-ticket or fragile items, it may be worth purchasing additional shipping insurance.<\/span><\/p>\n<p id=\"E384\"><span id=\"E385\" class=\"qowt-font3-Calibri\">Insurance should always be purchased when shipping internationally. International shipments go through<\/span><span id=\"E387\" class=\"qowt-font3-Calibri\"> several parties before reaching a final destination. This means that the risk is higher for loss or breakage during transit.<\/span><\/p>\n<p id=\"E390\"><span id=\"E391\" class=\"qowt-font3-Calibri\">Additional insurance coverage should also be considered during busy holiday seasons to avoid <\/span><span style=\"font-size: inherit;\">customer disappointment.<\/span><\/p>\n<\/div>\n<\/div>\n<div id=\"contentsContainer\">\n<div id=\"contents\">\n<h4 id=\"E394\" class=\"qowt-stl-Heading2\"><span id=\"E397\" class=\"qowt-font3-Calibri\">Conclu<\/span><span id=\"E398\" class=\"qowt-font3-Calibri\">sion<\/span><\/h4>\n<p id=\"E401\"><span id=\"E402\" class=\"qowt-font3-Calibri\">Being able to effectively manage the cost of shipping will go a long way in improving your bottom line. Not only will the right delivery strategy benefit operational costs, but it will also contribute to delighting your customers. And a happy custom<\/span><span id=\"E403\" class=\"qowt-font3-Calibri\">er is one that drives loyalty and repeat purchases.<\/span><\/p>\n<p id=\"E408\"><em><strong><span id=\"E409\" class=\"qowt-font3-Calibri\">Paul <\/span><span id=\"E411\" class=\"qowt-font3-Calibri\">Rehmet<\/span><span id=\"E413\" class=\"qowt-font3-Calibri\"> is the Chief Product Officer for <\/span><span id=\"E415\" class=\"qowt-font3-Calibri\">Shipa<\/span><span id=\"E417\" class=\"qowt-font3-Calibri\"> Freight. He is responsible for translating the company&#8217;s vision into an easy-to-use online freight platform for its customers. In his 25-yea<\/span><span id=\"E418\" class=\"qowt-font3-Calibri\">r career, Paul has held various technology leadership positions with early-stage startups and Fortune 500 companies including Unisys, Destiny Web Solutions, and US Airways.<\/span><\/strong><\/em><\/p>\n<p class=\"p1\" style=\"text-align: center;\"><b><i>This article does not constitute legal advice.<\/i><\/b><\/p>\n<p class=\"p2\" style=\"text-align: center;\"><i>The opinions expressed in the column above represent the author\u2019s own.<\/i><\/p>\n<p class=\"p3\" style=\"text-align: center;\"><span class=\"s1\"><a href=\"https:\/\/register.zegal.com\/\"><b>Start managing your legal needs with Zegal today<\/b><\/a><\/span><\/p>\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/how-to-set-up-and-maintain-a-budget-for-your-retail-business\/\">READ MORE: How to Set Up and Maintain a Budget For Your Retail Business<\/a><\/p>\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/6-legal-dangers-for-e-commerce-businesses-to-watch-out-for\/\">RELATED READING: 6 Legal Dangers For E-Commerce Businesses To Watch Out For<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Most small businesses tend to focus on the sale. However, getting customers to the checkout page on an e-commerce site is not where brand loyalty and the customer experience is defined. That is built in a business\u2019s e-commerce delivery strategy. The post-purchase experience is more impactful than ever before. Shipping services play a major role [&hellip;]<\/p>\n","protected":false},"author":77,"featured_media":30603,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":5,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"categories":[14278,133],"tags":[6508,8938,8962,6510,16,10307],"usecases":[13702],"businesstypes":[],"country":[],"class_list":["post-30602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-management","category-startup","tag-business","tag-e-commerce","tag-shipping","tag-sme","tag-startups","tag-z-syndicate","usecases-uncategorised"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Small Business Logistics: 6 Ways to Save Big Money on shipping<\/title>\n<meta name=\"description\" content=\"There are several ways you can shave savings off your shipping fees when running an e-commerce business. Here&#039;s tips from the experts on how\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/zegal.com\/en-hk\/wp-json\/wp\/v2\/posts\/30602\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Small Business Logistics: 6 Ways to Save Big Money on Shipping Costs\" \/>\n<meta property=\"og:description\" content=\"There are several ways you can shave savings off your shipping fees when running an e-commerce business. 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