It is no secret that small businesses face many challenges as they look to compete with the big guns. Learning how to tackle these challenges is critical if you want your company to succeed. Amongst the many issues you face, there is an ongoing one that can cause a lot of problems. As the title suggests, we are talking about shipping costs.
If your business has to send products to customers, it will cost money. Even if you did this yourself, you would spend money on fuel, not to mention the time it costs to do that. Most businesses will employ the help of shipping companies and couriers to get things from A to B. Sadly, these companies often have large fees that make shipping an expensive process. In turn, you lose money from your sales as a lot goes towards the shipping fees. Or, even worse, you miss out on sales because your high delivery costs are unattractive and consumers avoid you.
The negative effects of high shipping costs are clear, so what can you do to lower them? It is much easier than you think, as these ideas will prove:
Use LTL Shipping
LTL stands for less-than-load and it is a type of freight shipping that greatly reduces your overhead costs. The idea is that you ship products that don’t take up an entire truckload. As a result, they get shipped alongside other business’s products in the same truck. The carrier does not need to make a specific journey just for your items, and the businesses basically share the cost of the shipping between them. It is a very simple tip, but one that can save an absolute fortune.
Decrease The Weight Of Your Packaging
Always look for lightweight packaging option to reduce the weight of your shipments. If your packaging is too heavy, it adds additional weight to the shipment. In turn, this will always lead to higher shipping costs as most companies charge based on weight. Decrease the weight, and you decrease the costs.
Look For Discounts
Yes, you can find discounts when shipping products to customers. This is pretty much a golden rule for any business expense you incur — always, always, always look for discounts. They exist all the time and will save so much money in the short and long term. With regards to shipping discounts, most are based on the volume of products you ship. In effect, you pay less when you ship more goods with a company. Contact all the suppliers you have been dealing with and ask about their shipping discounts. Then, choose one that provides the best offer and saves the most money.
You are probably wondering, is it really this simple? Well, yes, it is! Apply these three tips to your business and you will drop the shipping costs by a considerable amount. The benefit of this is that you lower your overhead costs without impacting the quality of service. Your customers will be much happier, and your profit margins increase due to spending less money on shipping.