6 Ways To Reduce Shipping CostsSeptember 22, 2021
Shipping costs can quickly add up if you’re not careful. Thankfully, there are many actions you can take to cut down on your expenses. To help, we’ve compiled 6 different ways you could cut down on your shipping costs.
- Know Your Shipping Zones
Shipping zones can impact not only the cost of your delivery but also the speed at which it arrives. Briefly put, shipping zones are the geographical regions that carriers deliver to. In the United States, the zones are numbered 1 through 8, with zone 1 being the closest to the point of origin and zone 8 the furthest away.
If your shipping zone number is high, for example, zone 7 or zone 8, this means your delivery will be more expensive and slower for customers to receive. The best way to reduce your shipping zone costs is to try and eliminate shipping to higher zone numbers. The more you can do this, the more money you will save.
- Use Prepaid Shipping
Prepaid shipping is another good way to reduce your shipping costs. Why? You can get up to 20% of shipping costs discounted from carriers like FedEx and UPS by buying a certain amount of shipping labels upfront.
- Use Poly Mailers Instead of Boxes Where Possible
If your items are small and non-fragile, it’s best to use poly mailers instead of boxes. They’ll save you money on packing supplies like bubble wrap and take up less room on delivery trucks.
- Offer Local Delivery and Pick Up
Offering local delivery and pickup can also help you to cut down on shipping costs. Local delivery allows customers to buy your products and have you deliver them directly to their homes. You can also give customers the option to pick up their order from your store or location of choice. Both are alternatives to paying for shipping and can help you save money.
- Take Advantage of Association Discounts
If your industry has a professional association, find out if they have partnerships with carriers that offer member discounts. Depending on the size of your association, you might qualify for discounted rates of up to 50 percent on services with carriers like UPS and FedEx.
- Optimize Your Dimensional Weights
All major carriers including the USPS, UPS, and FedEx use dimensional weight (DIM weight) to determine the transportation cost of packages. To counter increased shipping costs, you’ll need to ensure you use the right amount of packaging and use the DIM factor published by your carrier to establish the right dimensional weight.
Use A 3PL To Cut Down On Costs
Many ways exist to cut down on shipping costs, but it can be difficult to know where to begin, especially if you’re already overwhelmed with your order fulfillment. Consider using a 3PL like Fulfillment Works if you want to optimize your fulfillment process. We regularly negotiate with carriers to get you the best shipping rates and use state-of-the-art technology to help you cut down on the shipping costs of your packages.