How can you reduce your shipping ...

Delivery Costs

The price of shipping is a cost that many businesses overlook. It can make logistics more expensive than they need to be and reduce competitiveness with other brands. However, there are ways to ensure that your shipping costs are minimised, both to benefit your business and also so that you can pass this on to your customers too.

Can you cut the cost of your packaging materials?

Packaging materials represent part of logistics costs that we tend to overlook but it’s also somewhere that there are often significant savings to be made. It’s always worth revisiting the packaging materials that you use for shipping to see if these could be reduced. Is there are more efficient way to ensure that goods arrive in great condition that also costs less? So much of the packaging we use for shipping could be minimised – this will not only have a positive impact on cost but on your environmental credentials too.

Could you reduce the size of the packaging you use?

It’s well worth cutting down packaging sizes if you possibly can. If you’re using one size of packaging for everything then smaller items may well require a lot of expensive filler. You may also find that your customers are put off by boxes that aren’t appropriately fitted to what’s inside because they seem incredibly wasteful. Correct package sizing can help to significantly cut the cost of what you spend on shipping, as well as improving brand perception.

Is there any aspect of your shipping costs that you could negotiate?

It may be the packaging designers or provider, or perhaps it’s the relationship at the logistics end of shipping – there is usually at least one agreement that can be renegotiated to help lower costs. Particularly if you’ve had ongoing relationships for many years it’s always worth asking for a discount on what you currently pay. Depending on their own structure, if the partner is able to agree, they are often willing to do so.

Is it time to switch your carrier?

If you’re currently spending far too much on shipping then it could be that it’s time to move on from your current carrier. Big brand carriers in particular don’t always offer the best value and can cause shipping costs to be much higher, especially for smaller enterprises. It’s always worth shopping around to see whether there is another carrier with a service that suits your shipping needs and a price list that enables you to cut the cost of what you send.

Do you need to consider warehousing and storage?

Some organisations factor warehousing into the overall expense of logistics and a good warehousing solution can help to reduce the overall cost of getting an item to a customer. If you don’t currently have warehousing and storage or you’re not happy with the price of the partner service you’re using right now then it could be time to look into a new logistics partner.

If you’re keen to cut your shipping costs – for the benefit for your own bottom line and for customers too – we can help. Find out how our logistics services could make your shipping costs more affordable.

next post: Simplify your logistics and delivery services by following these steps