11 Ways to Reduce Shipping Costs to Boost Profits
You’re probably already well-acquainted with the importance of shipping costs when it comes to your bottom line. The more you can reduce shipping costs, the more profits you’ll see.
But how can you do that? There are a few ways. This post will discuss some of the most effective methods for reducing shipping costs and boosting your bottom line.
Lighten Up Your Packing Materials
To reduce shipping costs, look for lightweight, protective materials like air pillows and bubble wrap; the less your package weighs, the less it will cost to ship.
Also, try to reduce the dimensions of your packages as much as possible. You can do this by taking the packaging material and compressing it as much as you can.
Decrease the shipping distance
One way to reduce shipping costs is to decrease the shipping distance. This can be done by selling products that are closer to your customer base or by using a fulfillment center that’s closer to your customers.
Buy Your Supplies In Bulk
When it comes to reducing your shipping costs, buying in bulk is the way to go. By ordering larger quantities, you can qualify for lower shipping rates.
Not only that, but you’ll also save on packaging and labor costs. So it’s a win-win! Just make sure you have the space to store all that inventory.
Get Discounted Shipping Rates
Here’s the thing: you can get discounted shipping rates if you ship your products in bulk. You just need to contact a few different shipping companies and see who can offer you the best deal.
Most freight forwarders are happy to work with you and will be able to get you a reasonable shipping rate. And the more products you ship, the more money you’ll save.
Understand Duties & Taxes
For global eCommerce sellers, to ensure a smooth shipping experience, it is vital to understand the customs duty and import tax before you start shipping internationally.
Ensure that your freight forwarder has no hidden fee and is 100% transparent to maximize savings from delivery fees.
Use Third-Party Cargo Insurance
One way UPS, FedEx, DHL and other carriers make their money is by overcharging customers for insurance costs. You can reduce your shipping costs by using third-party cargo insurance.
There are a lot of great third-party cargo insurance companies out there, so do your research and find one that fits your needs. This is a critical step in reducing your shipping costs, and it could end up saving you a lot of money in the long run.
Use Carrier Packaging
When it comes to reducing shipping costs, one of the best things you can do is use carrier packaging. When you use your carrier’s packaging—even if it’s just to put your package inside of theirs—you can avoid these fees.
When you use your packaging, it’s possible to incur dimensional fees if your box exceeds the size regulations of the carrier.
Negotiate with Carriers/Freight Forwarders
This means you need to be proactive in finding ways to get the best rates. You can start by getting quotes from various carriers and freight forwarders and then negotiating based on price and service.
Also, ask about discounts for volume shipping, early payment, and other perks. And don’t forget to check out shipping alternatives like rail and boat transport, which can be a more cost-effective option in some cases.
Look into Multi-modal Transport Services
To save shipping costs, you should also look into multi-modal transportation services, which means you can combine different types of transportation to get your products to their destination.
For example, you could use a truck to transport your products to a port and then ship them overseas on a cargo ship. This is a great way to save money because you’re taking advantage of the fact that different types of transportation have different rates.
Avoid Expedited Shipping Charges
When it comes to shipping, one of the easiest ways to reduce costs is to avoid using expedited shipping.
Expedited shipping can be a great option if you need something to arrive quickly, but it’s also one of the most expensive ways to ship. So if you can wait a little longer, you can save a lot of money.
In some cases, it might even be worth considering a slower shipping method to save on costs. Just make sure that the delivery time is still within your acceptable range.
Stay Up with Shipping Carriers Pricing Changes
It’s important to stay up with the pricing changes of the different shipping carriers. If you’re not careful, you might end up paying more than you need to for shipping.
For example, UPS announced an annual rate increase of 5.9% for 2022. That might not seem like a lot, but it can add up if you’re shipping many packages.
Additionally, carriers may implement surcharges at various peak seasons (such as the holidays or what we saw happen during the early days of COVID-19) when there is a surge in packages being shipped. Carriers also implement other surcharges, ranging from oversized package surcharges to signature-required surcharges.
Book Your Shipments Earlier
Encouraging your customers to place orders early is always a good idea. This way, you can take advantage of lower shipping costs. Early planning and booking help you make timely deliveries and keeps your import-export business running smoothly, and your customers satisfied.
Keep in mind always contact your freight forwarder to book shipments earlier. Ship your products using the most economical method (ocean shipping instead of air shipping, for example).
How ABL Logistics can help Save Money On Shipping
Bulk Shipping Discounts
ABL Logistics does bulk shipping business with all major carriers to get favorable shipping rates. This way, there’s no negotiation needed on your part. Of course, that’s not all we do; we can help you get customized packaging for less.
Optimize Fulfillment Locations
A 3PL (third-party logistics) partner such as ABL Logistics can also save you a bundle, offering low-cost shipping for small businesses! When you partner with us, we’ll ship your product from one of our locations closest to your customer to avoid excess zone charges and pass some of our negotiated carrier shipping discounts on to you.
Free Packaging
With ABL Logistics, we can offer free picking, packing, and labeling services. We use plain boxes and packing materials to let your customers focus on unboxing your product. You can also get custom branded boxes, poly mailers, and inserts to use for your orders for less from our long-term suppliers.
Free Warehousing
We offer free warehousing services with full flexibility to reduce your overall shipping costs and boost your profits. ABL Logistics won’t lock you into a lease on warehouse space (or a long-term contract). You can increase or decrease the amount of shelf space as needed.
Pick-Up & Delivery
You’re already busy; why spend more time and gas money making a trip to your carrier’s location to ship your products? Look for a carrier like ABL Logistics that makes free pick-ups and door-to-door deliveries at no extra cost to save you time and money.
Free Product Sourcing Service
ABL Logistics can be your Sourcing Agent in China at no charge. Your personalized China sourcing agent will find the best Chinese manufacturer for you and your products.
Quality Inspection
In the case of product defects, your sourcing agent in China will meet with your manufacturer to resolve any issues. We even offer a one-on-one product inspection – each product is inspected for defects.
Inventory Management
3PL China – ABL Logistics can help you set restock levels and get you closer to optimal stocking levels. Our expert inventory management assistance can help you stock enough to fill all orders without tying up too much capital in inventory.
100% Transparent Pricing
Calculating shipping rates shouldn’t be complex because our freight forwarding service is 100% transparent. ABL Logistics is a China shipping agent with complete visibility on the above services to ensure you know what you’re being charged. Even if you choose to pay for tax, receiving a personal advisor from us will help you roughly calculate the tax amount ahead to help you ease the calculation process.
Smooth Shipping
Air, sea, rail, or express shipping options are available. ABL Logistics freight forwarding services ensures all documentation and products arrive safely in your destination country and clear your cross-border shipments through customs fast and seamlessly.
Offset Shipping Costs from Additional Revenue
Outsourcing fulfillment is going to save you a considerable amount of money on shipping and improve delivery times. By outsourcing your retail fulfillment, you can also get time back to focus on other tasks that drive MORE profits to your business.
ABL Logistics offers a complete portfolio of freight shipping services that enable customers to focus on their core products to grow their business.