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7 Ways to Reduce Shipping Costs


Shipping costs can be a nightmare for small businesses but resourceful entrepreneurs have found many ways to get over these expenses. These costs are not only associated with shipping the products to customers but also having the supplies shipped to you.

Shipping can account for approximately 20% of your total business costs. Dedicating more time and resources over managing this issue can save you a great deal of money making the business easier for you. Here are some tips for fresh businessmen to trim their shipping costs:

  1. Negotiate

Negotiate, negotiate and negotiate! Pricing schedules that companies have are based on volume. There is an indirectly proportional relationship, the more you ship the lower you rate. Small businesses need to realize the fact that they do have negotiating powers. If you are shipping larger number of packages then try to persuade for lower rates. Try to negotiate more effectively.

  1. Use packaging provided by carrier

You can face additional costs if your own packaging is used. It is a better option to use packaging provided by your carrier. Sometimes the box also exceeds the size regulations determined by UPS. Try to avoid those charges by relying on your carrier.

  1. Go for regional carriers

Regional carriers tend to provide same services as UPS at a reduced cost. There are a number of regional carriers in our locality. However you should keep in mind that their delivery networks might be limited. There are some platforms like which can help you in this regard.

  1. Online shipping must be leveraged

One way in which you can reduce your postal costs is to pay for your shipping online. You can save a huge deal of money on express mail and priority mail orders. You even get free pick-up service when you pay online.

  1. Insurance

Insurance is good but make it is bought from a third party. Carriers charge a nominal fee of money but that too becomes big on huge orders. There are many third party insurance companies that can cost you 50% of the carrier’s fee. These can add up to your savings if you frequently ship.

  1. Hybrid services

Hybrid services have its own downsides like imposing volume, weight and size restrictions but they can save you a great amount of money. The cost of their delivery options are very less. However the process is slow which causes delay.

  1. Seek out shipping refunds

This is an amazing way to save money. Carriers usually give on-time shipment guarantees and fail to act on it 2-10 percent of the time. This can be a good signal for you as you are entitled to refund since they do not meet the conditions they promised earlier. Make sure there is not a single refund that goes unclaimed on your behalf. There are many auditing companies that can manage your accounts and make sure all your money is recovered. You can even receive valuable shipping reports which can be a good assistance while negotiating.

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