2018-03-14 08:21:31 Expenses English Ship your products efficiently to keep your overall operating costs low. Packing items with care and comparing the available shipping... https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2018/03/Entrepreneur-Prepares-An-Order-For-Shipping.jpg https://quickbooks.intuit.com/ca/resources/expenses/shipping-operating-costs/ How to Cut Down on Shipping Costs in Your Small Business

How to Cut Down on Shipping Costs in Your Small Business

2 min read

As an online retailer, you’re already aware of how much shipping and handling costs eat into your profits. Passing on high shipping rates to customers can hurt your business especially when free shipping offers are rampant throughout the e-commerce world. When you rethink your shipping strategy, you may be able to lower your overall operating costs while also keeping customers happy by lowering their shipping charges. A combination of smart selection of shipping services and streamlined packages can help decrease shipping costs and create a win-win scenario.

Lower Costs by Comparing Rates and Consolidating Shipping

Instead of choosing a shipping service at random, compare rates and find the best deal. Shipping apps help you compare rates from different carriers in one location. The rates vary depending on the size of the package and the destination. You may also have the power to negotiate with carriers to get lower rates because of your small business status, and some carriers offer volume discounts. Get cozy with your dedicated representative at your preferred shipping carrier, and see if you can negotiate and sweet-talk your way to reduced shipping fees. If you also receive shipments from suppliers, ask them to use your account through your preferred carrier to get even greater discounts.

Join Special Programs for Small Businesses

Carriers often provide special programs that offer discounts and lower rates to small business owners. Shipping through Canada Post may be an affordable option if you join the Solutions for Small Business program. The program, which is free to join, nets you special shipping discounts and lower rates for direct mail pieces. Your membership also qualifies you for streamlined all-in-one payment and shipping options for online sales. UPS Get More and Purolater Business Rewards programs offer similar discounts and benefits for small business owners in Canada.

Save on Shipping Supplies

When figuring your shipping costs, don’t forget to calculate the price of shipping containers, padding, mailing labels, packing tape, and other shipping supplies. You may also want to figure in a handling fee to account for labour costs. You can cut back on these expenses by buying in bulk and comparing prices from different vendors. Using shipping supplies provided by your selected carrier can also keep costs lower, since you can eliminate extra fees charged for packages that don’t fit the carrier’s preferred dimensions.

Minimize Costs by Streamlining Your Packaging

A streamlined package costs less to send than a heavy, bulky package. Choose shipping containers that fit the product perfectly. The dimensions of much larger boxes can increase shipping costs, and the extra padding required to keep the product safe increases the weight, causing higher fees. Keep extra additions inside the package to a minimum to keep weight as low as possible.

With strategically prepared packages shipped via the cheapest carrier possible, you can cut your shipping costs and pass on the savings to your customers. Take advantage of special shipping programs offered by carriers for additional savings that help improve your bottom line.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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