In terms of shipping, the small business seems no match compared to giant brands. As shipping rates increase every year, what happens is only big brands benefit because of better shipping discounts.
It is a sad reality that not every e-commerce company is given an equal opportunity when it comes to it. Knowing that no matter what size you are is something that is crucial to forge your relationship with your customers.
The best that small businesses can do is to know the shipping basics and use this knowledge to do their part indirectly cutting the costs. Another challenge that must be addressed when shipping is the fact that you have to leave it all in the hands of the shipping carrier after packing. There’s the possibility of the package being lost or coming with damages. All of these could give your customers a bad impression of you.
To counter this, you must establish a line of communication with your customers so that you can immediately reply in case they have complaints or questions regarding their orders. and create a shipping policy setting their expectations regarding how much their package costs and when it is likely to arrive.
You also have to disclose on your website the shipping costs which include the boxes, packaging, tape, stickers, the labor for sending an item; the courier costs for collecting and delivering an item; and the import/export fees when shipping internationally.
So since shipping costs is one of the major consideration whether a shopper buys your products, or not, we are sharing you this guide to help reduce shipping costs and provide a better customer experience.
Cut Package Weight
Weight comes with a price when shipping packages to customers. The heavier it gets, the more costs it will take it ship. It may only be one cent per package but you’ll be shocked about how much it will be when talking about several hundred packages. This is why choosing lightweight and customized packaging is wise and helpful for cutting shipping costs and improving profit margins. Another good way is to design a shipping package to match the shape and size of your items because the less packing material you’ll need, the more you can offset rising shipping costs quickly.
Choose the right packaging size
Changing the packaging greatly affects shipping costs. Looking for box alternatives that offer better protection but smaller size and weight is a very preferable option. Knowing that the size and weight of the package are the main drivers of shipping costs.
Researching for carriers who are giving away free packaging can save you a lot of money too! But regardless if you’re getting your packaging for free or ordering custom packaging, being well aware of what types and sizes of packages you need to use is still the main factor to save you money.
You can do this by measuring your products and determining the quantity that you typically send all at once. That will help you analyze what size packages will work for the orders you ship frequently. Just look at your order history to compare and order packaging that would fit with your normal orders.
Offer flat-rate shipping if possible
Flat-rate shipping means the shipping costs only come at a single rate, regardless of the weight, shape, or size of the item. Its immediate benefit is that instead of variable costs, you will be charged fixed costs.
So if you plan to ship a certain quantity of items within the specified weight range, you will immediately know in advance exactly how much it’ll cost. The flat shipping rates can be set for any order depending on a shipping zone or a specific price or weight range. For example, in a shipping zone for the United States, you could set a flat rate of $10 and another flat rate of $5 for orders over $100. This way you are in control over what a customer is charged at checkout.