Cut Shipping Costs And Increase Revenue With These Business Tips

With the COVID-19 pandemic continuously being a challenge at an extensive rate, e-commerce is only gaining more and more significant as this is the only possible way to keep the trade rolling. Because it meant doing business by distance, shipping has become e-commerce’s most valuable partner.

In Nosto (2021), clothing and fashion still hold the number one spot, or 55%, in terms of in-demand goods next to food at 32%. The sole reason why customers continuously patronize and buy these items in the e-commerce market is the blinding and sparkling offer of free shipping which, according to Saleh (2021), influences online purchase decisions as 61% of consumers are somewhat likely to cancel their shopping list and carts if the free shipping option is not offered by the seller. Ninety-three percent are encouraged to buy more products unplanned if the online shop does not charge for shipping, 58% add more items to their carts in order to qualify for the promo while only 28% would rather buy at the physical store instead.

Let alone these statistics, not only does it emphasize the fundamental role that shipping plays but it also makes shopping even more convenient. Its presence in the logistical side of any business operation also meant that shopping can be attained without draining your wallet since there is no need to go to the store physically anymore, spend money for unplanned meals (dining out after shopping), and actually save time doing it.

With the current pandemic, however, shipping companies surged their rates and are now slowly becoming a financial burden of small business owners who just wanted to keep their shops afloat. But for shipping companies, they will always mean business at now is the best time to gain profit since there is a high demand for the service. Naturally, everyone will strike while it is hot. Regrettably, not all small businesses can cover free shipping options for their customers.

Here are other fun and creative tips to reduce shipping costs and secure the patrons in line. The truth is, you can continue to run the business competitively with a few ways as equally convincing as free shipping:

Find a trustworthy shipping company and negotiate:

Because you actually can negotiate. Like all other businesses, they can offer you bulk pricing or reduced prices. Make scouting a good habit, whether it is for your store supplies, for your products, or for your shipping partner. Compare rates offered, check their agreement provisions, shipper claims, and other rules. Once you have finalized, negotiate. If you communicate effectively and they see a potential long-term partnership with you, they will value your business and need it as much as you need them.

Check your packaging:

Ensure that you are packing your products for shipping properly. This is an effort to minimize broken items and potential bad reviews about your online store. Take note that certain products can easily get broken while in transit and that most couriers do not hold themselves responsible. To make up for this, it will usually go on top of your expenditure as waste so to prevent this from happening, pack the items properly. Use the standard and prescribed boxes, packaging tapes, and fillers that your courier provided.

Not only do these packaging materials protect your products but they can be an impressive representation of your online store. Try shifting inside items and organizing them in such a way that it saves space and dimension and it can definitely strip off a few numbers out the total shipping cost. Calculate shipping costs and how much everything will take so you are always aware of your expenditure.

Find shipping coupons and discounts for your customers:

Consumers love free shipping but this can be rather expensive. A good alternative can be shipping discount coupons – one of the most personalized ways that you can offer your customers in checking out their carts. This is more reasonable to give out considering that you have overheads to pay. Offering this kind of discount makes your consumers want to buy more of your products. Not only do these discounts and coupons help your online shoppers, but they can also bring your business a good sales return, brand recognition, and a remarkable reputation.

Make use of flat rate shipping:

Flat rate shipping is the easiest way to cut down shipping costs as it meant that the shipping fee is not solely attributed to the weight, shape, and size of the product to be shipped. It is usually always based on how much stuff you chuck in the box provided by the shipping company and you pay the same amount for each of them.

Consider the hybrid strategy:

Shipping costs remain to be one of the biggest expenses of small businesses. But there are creative ways to which you can minimize expenditure. For example, Fred DuBois had tried cutting his shipping cost for his laptop battery store in Cleveland. He spends roughly $500 per day for 50 battery orders. He exclusively relied on FedEx Ground and then tried, one summer, to vary his carriers and logistically strategize. He had saved $250 a day from shipping half his orders with FedEx and the other with the U.S. Postal Service. With the hybrid strategy, there will always be a way to turn things around.

Shipping costs are inevitable and uncontrollable in e-commerce. Hopefully, these ideas can help you with ways to reduce shipping costs with a major consideration of the fact that many customers often want to pay as little as possible for any online purchase.