One of the best ways to increase sales is with subscription boxes. This method of kitting assembly works by bundling like items together to be sold as a package deal. But unlike other forms of kitting and assembly, subscription boxes have a significant advantage. Not only can you sell multiple items at once, but you can continue getting sales by shipping them to customers on an automated schedule.
Customers who sign up for subscription boxes will receive their orders on a weekly or monthly basis. Best of all, as the seller, you will receive automatic payments every time the next subscription box ships out. Talk about a smart way to make money selling online.
Online sellers who want to maximize profits know that it doesn’t end there. There are always more ways to make money from selling subscription boxes. The key is looking for creative ways to reduce expenses.
Shipping is one of the highest costs of being an eCommerce seller. It pays to find ways to get lower shipping costs. Doing so can increase profits on every sale. Small cost-savings add up over time, which can result in substantial savings. Here are three ways to ship subscription boxes the cheapest way possible.
1. USPS Priority Mail volume discounts
Shipping weight is a significant factor in calculating shipping costs for carriers like USPS. Subscription boxes are often small and heavy. They can be expensive to ship. However, many online sellers don’t know that they can get cheap USPS shipping rates for small, heavy items.
What’s the catch? It all comes down to how much you sell. USPS shipping discounts for high-volume sellers can save a lot of money. If your subscription boxes weigh a lot but aren’t too large, you may qualify.
All you need to do is ship a lot of USPS Priority Mail packages every month. The boxes must measure less than .5 cubic feet and weigh 20 lbs. Or less. Using this method, the price is mainly calculated by size and distance rather than weight. Again, you’ll need to be a high-volume seller to qualify. (If that doesn’t apply to you, skip to #3 for other ways to qualify.)
2. UPS SurePost and FedEx SmartPost
Not a fan of USPS? No problem. FedEx and UPS shipping discounts are available. UPS SurePost and FedEx SmartPost work by having UPS or FedEx hand the package off to USPS once the shipment reaches the destination zone. That allows the big carriers to save money on dispatching trucks to the customer’s exact location.
Instead, the local USPS branch will take care of delivering the shipment to the final destination. It’s added to the USPS driver’s daily mail route. While it may take a little longer for packages to be delivered, the savings add up.
3. Qualify for shipping discounts from an eCommerce fulfillment company
As mentioned, high-volume sellers are the only ones who qualify for volume discounts, like the one from USPS Priority Mail. Yet small sellers who make fewer sales can still get access to volume shipping discounts. All it takes is a little creativity.
One way to get USPS volume discounts is by asking one of your suppliers to use their corporate shipping account. Not ever supplier allows this, but it doesn’t hurt to ask. A more reliable way is to hire a third-party eCommerce fulfillment center since they ship in bulk. Not only can you gain access to the online fulfillment company’s shipping discounts, but they’ll also pick and pack orders for you.
Pick and pack services can get reduced shipping rates since they ship in volume. Fulfillment centers handle accounts for many e-commerce retailers at once, shipping products all over the country and even worldwide. While online fulfillment companies have many benefits, one of the best parts of working with them is taking advantage of their volume discounts to save on shipping. Some firms even specialize in subscription box fulfillment.
SAVE MONEY AND INCREASE PROFITS
Keeping an eye out for shipping discounts and free shipping supplies is a great way to increase earnings from selling subscription boxes. While FedEx, UPS, DHL, and USPS rate changes are a fact of life, it pays to stay on top of policy changes that can affect the shipping rates you pay. Remember, there are always ways to save money on shipping — all you need is a little knowledge and creativity.