E-commerce companies often pay too much for shipping without realizing it. Shipping price increases happen every year. It’s tough to keep up with postal price changes. When you pay too much for shipping, it silently eats into your profit. For online retailers, it’s like throwing hard-earned money out the window. When you have an online business, every dollar counts. Keeping an eye on what you spend on shipping labels and supplies will maximize your profit.
Don’t pay too much for shipping!
These clever tips can help you save money on shipping.
Try USPS Parcel Select
If the package doesn’t weigh much and you’re still using FedEx SmartPost or USPS SurePost, you could be overspending.
You’re probably familiar with USPS last-mile delivery. It’s a cheaper (and slower) way to ship items via UPS and FedEx. Consider switching to USPS Parcel Select if you use FedEx SmartPost or UPS SurePost for last-mile delivery on lightweight packages. The features and services are similar, and you may pay less.
Use smaller boxes
If you think shipping small or, light items means you won’t spend big on shipping, that’s not always the case. Package weight is not the only factor in determining shipping costs. Package size matters, too.
If you use a larger box than is necessary, you’ll pay more.
Package size plays a significant role in determining dimensional weight — A formula shipping companies like FedEx, UPS, DHL, and USPS calculates the volume of space the package takes up relative to the actual package weight. They’ll charge you whichever is higher: actual weight vs. dimensional weight.
To keep shipping costs down, use the smallest box possible.
Or just don’t use boxes at all…
Bubble mailers take up less space than boxes, so they cost less to ship. They offer proper protection against shipping damage as well. The same goes for rigid envelopes. Unless you are shipping fragile items, you don’t really need the protection cardboard offers.
There are plenty of cheap bubble envelopes online. Buying padded mailing envelopes in bulk adds up to even more savings.
Get free shipping supplies
Free, you say? Yes! FREE! UPS, FedEx, DHL, and USPS free shipping supplies come in all shapes and sizes. You can even get open pouches and more. The only catch is you have to use their service. For example, it’s a TOU violation to use free USPS boxes to mail an item with UPS. But since all the carriers offer free supplies, that shouldn’t be a big issue.
Buy bulk shipping supplies
Now that you have consistent online sales, you have a better sense of the number of boxes and supplies you will need. Planning ahead can save big bucks. Take a minute to sit down and estimate the shipping supplies needed to get through the next 3-6 months. A rough estimate is all you need. Then, buy shipping supplies in bulk and watch the savings roll in.
Hire a 3PL pick-and-pack company
We are Simpl Fulfillment, an e-commerce fulfillment company that stores inventory, then picks, packs, and ships orders from our warehouse direct to your customer. Also known as online order fulfillment companies, we handle everything after the sale so you can relax and watch your business grow.
There are many benefits to using a 3PL order fulfillment company. One of the biggest is how much money you can save on shipping.
For example, you can reduce shipping costs by using our centrally located warehouse in Austin, TX. That comes in handy if you have customers all over the United States. Our central warehouse location means a shorter distance to your customer’s doorstep, primarily if you are located on the coast. Imagine the savings!
Order fulfillment companies also give you access to shipping discounts. We ship a lot of packages, more than most small online companies do. That means we get volume shipping discounts from the big shipping companies that many small e-commerce brands don’t qualify for. We pass the savings along to you.