Tips for Reducing Shipping Costs
A big step for any new business is finally building up enough outbound volume to justify the use of freight shipping. However, it can be a major money sink if you aren’t familiar with the process. Here are some tips for reducing shipping costs so you can reinvest in your business.
Explore Your Options
With any service or product, it is best to see what is available instead of settling for the first thing that comes your way. Business shipping is no different. You want to consider factors such as distance, weight, and frequency when choosing a shipping company. While one company might be your best option for closer destinations that weigh less, another might offer better rates for longer distances.
Consider Packing Supplies
One of the biggest factors that can impact the cost of shipping is the product’s dimensions. Previously, shipping companies would charge by weight for freight. While this was fantastic if your company manufactured cotton balls, sellers of cast iron pans were understandably frustrated at the higher rate. Now, they use what is known as dimensional weight to level the playing field. Make sure you are packing your products in as compact a condition as possible but are still safely padding them to prevent damage from shifting.
Know When To Ship
Think about the peak times for your products and prepare in advance. Try to avoid the busy times for freight companies if possible, so you aren’t paying unnecessary shipping premiums. There are even specific days of the week where it is cheaper to ship depending upon your delivery company. The most common off-peak days are Monday and Fridays, and you can save as much as ten percent by shipping on one of these two days.
Build Relationships
Creating a relationship with your shipping company can have many benefits for your business. Carriers are more likely to give you a discounted rate if you can help them reduce their costs. Maintaining consistent delivery schedules and creating efficiencies in your own supply chain that will aid your shipping partner could prompt a lower rate. Anything that reduces their downtime will help improve your relationship. They may even be able to help you out during peak times, especially if you have a long-term relationship with consistent shipping.
These tips for reducing shipping costs should help you save money on your overall supply chain costs. By lowering your shipping costs, you can then turn around and invest more in growing your business.
