6 Ways to Reduce Your Business Shipping Rates

July 7, 2017


One way to help boost profits and productivity for your business is to reduce the cost of shipping. It may be easier than you think, and customers who experience high shipping costs, sometimes as much as the items themselves, will certainly appreciate it. 

1. Be Precise

If you're shipping to customers throughout the country or even internationally, base your business shipping costs on the most accurate information you can get. Use a ruler to measure the length, height and width of your packages, and invest in a quality postage scale so you know exactly what your item weighs with packaging and shipping materials included. You can use this information to estimate shipping costs for buyers based on their location.

2. Use Online Shipping Tools

If you and your team spend a lot of time preparing labels and calculating shipping rates, take advantage of online tools that keep you organized from beginning to end. The United States Postal service offers the USPS Shipping Assistant, a downloadable online shipping tool that's great for small business owners. Use it to print USPS forms, calculate domestic or international shipping costs, and track shipments to your customers.

3. Explore All Your Shipping Options

When you send a bundle of packages all at once, consider freight transportation. If you're not shipping enough products to fill an entire truck, look into LTL (Less-Than-Truckload) freight carriers that typically haul shipments ranging from 100 to 20,000 pounds. If you're shipping just a small number of packages at one time, shop around. Research the cost of using several different carriers based on the location, package dimensions and weight, and other factors. Consider shippers such as FedEx, UPS, DHL and the U.S. Postal Service. Business specialists from these companies can answer your questions and help you determine the shipping services best suited for your business. You might also be able to negotiate with a single carrier for discounted rates if you agree to use that company exclusively or at least the minimum they require for a discounted rate. 

4. Purchase Packaging in Bulk

If you ship a lot of similarly sized items, purchase shipping boxes, envelopes, bubble mailers and other packaging materials in bulk. By spending less money on packaging, you may be able to pass the savings on to your customers. Research the size regulations for packages sent through several carriers so you know what extra fees are involved if you exceed the size requirements. Consider using packaging provided by the carrier to make sure there are no surprise fees when you ship your products.

5. Choose Specific Shipping Days

How much time do you spend packaging and shipping every day? Consider designating specific days of the week to the job so you can package and ship items in larger batches. For example, shipping items only on Mondays and Fridays gives you time during the middle of the work week to receive orders, craft your products and keep up with other office necessities. When you make fewer trips to the post office, you save money and increase productivity. Remember, this only works if it works for your customers. 

6. Pre-Package Popular Items

If you sell specific products that are popular with customers, consider having the items pre-packaged and ready to ship. If a specific necklace sold by your hand-crafted jewelry business is a hot item around Valentine's Day, package the items individually so they're ready for quick shipping. When an order is received, simply attach a shipping label and get the item sent off to your customer. This is a definite time saver. 

Whether you're selling antique or showing off handmade treasures, your customers appreciate value. By following these six tips, you can reduce your shipping rates and keep your customers happy and loyal.