Save Money on Shipping in 2023 – 10 Hot Tips

Shipping plays a vital role in the eCommerce shipping industry, as it connects sellers and buyers conveniently. However, rising shipping costs have significantly affected businesses and individuals. Thus, finding the cheapest way to reduce shipping costs is essential.

Here are 10 of our best tips to save on shipping in 2023.

Research Your Carrier

Imagine buying a new expensive item for yourself. Of course, you don’t want to spend money on something that’s not worth the price, right?

The same concept applies when you choose a shipping company to deliver your items. You always want to work with a company that matches your shipping service standards or budget.

Researching every carrier also helps tailor your choices to match your specific needs.

In essence, thorough research empowers you to make informed decisions that reduce shipping expenses and improve the overall efficiency of your shipping operations.

Use Flat-Rate Boxes

With flat-rate shipping and delivery, there is a fixed fee regardless of the package’s weight or final destination (even if it’s international shipping). It is advantageous for businesses with consistent-sized products or shipping heavy items, as it offers cost predictability and helps maintain competitive pricing.

For example, you might pay the same amount to ship a small box with a book as you would for a small box filled with bricks. The cost remains constant as long as the items fit in the designated box size.

Use Zone Skipping

Zone skipping is a strategy where packages are consolidated and shipped directly to their final destination zones, bypassing intermediate distribution centers.

Sounds confusing? Let’s simplify it this way. Think about a company in New York shipping packages to customers in California. Instead of sending each package individually, they gather multiple packages, ship them directly to a distribution center in California, and then distribute them locally from there.

This method optimizes the supply chain, minimizes transit times, and lowers shipping expenses because instead of sending each package separately to various regions, you combine shipments headed to the same destination zone and ship them directly there, ultimately reducing handling and costs and making shipping more efficient and cost-effective.

Buy Packaging Supplies in Bulk

There is one thing you can never avoid in shipping: packaging your products. Purchasing your shipping supplies in bulk offers several advantages:

• Reduces the cost per unit (package)
• Ensures a steady supply, preventing production delays due to material shortages.
• Allows quicker order fulfillment and better customer service
• Leads to better negotiation leverage with suppliers
• Minimizes packaging waste, as you can use materials efficiently over time.

Put it like this: Let’s say you run a small business doing eCommerce shipping and send products daily. You decide to buy bulk packaging materials, so you order a year’s worth of cardboard boxes, bubble wrap, and packing tape from a wholesale supplier.

You can negotiate a lower per-unit cost. Plus, you don’t need to worry about running out of supplies because you have enough that could last a long time, benefiting both your bottom line and customer satisfaction.

Reuse Packaging

You can avoid buying new supplies by repurposing boxes, bubble wrap, and any packaging material from previous shipments. This not only lowers packaging expenses but also minimizes waste disposal costs.

Let’s say you receive a package with a sturdy cardboard box and bubble wrap. Instead of discarding them, you carefully open the box and remove its content. Then, you flatten the box and neatly fold the bubble wrap. Later, when it’s time to ship an item to a customer, you reuse the same box and bubble wrap.

Consolidate Packages

Consolidating packages optimizes the use of space and streamlining logistics. When multiple shipments destined for the same location are combined into one package, it lowers the overall weight and dimensions, potentially qualifying for discounted shipping rates.

You might wonder whether zone skipping and package consolidation are the same, as they combine the packages into a single shipment. However, these two strategies are different.

Consolidation reduces shipping costs per item, while zone skipping minimizes handling transportation costs by bypassing hubs. Both strategies save money but address different supply chain aspects.

Use Packaging That Matches Your Product

Using the wrong type of packaging can skyrocket your shipping costs.

Focus on efficiency and space utilization to optimize dimensional weight packaging and reduce shipping costs. Select packaging that closely matches your items’ size, minimizing excess dimensions. You can also use fillers and custom packaging when necessary.

Get Your Shipping Labels Online

You can generate and print labels from the convenience of your home or workplace, saving time and eliminating the need for physical trips to a post office. They also often include real-time tracking capabilities, enabling you and your customers to monitor shipments.

Additionally, online label services may offer discounted postage rates and integrated shipping options, optimizing shipping cost efficiency. It’s also eco-friendly, as it reduces paper waste.

Scale Your Packages Beforehand

Scaling packages ensures accurate postage costs, preventing overpayment or unexpected fees for underpaid postage. It also aids in compliance with carrier regulations, ensuring that your package meets size and weight restrictions. Moreover, accurate weight measurements prevent delays and issues during transit, improving the overall shipping experience for you and your recipients.

Thus, scaling packages beforehand is a simple yet crucial step to ensure efficient, cost-effective, and trouble-free shipping.

Negotiate Prices

Negotiating for a better rate with shipping carriers can be an effective approach to cut shipping costs. Here are some ways on how to do it:

1. Step 1: Evaluate your shipping data. Gather information on your shipping volume, destinations, and historical costs. It is crucial that you understand your shipping needs thoroughly before negotiations.
2. Step 2: Identify potential shipping partners. Find the carriers that offer the services, reliability, and coverage that best fit your shipping needs.
3. Step 3: Contact carrier representatives. Contact the account managers or carrier representatives. Don’t forget to start with a polite and professional introduction. Clearly explain your shipping requirements and indicate you are open to negotiating rates. Also, don’t forget to discuss any challenges or concerns you face with your current shipping costs or quality and the desired outcomes you want to achieve while partnering with them.
4. Step 4: Request a rate review. Request a comprehensive rate review, including discounts on shipping rates, surcharges, and additional fees. Ensure you understand the terms and conditions.
5. Step 5: Compare rates. Don’t settle for the first offer. Compare proposals from different carriers to ensure you’re getting the best deal. Also, before signing the contract, carefully read the terms and conditions. Make sure that you don’t overlook hidden fees or unexpected clauses.
6. Step 6: Monitor performance. After securing discounted rates, monitor the carrier’s performance to ensure they live up to their commitments and service standards. While doing this, you should also regularly reevaluate your eCommerce shipping needs and carrier performance to continue optimizing your shipping costs through negotiations.

Bonus Tip: Use Subscription Services

Several shipping carriers offer subscription-based shipping services designed to benefit businesses with consistent shipping needs. These subscriptions provide shipping discounts on the shipping fee for regular or high-volume shipments.

Companies can lock in discounted rates by subscribing, which makes it simpler to budget for shipping expenses and increases cost predictability. These services often come with additional perks, such as package tracking, delivery guarantees, and a simplified shipping process.

For businesses with recurring shipping demands, subscribing to such services can lead to significant savings, increased efficiency, and enhanced customer satisfaction.

Key Takeaway

Shipping costs will continue to rise in the near future, so small businesses will need to adapt to thrive. From carrier negotiations to efficient packaging, the methods shared in this article will help individuals and businesses optimize their shipping practices, save money on shipping, and maintain competitiveness in the ever-changing shipping industry.