4 Ways to Reduce Shipping Costs for Your Ecommerce Business
Shipping costs can quickly add up for businesses that sell online. For ecommerce businesses in particular, who sell their products internationally, or to customers all over the world, shipping can quickly become a high cost for your business. If your ecommerce store is looking to increase its revenue and drive more purchases, it’s important to explore strategies for reducing shipping costs. With a few well-planned strategies, you can lower your shipping costs and increase your ecommerce store’s revenue.
Below are four ways you can reduce shipping costs for your ecommerce business.
Offer local delivery or pickup.
One way to reduce shipping costs is by offering customers the option of local delivery or pickup. If a customer opts for local delivery, they will be charged a fee that considers the cost of labor, taxes, and other related expenses. It may be easier for customers to buy from your store when you offer this option because they won’t have to pay for shipping. This is beneficial for both parties because it reduces costs and increases convenience for the consumer.
Buy in bulk
Typically packing wholesalers will reduce prices for larger orders. If you know you will need a large volume of a specific packing option such as shipping boxes white, it can be with overbuying to take advantage of lower costs if you have the space to store them. This option will allow you to offer lower prices to customers.
Reduce packaging sizes
One way to reduce shipping costs is to package your items in smaller packaging. It may seem counterproductive, but by reducing the size of your packaging, you will be able to save on materials, and you will also be able to cut down on the weight of your packages.
If you sell a clothing item, for example, you can reduce the bulkiness of your product by folding it instead of rolling it. And if you sell a beverage, like coffee beans or tea leaves, you can use a sealable bag instead of a jar with a lid.
This strategy can help save on packaging costs and shipping fees for your business. But it’s important to note that this strategy has some downsides. If you are selling fragile items or products with sensitive ingredients that need to be protected from light and air exposure, this technique may not work well for you. For these types of products, using custom-sized packaging is probably better than trying to reduce your packaging sizes.
Use flat rate shipping where possible
A good strategy for reducing shipping costs is to offer flat rate shipping. When you offer flat rate shipping, you can often avoid the need for more expensive and heavier packaging methods. Flat rate shipping means that you charge a set fee for all products, regardless of size and weight. Depending on your customers’ needs, this strategy might work better than offering free or discounted shipping options. An ecommerce store that offers a wide range of product categories could benefit from this strategy because it allows customers to purchase different types of goods without worrying about paying extra fees or higher priority rates.