Some useful tips how to reduce shipping cost
One should do business to earn profit. If profit increases you can spend that money on the development of your business. Increasing sales leads to handsome profit but what other factors should be consider that increases the profitability of your business. To analyze this, one should first analyze the nature of business. In every business there are certain operational expenses that reduce our profitability like labor, office rent, electricity expenses, shipping expenses etc. These expenses might differ depending upon the nature of business. Like, in retail business office rent and electricity expenses are more as compare to shipping or labor. For Wholesalers and distributors transportation expenses are more because of delivery nature of business. In e-commerce business, shipping expenses are more that need to cut down for better profitability. The Aim of this article to help you in reducing shipping cost for ecommerce businesses:-
Before moving further, first highlight those expenses that are eating our profitability. Shipping cost does not restrict to transportation of goods else it includes packaging material, warehousing expenses, packaging weight, labeling etc. If we tried reducing these expenses, our profitability will definitely shot up.
Let’s discuss about these expenses in detail and some valuable tips to reduce it.
- Mode of Transportation – As we know, transportation is one of the most important part of shipping. We cannot escape this, what should we do now? There are various modes of transportation like air cargo shipping services, sea cargo, truckload through which our parcel delivered. Fuel expenses are much higher now a days, so to reduce this expenses. Cheaper mode of transportation should chosen. For example, if we want to send our parcel through truck load services and the size of our consignment is not as big to hire full truckload. In this case, one should go for less than truckload services to reduce the expenses.
- Packaging Material – another expense that needs to optimized is packaging material. In this, we cannot compromise with the quality because this is the armor of our product. In this case packaging size needs to optimized to reduce our shipping cost. For Small size goods smaller size packaging box will fit best. If we will take large box for small size goods, it unnecessary increases the weight of the parcel that affects the price of the parcel.
- Warehousing – Handling of good demands proper storage and warehousing facility. This creates the demand for hiring the warehouse. Our supply chain should be optimize properly that reduces our dependency on warehouses.
Some more shipping cost saving suggest that you had never seen on the web.
- Ask for discount – people think that the price of shipping is fixed, it gone change. You will amaze to know that, you can have discount if you want. Just ask discount from your shipping forwarder and in return assure them regular parcel booking. This How to reduce shipping cost. In short, you need to do bargain with your agent.
- Free Packaging Material – If you are sending your parcel through reputed shipping company like fedex or DHL etc. They give packaging material for free. This saves your money of buying packaging material.