Recent studies show that small businesses, as a collective, are spending up to $1.5 trillion on shipping in a year. It’s no surprise, given these figures, that many companies are looking to reduce shipping costs as a means of improving overall profits.
If you reduce packaging costs, you might be on the way to fantastic profits.
Figuring out how to cut those costs can be tough – but packing optimization can help. Using custom packaging could be the perfect way to change your business for the better.
What Are You Paying For?
Shipping costs should cover all facets of packaging and sending your wares to customers. Paying for shipping should cover all needed transportation by an experienced carrier, without you having to pay extra for surcharges or fuel.
Calculating your shipping costs involves a few key factors:
- Weight of Package
- Dimensions of Package
- Fuel Costs
- Distance to be Posted
Heavier parcels require far more effort to move from one place to another, meaning that weight is often the most significant decider of the shipping price. If the item has large dimensions, it will take up more room in transit: this can also raise shipping costs.
How to Reduce Shipping Costs!
Knowing what it is you’re paying for means that you can start finding ways to reduce postage and packaging costs. Whether it’s by cutting those unnecessary bits of wrapping that add weight or using smaller boxes to bring down those measurements, there are plenty of ways for you to reduce packaging costs.
Here are some of our favorite tips!
1. Compare Carrier Prices
Much of the money you spend on shipping will be determined by the carrier you use. Each has its own criteria for setting costs, so seeking out a reasonable partner to work with will go a long way to reducing what you spend on shipping.
It is worth noting that a well-known company might charge more from the get-go than a smaller, yet equally reliable company as a result of its established reputation.
Consider the options available to you carefully when picking a carrier. Always balance high-quality service with affordable costs, to ensure that your customers remain satisfied.
2. Use a Good Packaging Service
Making sure you get your packaging supplies from a trustworthy source is vital to keeping overall shipping costs low. It’s no good working to make your postage and packaging process efficient if you’re constantly having to replace faulty or poorly made packaging materials.
The ideal packaging supplier is a company that ensures sturdiness without adding too much weight to what you’re sending.
Take a look at suppliers and find someone who supplies packaging materials in the sizes and shapes you need. Reviews can help you to determine if their products truly are reliable.
3. Opt for Longer Delivery Windows
Giving your customers what they want as soon as possible is an admirable goal. But next-day shipping is far more expensive than deliveries that take a little longer.
If you’re supplying something that can wait a day or two longer, opt for the wider window of delivery. It will save you money at no significant inconvenience to customers.
Lower Your Shipping Costs Today!
When you reduce shipping costs, your company will feel the benefits. You can invest more into the long-term future of your business.
At Packaging Fulfilment Co., we know exactly how important it is to make your shipping process cost-efficient. If you’re looking for a new packaging supplier, be sure to contact us today so we can help you get the best for your business!
