The Big Business Guide to Reducing Shipping Costs

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Starting A Business With An Employee Time Tracking Software: The Why And The HowNEW YORK – When you operate a businessthat ships, it’s very important that you have a good understanding of how to make it all work. This doesn’t just mean understanding the logistics of a shipping operation, but also ensuring you’re getting the best overall cost for your shipments. After all, the more money you save—even on shipping—means more overall profit for your business. If you are currently a player in the shipping game, then there are plenty of things you are already aware of. However, there are many other steps you can take to reduce your shipping cost. Let this guide to big business shipping help you make the right choices to get your costs in the right place.

Get help.

While you may want to tackle the shipping part of your business on your own, it could also be extremely beneficial for you to get help from trusted sources. There are many different companies out there willing to do the shipping for you or provide you with analytics and metrics on how your shipping is doing. According to Reveel, a company dedicated to providing shipping intelligence to companies throughout the world, “Companies can increase their profitability just by being cognizant of what carriers could actually be charging instead of the up-charged pricing, and this levels the playing field no matter the size of your business.” If you are currently handling shipping in-house, consider getting help from a professional company instead.

Know your options.

When it comes to shipping, you have more options than you probably realize. As a business owner, it’s important for you to not only be aware of these options but to also determine which is the right choice for your needs.

  • Handle shipping in-house
  • Pay for drop-shipping
  • Bring packages to UPS, USPS, FedEx, etc.

While all of these are viable options for your business, they each have their own set of pros and cons. Don’t just assume that because you’re currently doing one of the three options above the others don’t make sense. Take the time to look at all the options again to determine if maybe now is the right time for your business to switch to another method.

Learn from your mistakes.

Because you’ve already been shipping for your business, you’ve probably learned a lot of valuable lessons by now. Instead of just forgetting that mistakes have happened, use them to your advantage so you can make necessary adjustments. For instance, do you need to post your shipping policy on your website to reduce customer complaints? Do you need to switch to different packaging to reduce overall shipping cost? Is there a better time of year where you can snag discounts on shipping rates? The more you use your past mistakes to your advantage, the more cost-effective your shipping will become.

Price it out.

Your shipping costs are going to depend on a lot of factors, from destination to size of the package to overall weight. This is why it’s essential for you to price out your options before you decide on a package type or vendor to use. Even if you’re currently partnered with a shipping carrier, it doesn’t hurt to price out some of their competitors. You may just find that you get a better deal or better customer service by switching providers. Plus, if you really need to save on cost, have that conversation with your sales rep. Most companies don’t want to lose your business and are willing to work with you in order to keep you happy. 

Pay attention to growth.

It’s important for you to re-evaluate the shipping process of your business as you continue to grow. For instance, maybe you were handling all shipments out of one central location, and maybe now due to growth this doesn’t make sense. Think about whether or not you need to move distribution centers or if you need to open them up in other locations. Plus, use this time to determine if maybe you need to start a distribution center overseas if your global operations have started to pick up.

Shipping is an essential part of some business operations, and the last thing you need is to either spend too much money on shipping or handle it so poorly that it becomes a customer service nightmare. If you are operating your business in the best possible way, you’ll be sure to consider all these tips and tricks to keep your shipping operation on the right foot.