eCommerce Shipping

10 Proven Tips To Reduce Shipping Costs For eCommerce Businesses

  Apr 25, 2024  

Shipping is costly. 

As reported by Statista, India’s direct-to-consumer (D2C) brands are likely to reach 200-250 thousand by 2025. 

The booming demand for eCommerce in the last few years has created a shortage of essentials such as trucks and warehouses. 

Due to higher demands, courier partners occasionally increase their shipping rates. With stiff competition from Amazon, shipping is all the more difficult for smaller businesses. Customers’ expectations for free and faster shipping are difficult to fulfill. 

Are you sailing on the same ship? If you look forward to saving some shipping costs, you are in the right place. Read on to learn tips and tricks!

Top 10 Ways to Reduce Shipping Costs

Low shipping rates are directly proportional to an eCommerce business’s profit margins. Numerous ways can be figured out to reduce shipping costs, and the money saved can be used for basic business operations.

Negotiate With Courier Companies 

Plenty of courier companies operate in the Indian markets. Hence, before you zero in on a courier partner, it is essential that you negotiate the prices for bulk orders. Most sellers collaborate with the first carrier they encounter—that’s a bad idea! 

Most carriers change their prices based on the sellers’ volumes. The higher the volume, the lower the prices. The best way to find a shipping partner is to visit the offices of the local couriers and talk to them about their pricing structures. Get an idea about the factors (size, weight, etc.) determining the price of sending a package to your customer. Some of them also offer payment processing in a package deal, look for those too. 

Opt for a Shipping Aggregation Platform

A shipping aggregation platform is one of the best ways to reduce shipping costs. There are several benefits to choosing a shipping platform. They have pre-negotiated rates with local and national carriers, ultimately leading to huge cost savings on bulk volumes.

These platforms integrate with multiple platforms, so sellers can compare the prices of 10+ courier partners and select the most pocket-friendly option for their business. These platforms also save costs by simplifying the shipping process, workflows and automating tasks like generating shipping labels, manifests, and invoices.  

These shipping solutions minimize the risk of lost or damaged shipments through security covers.

Optimizing the Package Dimensions

Optimizing packaging can reduce the shipping cost. Focus on the size and dimensions of the packaging. Packaging material also matters, so choose the smallest possible box and consider custom packaging solutions. 

Many lightweight and durable packaging materials are also available on the market that can ensure the protection of your items during transit. For example, using packing materials like bubble wrap or packing peanuts can provide sufficient protection while being lightweight. These can also help you save a lot.

Remember, shipping heavier packages costs more unless you have opted for flat-rate shipping. If you haven’t, try to reduce the dimensions of the package as most companies charge more if the size of the box is large. 

Moreover, if your product is small, unnecessarily shipping it in a vast box can not only incur more costs but also raise the risks of damage. 

Opt for Flat Rates Shipping  

Flat-rate shipping is one of the best types of shipping. In this type of shipping, a price is fixed between the seller and the courier. The price is determined by the packaging in an envelope or box rather than the weight and dimensions of the product that is sold. 

The price remains standardized regardless of variations in weights, dimensions, delivery locations, etc. Thus, the price of sending products becomes predictable. This becomes a cost-effective and fuss-free option as there will be no weight discrepancies. Also, it is straightforward, reducing the uncertainty at checkout and the chances of cart abandonment.

Flat rate shipping is one of several types of shipping rates you can charge customers at checkout using Shopify. You can create flat shipping rates for any order within a shipping zone—or orders within price or weight ranges.

For example, you could set one domestic flat rate of Rs 50  and another flat rate of Rs 30 when orders exceed Rs 2000. 

Use Packages Given By Your Carrier

If you are using your boxes to ship your products, you must stop! Yes, it might help you with the branding, but it can be heavy on your pockets. Carriers like FedEx charge an extra fee if you use your own packaging. You should switch to using the packaging provided by the carriers. 

Look for Discounted Packaging Materials

Collaborate with premier shipping carriers and ask for discounted or sometimes free shipping supplies. Also, if you are not using larger shipping carriers, you should consider using packaging material like bubble wrap, poly mailers and dunnage. These materials can be purchased in bulk quantities, which will save a lot of costs 

Pay for Shipping Online

Did you know you can save up to 16% on priority mail orders through USPS just by paying for shipping online? And for express shipping, the savings can skyrocket to 60%. Imagine the impact on your monthly shipping costs. Plus, enjoy the added perk of free pick-up!

Choose Prepaid Shipping

Prepaid shipping offers a discount of up to 20%. This means that you buy a bunch of shipping labels and put them on packages when they are going to be shipped out instead of paying for each one when you have to ship it. This is the ideal choice for people who know that their company will ship out the same-weight packages again and again.

Consider Using Third Party Insurance

Shipping insurance can eat into your profit margins, especially for high-value items. While many choose insurance from the shipping company, opting for a third party could lead to substantial savings. It’s often more affordable than what your shipping company offers. 

Ensure Accuracy in Billing

Shipping charges can vary, so including all applicable fees when billing your customers is crucial. Providing an accurate shipping estimate to customers who are covering the shipping costs prevents you from shouldering unexpected expenses.

How Can RapidShyp Help Reducing Shipping Costs?

RapidShyp is a comprehensive shipping solution that streamlines the entire process, from order placement to delivery. By leveraging bulk shipping discounts, optimizing route planning, and providing access to discounted shipping rates from top carrier partners, RapidShyp significantly reduces shipping costs for businesses. 

Additionally, its advanced technology automates shipping tasks, minimizing manual errors and maximizing efficiency. With features like address verification and real-time tracking, businesses can ensure accurate deliveries and reduce the risk of costly RTOs. Ultimately, RapidShyp empowers businesses to achieve cost savings without compromising on the quality and reliability of their shipping operations.

Pragya Gupta is a content marketer with over 7 years of experience in writing, content strategy, and PR. At RapidShyp, she’s involved in research, editing, and writing for the blogs, reports, shipping encyclopedia and other brand assets.

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