4 Tips on How Small Businesses Can Reduce Shipping Costs

Whether you like it or not, shipping is not cheap, and courier companies raise their shipping rates every year. Many factors may cause this, including the increasing demand in the e-commerce sector, resulting in a shortage of truck drivers and warehouse spaces. The continuously raising of the bar for faster free shipping by market leaders also cause roadblocks in replicating cheaper shipping services for small businesses to fulfil their delivery services.

Now, the question is, how do small businesses reduce shipping costs and improve their performance in terms of parcel delivery? Looking for a cheap courier in Sydney might not be the sole solution to address above average shipping costs because shipping has many variables that contribute to its price.

Find out below how you can potentially lower your average shipping costs every time you send a package within Australia or abroad.

1. Shorten Shipping Distance Through Fulfilment Centres

The primary variable that contributes to shipping costs is geographical location. You are likely to pay more if you ship to destinations far from you. The farther the shipping destination is, the costlier and slower it is to ship packages.

Reducing shipping distance will save you a lot of money over time and benefit yourself from more shipping options with lower prices. To do this, leverage partnering with companies that have warehouses or fulfilment centres.

Availing of a fulfilment centre service is ideal for holding business inventories of selling goods. Although big businesses can utilise fulfilment centres when it comes to storing products because this solution works best with volume shipping, small enterprises can have a slice of the cake, too.

Unlike warehouse solutions that primarily offer complete storage solutions, fulfilment centres are more active with various operations. Besides storage solutions, these centres also generate pick lists, assemble items, pack boxes, label shipments, ship orders, and manage returns.

When a fulfilment service is in place, you can reduce shipping distance by consolidating parcels in one place. Now that these packages are meant to be shipped at once in a single box, shipping frequency is lessened, saving you more monetary resources and cutting down each parcel’s shipping distance.

2. Reduce Parcel Dimension and Weight

Lower shipping fees will increase a business’s profit margin. If you charge lower shipping costs, your customers are likely to complete a purchase with a positive customer experience.

According to a study in 2019, three out of four people said that free shipping is a must. Believe it or not, costly shipping is the number one reason people don’t proceed to checkout. This leads us to the second tip on reducing shipping costs when sending parcels in Australia.

Cutting down package weight is another efficient way to reduce shipping costs. But how? Even if you cannot reduce the weight of what you place in your package, you can trim down the weight of the packaging and infill.

Below are packaging hacks you can try whenever you pack items for your next shipment.

  • Instead of using a box, use a bag when packing clothes, garments, or other items made of fabrics.
  • Use the lightest corrugated box among various thicknesses that will ensure the protection of your products.
  • Consider the size and weight of the products to max them with the box. Make sure the box isn’t much bigger than what you put in them. It will lessen the amount of infill, like bubble wraps and air pillows, needed to secure your products.
  • Assess the weight of your parcel to identify the number of infills needed. This way, you can also reduce the weight of your package.
  • As much as possible, minimise using too much product packaging because it will only add weight to your package. Only use the suitable packaging layer to protect the product during shipping.

3. Leverage Discounts on Packaging Supplies and Shipping Rates

An e-commerce business’s worst nightmare is return and refund because of damaged items, and this is the last thing every business owner would want to happen. Aside from being a waste of time, it is also a waste of resources. It would not be a significant loss if they took advantage of discounted packaging materials and shipping rates in this circumstance.

When you ship products, make the most of free or discounted boxes provided by some courier companies. Additionally, purchase packing supplies, like boxes, infill, and poly mailers in bulk to get discounts and other deals.

Don’t be scared of the higher upfront investment in buying these materials. They won’t run out quickly, and you will reduce the average costs every time you ship parcels. You can go far as recycling packaging materials or finding free shipping supplies.

4. Negotiate with Couriers and Get Help from Experts

Whatever you ship, whether domestic shipping or overseas shipping, do not hesitate to negotiate with a cheap courier in Sydney. A volume shipper can get lower rates from shipping carriers because it is how businesses encourage more customers to avail their services. The more services a customer avails of, the lesser they spend.

For a bigger e-commerce business, they may secure discounted rates by engaging with a courier partner in a long-term agreement. Sellers selling through an e-commerce platform may be eligible for lower rates, and they can check if their products are qualified for cheaper shipping fees.

While shipping carriers offer shipping insurance for your parcels, you can save nearly half the price by availing from a third-party package insurer. They are usually cheaper compared to direct shipping insurance from courier companies. Nonetheless, you must consider your parcel’s volume and destination if third-party shipping insurance applies to your shipping needs.

Couriers by Demand Express Provides Courier Solutions for the Value of Your Money

If you are looking for a cheap courier in Sydney, you might want to consider Couriers by Demand Express. With our 350 substantial fleets of delivery drivers in Australia, we can guarantee on-time and safe delivery of your parcel wherever its destination is.

As we expand our operations, we want our customers to be part of it. If you are too, get in touch with us today. Our doors are always open to welcome you, and we would be glad to cater to your shipping needs. Call us on 02 9095 5000.

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