For some inevitable reason, shipping rates increase every year. Unfortunately, this fee is a crucial factor for any eCommerce company. So, it’s a must for sellers to decrease such expenses. There are various ways to reduce shipping costs in 2022. Take note of these 8 quick tips as we go along.

Lessen the shipping distance

The farther a shipping destination is, the more expensive it is in eCommerce delivery. Traveling many shipping zones calls for additional shipping fees. Also, it slows down the transit time of every package.

Fortunately, you can eliminate this issue. Lessen the distance of the shipping area by partnering with multi-warehouse fulfillment centers. It saves up a lot of funds over time. Also, it helps out to reduce shipping costs. Plus, it provides customers with better shipping options at a more affordable price.

Weigh down packages and minimize dimensions

The weight and dimensions play a vital role in calculating shipping costs. You should have an idea of the sizes of FedEx and UPS boxes.

Generally, heavy packages cost more unless you apply flat-rate shipping. Also, a lightweight product that needs a giant box requires a larger fee. Packages that take up a lot of space equal bigger dimensional weight. In short, it means a more expensive shipping rate.

Avoid this by buying a postage scale. It comes in handy if you print your label and ship it straight from your shop. It provides a better estimation of the package weight. Also, pack lightweight items in a smaller box.

It helps in saving a substantial amount in the long run. Most importantly, it is an excellent strategy to reduce shipping costs.

Look for marked-down supplies

Buying packaging supplies like bubble wrap, dunnage, air-fill, and poly mailers often hurts the budget. Let’s be practical. Why buy packaging supplies when your carrier can provide them?

So, look for shipping companies that provide these materials at a discounted price. For example, UPS, USPS, and FedEx are big carriers that offer free boxes and envelopes. Take advantage of this. It saves you a lot of money from such additional costs.

Partnering with trusted shipping companies is an investment. There’s always a risk. So don’t be scared to take it. You might not see the benefits right away, but this helps reduce shipping costs over time.

Take advantage of discounted shipping fees

Most shipping providers offer pricing discounts. That’s great news, isn’t it? However, carriers consider the shipping volume of their clients. Fortunately, it doesn’t mean you have to do hundreds a month.

It’s a win-win situation for both the shipping company and the seller. Carriers get to have more clients while you save from the tremendous shipping fee. Thus, it helps to lower the shipping costs.

Talk to your trusted shipper. Negotiate with them about the volume discounts. In return, offer your loyalty by sticking with them. Nevertheless, never compromise the quality of the shipping solutions.

Make sure that your chosen carrier guarantees excellent delivery performance despite the lower costs. Be wise when taking such opportunities to reduce shipping costs.

Get Third Party Insurance

Shipping insurance places severe damage on the profit margins. So, it’s necessary to lessen such expense on your end. Third parties often charge less to insure shipments, while shipping carriers charge more. For example, shipping companies bill $0.90 for every $100 insured goods.

On the other, third-party insurance charges $0.55 for every $100 insured goods.

Getting in touch with third-party firms can save a lot of money over time. It protects every valuable good sold to your customers. Thus, it helps you to reduce shipping costs yearly.

Choose to be Prepaid

Prepaid shipping costs less than you can imagine. Often, it offers discounts from 10% to 20%. If you think about it, it’s a huge sum to reduce shipping costs. You can allocate the money to other aspects of your budget for the business.

If you pay through prepaid, it means you buy a bunch of shipping labels upfront. Then, you put them on every package ordered to be shipped out. That’s why it saves you more funds than paying for each shipment.

Plus, it lessens your time in preparation as well. However, it is ideal for sellers with the same weight and dimensions.

Monitor the billing

Lack of knowledge and management for the billing procedure causes a hike in shipping rates. Merchants end up paying for more when you can settle for less. Also, customers tend to doubt where their money goes without properly disclosing details.

So, continuously monitor and be accurate with the details. Being transparent helps you gain loyal patrons. At the same time, it is the best way to reduce shipping costs in the long run.

Factor all the shipping charges when you bill your buyers. Make sure to provide an accurate estimate about the shipping fee they’re paying. Who would want to pay for their expenses blindly, right? So, they should have a clear understanding so they can absorb it.

Thus, it helps you in justifying it.

Pick hybrid services

Make sure your website talks about hybrid services. If your eCommerce website needs a full revamp to show your products and best shipping options, you can find help at DesignDoxa.

Hybrid services are the so-called logistic companies like UPS and FedEx. These are famous names in the industry for picking orders. Also, they transport packages until they reach the residential area for last-mile delivery.

They offer a cheaper service but with high-quality performance. However, there’s a downside to a slower transit period.

Fortunately, there are fulfillment centers like Red Stag Fulfillment. It helps in preparing and picking up the packages. Afterward, ships the parcels to the post office nearest to the recipient’s location. It sounds like it does the work for you, but it actually does.

Although it looks like it will cost you more, in reality, it costs less. Thus, it reduces shipping costs for the whole year.

Payment for shipments takes almost half of the funds. If this happens every year, it’s frustrating and discouraging as well. Luckily, there are easy ways to manage and prevent its further increase. Grab all the opportunities advised in this article.

Also, partner up with Red Stag to reduce shipping costs and save more for the future of your venture.