4 simple shipping cost reduction methods you’ve been ignoring!

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A requisite in business is innovative cost cutting. It doesn’t matter where you are in the business cycle, you will always look for ways to ease expenses and cut costs. Cost cutting is a form of improvement because it helps you save valuable financial resources.

Reducing cost works in the same way for online retail. Online retailers are always looking for new and innovating ways to minimize their expenses. Plus with rising marketplace costs hot on their trail, cost cutting is a pressing requirement!

So where should the trimming start? The logistics and shipping end looks like a good place to begin!

How to save money when shipping products?

Method #1 – Using cheap delivery services

If you have the option of choosing your own delivery service, feel free to explore your options. But remember to be cautious! India post could be is a cheaper option compared to private delivery services, however, it could cost you resources in other ways.

Online home décor brand, ExclusiveLane, told IOS that they were required to wrap and stitch their products in jute for India Post to accept them. To complete this it took the ecommerce firm 2 to 3 hours. This is an additional packaging requirement that costs money. And execution cost time.

Method #2 – Eliminating excess weight

We asked Browntape, leading multichannel order and inventory management company, how their online sellers cut shipping cost. We were informed that over packing cost sellers money too. For starters, excessive packaging material will add to the dead weight of the product. Secondly, additional (unwanted) packaging increases product dimensions thus volumetric weight. Both dead weight and volumetric weight are used to determine the cost of shipping. The bigger these numbers are the more you have to pay towards shipping.

Reduce product weight – To save money make sure you send the consumer only what is required and nothing more. Instead of sending heavy manual books with your products trade them in for CDs or direct consumers to use the manual available online.

Reduce packaging weight and dimensions – If triple packing is not required don’t do it! Even the use of too much tape can increase product weight. Try to use light packaging that isn’t too bulky, this way you can decrease volumetric weight and dead weight. You can also reduce the dimensions of your products by sending consumers dismantled pieces in compact packaging. For example, furniture, large tool, etc.

Method #3 – Provide correct details

Sometimes online sellers end up paying massive shipping costs due to carelessness, Browntape informed us. Online marketplaces require online sellers to enter the weight and dimensions of their products after packing them. If you enter the incorrect information you could end up paying extra for no real reason at all.

Again you need to make sure you used the right kind of packaging for your products. Marketplaces offer packaging material like polyethene bags and cardboard boxes in different sizes. Make sure you utilize the packaging that covers your product’s dimensions. For this, you need correct details. So take the time measure your products and double check the details you provide.

Method #4 – Combine orders

Did you know order consolidation can help you save shipping money? If you receive multiple orders from the same customer try to deliver all the products within the same package. You waste money by packaging and shipping one order at a time. Online marketplaces allow sellers to consolidate the orders received from the same person requesting delivery to the same address.

Which of these cost-saving methods have you tried? How did they work out for you? Let us know in the comments below.

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1 Comment

  1. Will online channels allow consolidation of same buyer orders ? I doubt.

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