Postage and shipping costs are very common for every business. All-sized businesses have to bear this cost. Whether you ship internationally or domestically, the shipping cost is one of the most important costs among total business expenses.
A recent study states that many shoppers leave their carts because the shipping cost is coming their way unexpectedly. This can be a loss for companies and that is why they keep their customers busy with exciting offers. This sound so good and kind but at the same time it could affect the profit margin of the companies. Most of the time they have to deal with increased shipping expenses. You can effectively reduce your shipping costs even if you want global shipping, by joining hands with the right shipping partner.
Shipping Partners, Shipping Cost, And Saving
In eCommerce businesses, it is not possible to work with a single shipping partner because not all shipping partners offer delivery in all areas. Having multiple shipping partners makes the delivery faster even during the peak season.
Also, you have the option of choosing the shipping partner with the lowest rate. All you know shipping costs are unavoidable in any business but you can minimize these costs. Many other factors can help to cut down the shipping cost. These are as follows:
You should know how many shipping zones your package is crossing because the more zones your product crosses the more you have to pay for it. You can have a regional carrier for every shipping zone because it will reduce the cost of shipping as well as make the delivery faster. Also, try to use a fulfilment centre that is closer to your customer and it will reduce the number of shipping zones. Reduction in shipping zone means you’ll have to pay less shipping price.
Free shipping is a word that attracts the attention of many customers. However, they find it more appealing than the discount offered to them on any product. Providing free shipping to the customers your expenses may increase. But, by raising the cost of the product you can minimize the expenses and save shipping costs.
Multiple Shipping Carriers
When business owners have multiple shipping carriers they can compare the services and prices offered by each of them. They do not have to search online and decision-making is easier.
Having multiple shipping carriers is a time-consuming process but it has several benefits. For example, you can choose the best carrier service with the lowest rate for your shipment. And, if one shipping carrier does not provide the best service you can switch to another. You can save shipping costs by choosing among them.
Postal shipping is a very good and wise decision when you are shipping internationally. In postal shipping, the products are shipped to a local post office and from there it is delivered to your customer. However, everything has its advantages and disadvantages. Postal shipping has its disadvantages that it can not be tracked. But when you are targeting to reduce the cost postal shipping is the best deal and also when you ship internationally.
The packaging is a charge on weight and dimension. This is also called dimensional weight pricing or DIM pricing. When you are using a packaging material of your own be very careful about it because you are paying for the weight and dimension. The best option is to use the packaging of the carrier because it is specially designed for your requirement. You can get away with hefty shipping charges charged based on dimensional and weight pricing.
A flat rate means that all the items you are shipping have the same shipping rate. It does not matter if the item is very costly or less costly. The shipping rates are fixed for every item. These rates are fixed by the eCommerce site or by their shipping partners. Flat-rate shipping may not have a direct effect on cutting down the cost but it has its benefits.
The flat rate shipping helps in reducing shipping costs by increasing more orders for your business. More orders mean a more profit margin for your business. The profit generated can be used to meet the other costs.
While you can adopt different methods, partnering with a shipping aggregator like NimbusPost can be the best idea to ship at the lowest international courier charges. As NimbusPost offers seller-friendly shipping services across 196+ countries at the most competitive rates, you can earn a good margin on your sales while shipping at minimal rates.
As your companies grow you will invest more in shipping but if you practice these smart tips you can minimize your shipping cost. The shipping costs are unavoidable and you can save your shipping cost by wisely following the above-mentioned tips.