One of the biggest costs for many businesses is shipping. Getting the product from your facility into the hands of your customer is important. While you may be able to pass on some of the costs to the customer, if you pass along too high of a cost, you can lose business. Keep in mind these tips that will help you save!
Think about how you package your product. Are there changes you can make to the packaging that will make your shipments smaller or lighter? Even the smallest change can add up if you are shipping a large number of items each week.
Utilize Cargo and Freight Options
If you are shipping large quantities, using a cargo company may make sense. For instance, air and ocean cargo to Latin America or air and ocean cargo to the British Virgin Islands is often cheaper than using a service like the USPS or UPS. Call and speak to an expert to find out if this could save you money.
While you can’t drop ship a custom-made product, it may be more cost effective to drop ship accessories or literature. When you drop ship, someone else is doing the shipping. This is especially effective for sending simple products out of the country.
Do you have any local customers? It may be worthwhile to allow local pickup. This may even increase your customer base in terms of attracting those who are located geographically nearby or who have personal carriers that travel in the area.
Know Your Prices
Keep on top of the prices by the major shipping carriers. While you may have gotten the best deal from FedEx last year, it could be that a new service makes USPS more affordable. Prices and services are always changing.
While you cannot completely eliminate shipping costs from your budget, making a few small changes can help you reduce them. Whether you are paying the costs or passing them to your customer, reducing shipping costs will improve your bottom line.