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How to Save Money on Shipping


Shipping products is an essential yet often expensive aspect of a business that many small operations and even some larger ones fall short on. Typically, logistics management provides a means for the department to function optimally and efficiently but that too can add to the expenses of shipping. Since the primary function of shipping is to get products from point A to point B, many companies don’t put the efforts into tailoring their shipping strategy to save money.

They should. Here are some ways to do just that.

Work with your carrier
Whoever your chosen carrier is, they almost definitely have a business specialist who can help you reduce costs and increase efficiency. You will need to work with the specialist to detail any shipping requirements that your business may have and match them with the carrier’s fees and services. According to a quote from Tompkins Associates in Entrepenuer, “businesses that don’t work with their carrier to map out shipping criteria can spend as much 40 percent or more in fees than those that do.” Consult with the specialist about aspects such as air and ocean logistics for international shipping and cargo shipping by ground.

Set-up shipping costs
Your business might cover the costs of standard shipping but you know that the prices of premium shipping options such as expedited or two-day can get pretty expensive. Rather than having to cover these costs, establish a shipping policy which dictates which shipping methods you will cover and what will need to be paid by the recipient. Inform the sales associates and customer service representatives about the policy so that they can inform customers.

Consolidate shipments
If you’re only shipping small quantities or low-weight items, then you might get charged more for “less than truckload” shipments. Instead of accepting these fees and incorporating them into your budget, consider consolidating shipments with freight forwarders. Freight forwarding companies will consolidate your shipment with other cargo to create a full truckload and save you any unnecessary costs.

Other ways to save money could include actions such as using recycled materials to package your goods. Using recycled bags and boxes to ship your products also provides your company with eco-friendly transportation which is a great public relations move. There are many other ways to save money and you can consult with a cargo shipping company for more details on how to do so.

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