5 Effective Ways To Reduce Shipping Costs
Suppose you’re running a business that relies on shipping products to customers. In that case, you know how expensive delivery and freight costs can be. But fear not – we’ve rounded up some tips to help you reduce these costs and save your business some serious cash. From negotiating rates with carriers to optimising your packaging, these strategies will have you shipping smarter and quicker.
Ship on off-peak days
One effective method for reducing delivery and freight costs is to ship on off-peak days. This means scheduling freight for late in the day or early in the week to take advantage of lower rates. By doing so, shippers can save up to 10% compared to peak days. Additionally, choosing to use backhaul shipping can also provide significant savings.
How fast do you guarantee your deliveries, and can you take advantage of lower shipping costs due to being delivered later? In a world where Amazon Prime offers same-day delivery on selected orders (as are Argos), consumers live where everything is delivered instantly or as soon as possible. But by providing a slower delivery to orders, you can further save money on costs without failing to meet expectations.
Local carriers for reduced shipping
Have a look at how you need to ship your packages and use local services as much as possible. Did you know that local carriers often charge less than their bigger counterparts and can deliver your parcels cheaper? This is because they don’t manage the same volume of packages as major carriers allowing them to offer a better service.
Consolidate freight shipments
By consolidating freight shipments, businesses can save on delivery and freight costs. This is especially effective when working with a third-party logistics company that offers consolidation programs. This can benefit those shipping bulky items or packages often exceeding weight limits. Don’t forget to use a free online freight class calculator to ensure you send your consignments correctly and won’t receive any nasty surprises or added costs post-shipping.
Define your freight profile.
Defining your freight profile is crucial to reducing delivery and freight costs. You can negotiate better rates with carriers and streamline your logistics processes by assessing your shipping patterns and determining your most common destinations, carriers, and shipment sizes. Much like anything, the data you hold on your shipping processes can enlighten you on your freight profile, allow you to make more informed decisions, and cut costs where possible.
Optimise Packaging Size
To further reduce shipping costs, it’s essential to optimise packaging size. This means including a range of box sizes that can accommodate all your products, including outlier packages. By reducing packaging dimensions, shipping carriers can charge based on the actual weight of the package rather than the volumetric weight, which can result in significant cost savings. Another option is to use the carriers’ packaging materials, as they are specifically designed to maximise shipping efficiency.
By combining different methods and tactics with your shipping policy and processes, you can maximise how you move products around the country or internationally without incurring excessive costs due to incorrect weights, packaging, and not paying attention to the carriers you use.