How to Reduce Shipping Costs: 5 Tips for Small Business

Due to the evolution of shopping habits and rise of online purchasing, we’re long past the carefree days of the local ‘mom and pop’ store that only caters to a small, face-to-face community of shoppers, and a notable lack of pressure in getting your product into the hands of your customer. Once a revolutionary concept, shipping goods is now so firmly established in our daily lives that it stands as basic expectation rather than novel appreciation.

Though standard practice for any modern business, the logistical and financial demands presented by developing and maintaining a smoothly-run shipping system for your small business can nonetheless hit you as a difficult and stressful problem to overcome.

With that in mind, let’s go through a number of quick-and-easy methods to lower shipping costs, so that both you and your customers don’t have to worry about the ‘A to B’ of it all.

1. Audit Your Current Shipping Costs

Ask yourself - what exactly is costing me money when it comes to shipping? Take some time to outline the areas in question - in all likelihood, it’s one or more of:

●      Packaging

●      Labour

●      Couriers

●      Import/Export Fees

Once you’ve correctly identified the area that’s causing you the most hassle, you can zero in and start to make alterations.

2. Pack Light, Pack Smart

Ever bought something online and received a box that could have been two or three sizes smaller? You probably wondered what went into the thought process of the person who sent it out. Chances are, they didn’t think too hard about it.

That’s not you, though. You’re going to cut costs, not corners, and it makes sense to start with the baseline of smartly and efficiently packing your goods. Scale your packaging to neatly and tightly fit your product - not only will this save on overall materials, but you’ll sidestep unnecessary dimensional weight charges in the process.

Speaking of potential weight-based penalties, opt for lightweight packaging to avoid a harsh negotiation with the scales, or consider swapping out boxes altogether for padded envelopes should the situation safely allow for it - don’t compromise on protecting your product!

It might not seem like a colossal saving on paper, but you’ll see the benefit of a structured, slimmed-down system the more you use it. Also, you’ll save more than money with these approaches - having a swift and regular routine should free up time to focus on other areas of your day-to-day duties.

Tip: Learn about sustainable packaging solutions and why it’s important to your business

 3. Look For a Flat-Rate Option

A straightforward, but possibly very beneficial one here. Shipping costs are naturally in a state of flux, which isn’t terribly helpful for long-term planning and delivery prospects. Consistency is key, as is a reputation for speed and reliability.

Flat-rate shipping is a ‘what it says on the tin’ method that keeps your cost at a set rate, regardless of the size, weight, or shape or your packaged product. You may wish to negotiate the exact flat rate to your satisfaction, but once you have a clear picture of a regular calculated cost in front of you, it’s one less variable to worry about.

4. Offer Customers a Free Shipping Threshold

Another common - and highly attractive - practice with online orders is the ability to receive free shipping. This isn’t offered by every business, and a heavy shipping cost can prove a deal-breaker once someone gets to the final checkout screen.

If you can afford it, consider including the offer of free shipping should an order exceed a predetermined amount - enough to cover your costs, while keeping your customer happy, in turn keeping you in their mind for repeat business.

However, if ‘free’ is a four-letter word that upsets you, introduce a tiered system that also includes express and leisurely delivery-time options, with the appropriate level of expense attached to each.

5. Implement Technology Solutions

The future is now, and with a range of cutting-edge technology options out there to assist you, there’s no time like the present to see how your business can use these methods to your advantage.

From integrated logistics tools to warehouse automation, to innovation when it comes to delivery and returns, to customer retention and upselling, to the use of AI-driven computer vision, smart and successful implementation of our available technology-focused solutions are as efficient as they are easy to adapt to.

But don’t just take our word for it; there are numerous positive case studies you can read up on to get a more personalised perspective.

Conclusion

Navigating the complexities of shipping costs for small businesses requires strategic planning and thoughtful execution. As the landscape of commerce continues to evolve with the dominance of online shopping, businesses must adapt to meet the expectations of consumers while maintaining profitability.

By implementing the tips in this article, such as auditing current shipping costs, optimising packaging, and exploring flat-rate options, small business owners can mitigate expenses and streamline their shipping processes.

Additionally, embracing innovative solutions like warehouse automation and offering incentives such as free shipping thresholds can enhance customer satisfaction and loyalty.

Whether your business is importing or exporting, DHL makes shipping simple. Whether it’s finding the best rate quotes and up-to-date transit times, availing of same-day services for urgent and critical shipments, or cutting through the red tape on duties and taxes, we have a go-to solution for all of your needs. 

What’s more, a DHL Express business account gives you access to fast, door-to-door courier-delivered shipments with savings of up to 60%. So let us handle it, and start shipping with DHL today.