Reduce International Shipping Costs: How can Kiwi Businesses lower supply chain costs?
How can you reduce international shipping costs, while being at the bottom of the world?
New Zealand exports often face a tyranny of distance, but there are ways to reduce international shipping costs and courier goods around the world more efficiently.
The 2024 ExportNZ DHL Export Barometer shows that 89% of New Zealand exporters are carrying more business costs compared to the previous year, with 85% of exporters experiencing increases in supply chain and logistic costs.
So, if you are feeling the pressure, you aren’t alone. But the key thing to focus on is, how you can save on shipping costs, without compromising on the service you provide customers.
Understanding the Rising Costs
It’s important to understand the rising costs businesses are facing on a global level.
As online shopping continues to open opportunities for Kiwi businesses globally and supply chains traverse the globe, businesses must evolve to meet customer expectations, and also remain profitable.
It’s important to think holistically about costs; sometimes saving costs in shipping means you are increasing costs elsewhere. For example, if your parcels aren’t arriving on time and customers need extra support while they wait or credits to compensate them, you probably aren’t saving money overall.
So, as you cut global courier costs, makes sure you aren’t compromising on service, because compromising on service usually means more costs or less sales in the long run.
“89% of New Zealand exporters are carrying more business costs this year compared to the previous year, with 68% of exporters experiencing increases in supply chain and logistic costs.”
Practical Steps to Reduce International Shipping Costs
Audit Your Current Shipping Costs
In order to understand your current shipping costs, start by auditing what’s in place.
Consider what aspects of shipping are draining your budget. Break down the costs involved—it’s likely a mix of packaging, labour, courier services, and import/export fees.
By pinpointing the most problematic area, you can focus on making targeted improvements.
Pack Light, Pack Smart
How you pack your orders will contribute to your costs. Have you ever ordered something online and received it in a box that was much larger than needed? You probably wondered what the sender was thinking. The truth is, they likely hadn’t given it much thought.
To reduce your shipping costs, start by packing your items smartly and efficiently. Choose packaging that fits your product snugly—this will save on materials and help you avoid extra dimensional weight charges.
Use lightweight packaging to keep the weight down, or switch to padded envelopes if appropriate, but always ensure your product is well-protected.
Look For a Flat-Rate Option
Have you thought about implementing a flat rate shipping option for your customers? Shipping costs can be unpredictable, making long-term planning and delivery challenging. Consistency, along with a reputation for speed and reliability, is crucial.
Flat-rate shipping offers a straightforward solution by maintaining a fixed cost, regardless of your packages’ size, weight, or shape. You might want to negotiate the specific flat rate to suit your needs, but having a clear, consistent cost simplifies your planning and reduces uncertainty.
Practical Steps to Reduce International Shipping Costs
Exporting goods internationally can be a significant expense for New Zealand businesses. However, with strategic planning and smart practices, Kiwi exporters can lower their shipping costs, without compromising on service.
At DHL Express, we have been providing quality shipping services to businesses of all sizes for more than 50 years. We are experts in the shipping industry, and our team is dedicated to ensuring that your shipments arrive on time and in perfect condition.
Sign up for an account today or get in touch with our team to learn how DHL Express can help your small business in New Zealand.
