4 Ways to Reduce Your Business Shipping Costs

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For many small businesses, shipping is one of the most significant costs. Whether you deliver goods internationally or ship your products locally, there are major costs associated with things like freight, transport, fuel, packaging, and postage.

If you're not careful, these expenses can become overwhelming and threaten to eat up your profits. But by being resourceful and employing some clever strategies, there are several ways to save money. To get you started, here are four effective ways to reduce your business shipping costs.

Talk to multiple shipping carriers

If you transport large quantities of goods a long way, you will no doubt need to employ the services of a shipping company to get your cargo where it needs to be at the right time. There are so many different carriers available worldwide to meet a variety of different needs. And it’s worth negotiating with multiple carriers to find the best deal for your business. If shipping internationally, an air freight company might be quicker and more efficient, but it comes at a price. Ocean freight shipping is simple and a lot more cost-effective, as long as you can handle the longer shipping time. Ask each carrier for quotes and don’t be afraid to walk away if they can’t provide you with the deal you’re looking for. Make sure you closely scrutinize the contracts to ensure there are no hidden charges or loopholes.

Be more fuel-efficient

If your company has a fleet of transportation and delivery vehicles, fuel is no doubt one of your biggest expenses. While there’s no getting away from the fact that you need it to get your goods to their destination, there are ways you can reduce the amount you need. Purchasing a fleet of more fuel-efficient vehicles might be an extreme expense, but it will save you money in the long run. In the short term, another option would be to train your drivers in more fuel-efficient driving techniques to reduce their gasoline consumption over long journeys. There are numerous ways to achieve this, such as accelerating gently, coasting to decelerate, and refraining from idling while stationary.

Buy postage supplies in bulk

Individually, postage supplies such as cardboard boxes, bubble wrap, tape, and other packing materials don’t cost a lot, but in large quantities, they can eat a tremendous chunk out of your budget. By buying these supplies in bulk you’ll be able to negotiate a much better deal and spend less money each month. Some shipping companies will provide postage supplies to companies at a discount, so it is worth doing some research to see if you can find a good deal.

Insure with a third-party

When shipping valuable goods, taking out insurance is a no-brainer, and most shipping companies provide this service as an add-on. Yet there is a good chance they are ramping up their prices for the added convenience. You may be able to save a great deal of money by taking out a policy with a third-party shipping insurance provider. In some cases, it might be nearly half the price.