When you have to ship products to customers, you’re always looking for the most cost-effective way to do it. The number of webshops is increasing, which makes the competition more intense. However, many small webshops are moving away from free shipping. Yet, fully passing on shipping costs to your customers is not acceptable! You need to develop a shipping strategy that keeps the passed-on costs in check, but most importantly, lowers the actual shipping costs. Here are some tips to reduce your shipping costs.
Dare to negotiate shipping rates
Every webshop wants to ship as cheaply as possible, regardless of which shipping partner is preferred. The pricing structure of all possible shipping partners is based on volume. The more packages you send, the lower the shipping rate. What many small webshops don’t realize is that they actually have a certain negotiating power. Dare to negotiate and compare prices from different shipping partners. If the number of shipments increases, don’t hesitate to renegotiate your contract.
Collaborate with other webshops
Small webshops often don’t have large volumes, which means their shipping rates are less favorable. The more packages you sell, the cheaper the shipping rate! Based on this idea, small webshops can join forces and purchase shipping capacity together. This way, they can access more favorable shipping rates and compete with larger players in the market.
Shipping to pick-up points
You can opt to deliver packages not to homes but to pick-up points. Multiple packages are delivered to a pick-up point, which allows shipping companies to offer this option at a lower price. We’ve also seen a rise in the number of packages delivered via pick-up points. Your customers often have busy schedules and can’t wait at home for that one package. For this reason, they opt for a pick-up point. They receive a notification when the package is available and can pick it up when it suits them.
Do you need to deliver every package to a pick-up point? No! Your customers want to choose where their package is delivered. Be smart! You can offer free shipping to pick-up points or charge a few euros for home delivery. You’ll find that people still choose home delivery, but by allowing the customer to make the choice, they’ll feel less bothered by paying for shipping costs.
Get your shipping costs sponsored!
If you target a specific audience, chances are there are companies that would like to advertise or gain visibility with your target group. Contact these companies and explore collaboration possibilities. In exchange for a small fee, you can add a flyer from the partner to the shipment. This way, you can reduce your shipping costs.
Of course, you won’t approach competitors for this. We’re mostly talking about cross-selling. Do you sell women’s shoes via your webshop? A flyer from a webshop selling handbags could be interesting. It gets even better if a discount code is included!
Pay attention to packaging material
Do you buy new packaging material every month? Chances are, you’re not taking advantage of discounts for larger volumes! Analyze the number of boxes and filler material you use over a longer period. Then, you can order boxes and filler material for six months or a year. This way, you can get significant discounts.
Packaging material can often be reused. Keep all usable packaging material you receive yourself. By reusing boxes and filler material, you can save a lot of money on packaging costs as a small webshop.
Package size and weight determine shipping costs
When you sign a contract with a shipping partner, you get a price per package. Of course, this price is limited by weight, length, width, and height! In other words, your package might be allowed to weigh a maximum of 30.5 kg and must not exceed predefined dimensions. If it does, you’ll have to pay hefty surcharges. In some cases, it may be more cost-effective to process the order in two packages. Keep in mind that a shipping partner considers the total weight of the shipment, including the box and filler material.
Use Sendcloud
Not a strong negotiator or don’t feel like searching for companies to collaborate with? Sendcloud offers the solution! Sendcloud combines the power of over 15,000 webshops, which allows them to negotiate sharp shipping rates with partners like PostNL, DPD, UPS, and DHL. You can benefit from economies of scale. The price advantage is not to be underestimated! What else can Sendcloud help with?
- Creating and printing shipping labels
- Sending Track & Trace codes
- Processing return shipments
Contact a fulfillment partner
Do you want to fully focus on the strategic development of your webshop without wasting time on the logistics process? Contact a fulfillment partner like Webship. Just like Sendcloud, a fulfillment partner combines the power of different webshops and businesses to negotiate better rates with shipping partners. You’ll also benefit from economies of scale on packaging materials and bring in a bit of expertise because you’re likely not specialized in the logistical part of a webshop. A fulfillment partner specializes in logistics, which minimizes errors in order picking, packaging, and shipping. Use the cost price calculator to find your all-in fulfillment price!
