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Three Ways Small Businesses Can Save Money on Shipping

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As the owner of a small business, much of your time is probably spent on core business activities, such as focusing on bringing in new clients, offering fantastic customer service and increasing sales. This can result in the shipping process taking a backseat, something that can have a real impact on your profit margins.

Effectively managing shipping costs is essential for any business and finding the right balance is key. This is because charging customers too much could result in a drop in sales, while not charging enough could seriously impact your bottom line.

Generally, it's a lack of research, planning and strategy that can result in businesses paying over the odds for shipping. As such, here are three ways any small business can update their shipping processes and save money while also boosting available cash flow.

Sizing is Important

The majority of third party shipping companies charge based on parcel dimensions as well as weight. This means that packaging parcels in larger boxes could significantly increase the cost of shopping. However, going too small could result in items arriving squashed or damaged, which could seriously hurt your company's reputation and cost more to fix in the long run.

When considering size, make sure to choose packaging that is big enough to incorporate a protective layer, such as bubble wrap, but not so big that it unnecessarily increases shipping costs.

Find Cheap Shipping Supplies

When approaching shipping, as a business owner, you may only think about the cost of sending parcels via courier, but the overall cost also includes packaging and supplies. The cost of packaging can soon add up, resulting in expensive shipping process. To reduce the cost of shipping supplies, shop around and if you're able to, buy in bulk, as this could drastically reduce the price.

Fast and Cheap Methods

When choosing a shipping service, it's important to find the right balance between speed and price. For example, if you're shipping documents containing sensitive information, or have a parcel that must be sent by expedited delivery, then it's worth paying extra special shipping services by a courier like TNT. However, for standard shipments, consider longer 3-4 day methods that offer a lower rate.

Shipping is a vital consideration for many small businesses, but with priority given to core activities, it can sometimes be forgotten, which can eat away at profits. Try these three techniques to reduce overall shipping costs for your small business.

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