Shipping can be a frustrating cost to cough up. Rates seem to be going up and customers are becoming less likely to pay the high fees. But either way, it’s an impossible cost to avoid. Wouldn’t you love to save on shipping?
We could go into even more depth – about how unfair peak season fees are, how priority pricing only affects small businesses with less capital…. but you get the idea. And you likely face your own problems with shipping and delivery you’d love to get rid of. Luckily for you, we actually have the answers.
Here are some of the best ways to save money on shipping, no matter the size of your volume.
How to Save on Shipping
Depending on your company size, products, and specific needs, how you can cut down on shipping costs will be different from everyone else. While some of these options might work for you, others might not, but by far the best option will be to pick a few and combine them.
Here are 7 of the best ways you can start saving on shipping today.
Tip #1: Diversify your carrier list
Diversifying your carrier list is also known as working with more than one carrier. Not only can spreading your delivery services across multiple carriers help you cut on costs, but it can also help you find the best service, possibly saving even more in the future. Plus, it will help you to mitigate risk in case one carrier can’t manage an increase in volume down the line.
There are a few ways to separate this. You might choose to separate your delivery providers based on location, parcel size, or other factors. If one carrier offers a better price for a particular area, switching the appropriate orders to them could end up saving you plenty of money.
To make this switch, you’ll want to do some calculations to see if multiple carriers makes sense. Calculate what you’d pay to handle all your deliveries by one major delivery provider, and then calculate what you’d pay if you split your deliveries by two or three providers. You should also note that most providers charge based on volume, and changing your volume might affect your price per parcel (note: most providers won’t actually change your price if you decrease your volume by a bit, since the price categories are wide).
Tip #2: Find better packaging solutions
Secondly, you might not realize it, but your packaging can have a big effect over how expensive your overall shipping fees are.
The wrong packaging can make your parcels much bigger and heavier. If you work with a carrier that charges based on weight or dimension, your packaging might be adding to your overall fees. If your items are able to fit into smaller boxes, making these switches can help you pay less for each delivery.
On the other hand, packaging itself is also expensive. If you’re paying high rates for protective materials to keep your goods safe or boxes to ship them in, it might be time to look for a better option. Keeping your packaging costs as low as possible can help you minimize costs so the fees associated with shipping are much less.
Tip #3: Find a pricing structure that works for you
Depending on your business model and your products, there might be a shipping and delivery provider made for you.
If you ship all small boxes, added costs for dimensions might not make a difference to what you pay for shipping. Hence, you might not mind if your shipping provider offers flat-rate fees or not, because you’re already shipping small products. If you ship larger boxes, however, you might be paying more to have them make it to your customers. You might also be paying more for parcels to make it to specific customers if your carrier charges based on distance.
Depending on the specifics of your business, a flat-rate delivery model might be a necessity to save on shipping costs. Some carriers charge one price, no matter what you ship nor how far the final destination is. If either of these two factors are increasing your overall costs, they can easily be cut down on by looking for a model that best fits you.
Tip #4: Consider different pick-up options
Many delivery couriers make it difficult for small businesses to achieve fair delivery standards. Based on their volume, small businesses are usually charged more, even for slow delivery time frames. Plus, most couriers require minimum parcel requirements in order for them to be picked-up. Hence, if you’re a small business owner, you might be paying for more than you actually deliver.
In order to save on shipping here, you’ll need to find a provider who offers no minimum pick-up amount or multiple pick-up options. This can help ensure you’re only paying for the parcels you deliver, instead of paying for minimum amounts when you can’t meet them. Avoiding minimum pick-up amounts can help you save a lot of money quickly.
Tip #5: Get discounted rates
Most of these tips have been for small businesses. But if you have high monthly volume, you might have some bargaining power. Larger businesses can often negotiate rates and find discounted prices because they’re offering more business.
If you have a high monthly delivery volume, try speaking to different providers to find the one who can price you the best rate!
Tip #6: Be aware of price changes
Did you know some couriers raise prices over the holiday season? Just when you were supposed to be making more, you have to pay more to complete orders.
If you’re not careful, your delivery provider might raise fees or add additional surcharges you weren’t aware of in the beginning. To avoid paying extra, find a provider without hidden fees who offers total transparency of their prices. This way, you’ll know exactly what you have to pay up front, and you won’t be surprised when your final bill is posted.
Tip #7: Use third-party insurance
Finally, working with a delivery provider who offers delivery or parcel insurance can massively help you save money. Most eCommerce stores in particular are unaware of these hidden necessary costs, but the right provider can take care of it for you.
Parcel insurance helps make sure your goods are safe during transit. It can be a hefty cost to manage on your own, which is why it can be a good feeling to avoid it.
Best Practices for Pricing Shipping for Your Online Store
You should now understand the best way to cut down your shipping costs and save money on deliveries. But how can you price your deliveries fairly, so you can make money without charging your customers amounts they won’t be willing to pay?
If you pay different amounts for each delivery, the best way to price your delivery fairly is by using a simple calculation. Start by counting how many orders you deliver a month. Then, add up your total delivery costs for the same month. Divide your total costs by the number of orders that were delivered. This number is what you pay for a delivery on average. Hence, this is a fair number to charge each customer to make sure you make back the money you spent by the end of the month.
On the other hand, there is a much easier way to do this. If every parcel you deliver is the same cost, you know exactly how much to charge each buyer! This makes it much easier to know your costs of shipping are covered.
When pricing your shipping and delivery, you might also want to consider the volume each customer is purchasing. For example, you might offer free shipping for orders over $100, offering an incentive for ordering more from your business. Then, you can charge a flat-rate to customers who buy less than this, making up for your shipping costs as a whole.
How Working with FlashBox Can Save You Money
When it comes to saving money on shipping, deciding where to start can be one of the hardest decisions. Working with FlashBox is one easy way to save on shipping without adding extra work to your plate.
Here are the top five ways FlashBox helps to save you money on shipping, without compromising on quality.
1. No minimum parcel requirements
Unlike most other shipping providers, we don’t only help companies with high shipping volume. Even if you want to deliver only one parcel a day, you can still do it without paying minimum fees.
Most delivery providers require a minimum number of parcels in order to send a driver to pick them up. Whether this is 5 or 10 parcels, you’ll have to pay for the minimum even if you don’t deliver that many. With FlashBox, small companies can still offer affordable same-day delivery by making use of FlashBox Hubs.
FlashBox Hubs are spread throughout our coverage areas and act as service points for our drivers to pick up parcels from any of our merchants. If you’re a small business, and minimum quantities or prices are getting in your way, FlashBox Hubs can help!
2. Bulk shipping discounts
FlashBox helps larger businesses as well. If you have a high monthly volume, you can find lower prices that beat any competitor on the market. By increasing your volume, you can pay less per parcel than businesses who have a lower volume.
3. Flat rate prices
Do extra fees have you down? Fuel surcharges, parcel insurance, or extra costs for far delivery destinations? FlashBox can solve all of these problems.
All of FlashBox prices include everything you’ll need to have a successful delivery. This includes
- Same-day or next-day delivery
- All parcel sizes, weights, and destinations
- Live tracking and real-time notifications
- Up to $100 of parcel insurance
- 2 free reattempts at delivery
- Proof of delivery and signatures
- Live customer support
All of this without needing to pay extra? You can meet customer expectations and keep deliveries affordable.
4. Parcel insurance
Parcel insurance is included in our flat-rate prices, but it might be more valuable than you think. If you’re an eCommerce seller, there are likely plenty of fees and insurances you need to pay in order to run your business. Parcel insurance can be a forgotten box to check, but with FlashBox, you no longer have to worry about it.
We care about your business and its deliveries. This is why we insure each parcel up to $100 in case something during the delivery process causes damage to your goods. If during a delivery your provider causes damage to a parcel, you’ll likely have to replace the items inside and repay for another delivery to be sent out.
But when you have parcel insurance, you’re covered in case someone else makes a mistake that would usually cost you.
5. Most affordable rates on the market
FlashBox, aside from offering flat-rates, offers the best prices available. We beat major shipping providers like Canada Post, FedEx and UPS no matter what your monthly shipping volume is.
When it comes to saving costs, what better way is there than finding the most affordable price? With prices as low as $6 per parcel, you can’t find same-day delivery at a lower price.
Summary
When it comes to selling, delivery can often be a surprisingly high cost. After working with the same provider for long periods of time, you might not realize what else is out there. Or if you’re a new seller, you might settle for high prices, worrying you might not find anything better.
To save on shipping, it’s always best to search the market until you can find your best fit. Although there are plenty of ways to shave down your expenses on your own, like changing packaging materials and being mindful of price increases, there’s no better way than to just find the right fit based on cost and features. The hardest part is taking the first step, but you’ll be thankful you did.
Interested in actually cutting down your shipping costs and not just dreaming about it? Speak to a FlashBox expert today to see how we’re shaking up the industry.
