The cost of shipping can be overwhelming, especially when you’re shipping products every other day. Not to forget, the cost of shipping internationally can leave a big hole in your pocket. Shipping can be especially costly for e-commerce stores that receive several orders per day.
Shipping costs are an essential factor in running an online business today. This is because more often than not, the shipping cost will determine whether a customer checks out or empties the cart. People often leave the website before checking out because the shipping costs are too high or almost just as much as the product itself.
Therefore, it’s important to find ways to eliminate or reduce shipping costs because it can drive up your sales. If overnight shipping is what you are looking for, check out our post for small business overnight shipping options.
How to Cut Down Shipping Costs
If you’re looking for the cheapest way to ship a package, you may have to go through several courier services before figuring out which one suits your agenda. But before you try out a shipping service, let’s have a look at some solutions for cutting down shipping costs.
Size and Material
Pick out a package that fits your product. If the package is bigger than it should be, it will cost you more. It’s better to find a shipping box that is appropriate for your product. The material of your packaging is crucial to cutting down shipping costs. You can replace heavy cardboard boxes with the poly mailer. Try to go for lightweight options like air pillows, foam inserts, excelsior, etc.
Flat-rate shipping can be especially beneficial for domestic deliveries. When you use flat-rate shipping, you can easily predict the cost of shipping no matter what size the package is.
Local Delivery and Pickup
Local deliveries and pickup are a great way to build a connection with customers, especially if you have a small business. This will help increase sales, improve customer experience, and build your audience.
Cheapest Way to Ship a Package
The cost of shipping will often be determined by how fast you want the package to reach the destination. There’s no doubt that you and your customers would expect fast delivery, but sometimes it may not be economical. Different courier services offer different shipping packages depending on the delivery.
The cheapest alternative would be to opt for the basic delivery package. However, with a basic shipping package, it can take up to seven days for your parcel to deliver. Overnight deliveries, on the other hand, are extremely expensive.
For instance, USPS Priority Mail offers cheap rates for delivering within 2-3 days. However, USPS doesn’t offer guaranteed services so your package may get delivered later than expected. FedEx and UPS offer better rates with guaranteed shipping. In case you would like to ship overnight, UPS and FedEx are your best bet. This is because they guarantee delivery the next day or you will get your money back.
Size and Weight
The size of the package is a determining factor when it comes to the cost of shipping. The bigger the size of the package, the higher the cost. You can use the flat-rate shipping package offered by USPS. However, please remember that this may not be the cheapest way to ship a package, especially if you’re shipping a large box. But, it will keep the shipping rate from fluctuating too much.
A great way to reduce the shipping cost is to use cubic pricing. USPS offers special cubic pricing that is relatively less than standard shipping rates. This is especially helpful if you are sending small, but heavy items.
The cheapest option to ship a package under 1 pound is USPS's first-class package. It costs $6.25. On the other hand, UPS Ground costs $13.18 and FedEx Ground costs $12.78. If you’re shipping a package under 5 pounds, USPS priority mail is the cheapest way to do so. It costs $6.25. UPS Ground is $19.50 and FedEx Ground is $18.91.
For packages under 10 pounds, FedEx Ground and UPS Ground are fairly cheap. They cost $30.14 and $31.08 respectively. USPS Retail Ground, however, costs $38.95.
If you want to ship packages that are more than 50 pounds, UPS Ground and FedEx Ground are perfect. If you ship with UPS or FedEx, you can also avoid surcharges. Shipping with UPS Ground will cost you $118.69 and with FedEx Ground, it will be $115.12.
Shipixy is a great option if you are looking for cheap ways to ship packages both domestically and internationally. With Shipixy, you can get discounts of up to 70%. International shipping packages with Shipixy start from $40.80.
In a nutshell, shipping costs can sometimes put a halt to your operation. That’s why it’s crucial to figure out different factors like size, weight, and shipping materials beforehand. This can help you make sure that you go for the best deal possible.