Maintaining a balance between efficiency in operations and keeping customers happy at the very same time may not be often easy. For small and medium businesses selling physical products, a high shipping cost implies more risks. They have to find ways to reduce shipping costs to keep customers happy and manage business better by relying on companies that can provide low cost logistics. With the rise in concerns over cart abandonment due to increased shipping costs, every business has to take adequate steps to retain customers. If your business aims at receiving more conversions, those who abandon the cart because of shipping costs may cost dearer.
Nine out of ten times, many businesses witness a pressing demand to offer free shipping to avoid losing customers. But it is not always possible. As a result, shipping expenses sometimes go exorbitant. Usually, businesses rely on strategic ways to reduce shipping costs to prevent such instances. Finding a solution all of a sudden is hard, though. To maintain efficiency in business operations by controlling cost, the shipping cost, in this case, is daunting. However, it is never unattainable. By careful planning and diligent preparations, businesses should begin with the key factors that directly relate to the calculation of shipping costs.
Before we point out ways to reduce shipping costs, let’s look at a few significant factors that add to the shipping cost. Nevertheless, if businesses pay enough attention to these, it is easy to reduce the unnecessary cost incurred on shipping.
Weight and Dimensions
The weight of the product is one of the primary determinants in arriving at its shipping cost. Weight implies the original weight of the product and packaging. Hence, bulkier and heavy packaging result in high shipping costs. Make sure that your packages are not bulky that they do not attract unnecessary shipping charges. Another determinant is the product dimension. Alongside the weight, the dimension of the products also increases the cost. In reality, shipping costs are calculated based on both the weight and the space the products take up. Therefore, if you seek ways to reduce shipping costs, make sure that you are careful about the packaging and dimensions of the goods.
Special Charges, Tariff and taxes
Depending on the nature of goods transported, they require special handling and associated needs. The cost of special handling and related requirements are added to the shipping cost.
During international shipping, expenses on shipping tariff and taxes take a toll on shipping costs. Similarly, if a business wants to use tracking and other additional features, it further increases the shipping cost. But, offering savings on shipping costs for the above is may not be a feasible decision in almost all cases. If your customer demands real-time tracking, you need to provide it and hence cannot avoid the expenses in this regard.
We shall break down a few key points that help keep shipping costs to the minimum. Let’s check it out right here.
1. Shipping Calculator
If you want absolute transparency in rates while simultaneously ensuring low cost logistics services, consider using the services of a shipping company that offer you a shipping calculator for finding the costs of shipping to a particular area. Top of all, such logistics providers also helps in comparing carriers who offer different rates based on the distance between pick up and drop off point, weight and dimensions of the items. Since it is more reliable and transparent, the chances of getting burdened with unnecessary or additional costs are low. Therefore, if you are looking for ways to reduce shipping costs to the lowest, use services that offer a shipping calculator.
2. Shipping Aggregators
Logistics aggregators that partner with couriers support shipping at economical rates. It offers savings on shipping costs as well. Businesses have to sign up on the shipping aggregator platform to facilitate marketplace integration. Besides providing low cost logistics solutions, it even streamlines the entire shipping processes. Businesses can hand over the shipping functions to their shipping partners while monitoring the activities from one single dashboard. Many shipping aggregators offer cost savings plans for regular customers and partners. Also, it is possible to select courier priorities, track shipment of orders in real-time. It is not just one among the ways to reduce shipping costs, but also optimise the shipping functions too.
3. Pickup Points
Businesses provide the consumers with the freedom of choosing from among the pickup points instead of home B2C deliveries. It keeps shipping costs to the minimum. Wonder how? It would even become 100% economical if the business owns a physical brick and mortar store. For instance, it can make customers choose the already existing pickup point (the physical store) rather than creating pickup points. Even if businesses need to collect it from their warehouse, they can minimise the number of transits if they ship it in bulk to the pickup point. It could help you reduce your shipping cost, either to the minimum or at zero by offering customers free shipping. If you do not own a physical store, consider partnering with another store that acts as your pickup point.
Boorna Freight and Logistics
If you are looking for ways to reduce shipping costs to the lowest minimum, boorna.com is your perfect shipping aggregator partner. We have specialised services starting from express transportation, pallet distribution, eCommerce solutions, storage, FTL/LTL to space and lunar cargo delivery and many more. We provide shipping solutions for all business models to optimise deliveries by using advanced technologies that encompass artificial intelligence and complex algorithms to predict any contingencies. LIVE shipping rates, API integration, multi-layered quotations, AWB and GPS tracking, military-grade encryption, 24/7 customer support are our highlights.
Partner with Boorna Freight and Logistics to meet all your shipping needs at once. Discover the most effective ways to reduce shipping costs and find how we streamline your shipping function to make deliveries at the speed of now!