Shipping costs can be a real pain for small businesses and solo entrepreneurs. Every penny saved on shipping can boost your bottom line and keep your customers happy with reasonable rates. Here, you’ll find handy tips, comparisons between carriers, and savvy strategies to cut down on shipping costs without compromising on the quality of your service.
What is the cheapest way to send a package for small businesses? The cheapest way to send packages often involves using shipping aggregators, which offer discounted rates typically reserved for high-volume shippers.To further reduce costs, use the smallest possible packaging, avoid dimensional weight fees, and consider reusing packing materials.
How to choose the right carrier
For small shop owners, the big carriers might not be your best bet due to less-than-ideal rates caused by lower shipping volumes. In this case, shipping aggregators will be your best friends in the world of logistics as they offer fairly lower rates and an overall simplified shipping processes.
What are shipping aggregators? Shipping aggregators are platforms that consolidate shipments from multiple carriers, offering discounted shipping rates typically reserved for high-volume shippers.
Benefits of shipping aggregators:
- Lower rates: Access to reduced rates as if you were a high-volume shipper.
- Rate comparison: Easily compare shipping costs across various carriers.
- Streamlined process: Integrated solutions for label printing and tracking, simplifying logistics.
Our recommended shipping aggregators
For US-Based sellers:
- PirateShip: Offers competitive USPS rates with no monthly fees, ideal for smaller, frequent shipments.
https://www.pirateship.com/
- ShipStation: Provides comprehensive integration with multiple carriers and e-commerce platforms, though it comes with a small monthly fee.
https://www.shipstation.com/
For Canada-Based Sellers:
- Stallion Express and ChitChats: Both require package drop-off at specific locations but offer attractive rates.
- ClickShip: Features broader carrier options with both drop-off and pick-up services.
https://www.clickship.com/
For Both US and Canada:
- ShipStation: An option for handling cross-border shipments.
Drop-off vs. Pickup Services
Most aggregators require you to drop off packages at their designated locations to secure the best rates. While pickup services offer added convenience, they typically come at an additional cost.
When to scale up and consider direct carrier relationships
If your shipping volume reaches several hundred orders a month, it might be time to negotiate directly with carriers to further reduce costs and enhance service terms.
More tips to save your money (optimize your packaging)
Keep it small
Select the smallest possible packaging that fits your product snugly, using light packing materials like bubble wrap or padded mailers instead of heavier options.
Avoid dimensional weight fees
These fees are charged for large, light packages. Compact packaging can help avoid extra charges for the space your package occupies during transport.
READ MORE HERE: Actual Weight Vs. Dimensional Weight
You can reuse your packaging materials
Reusing boxes and packing materials not only cuts costs but also supports eco-friendly practices by reducing waste.
Compare rates online
Platforms like PirateShip, ShipStation, and Shippo enable you to find the most economical carrier for your specific needs, often offering special discounted rates.
Carrier discounts
Register for business accounts with carriers to access volume-based discounts, such as USPS Commercial Pricing for Priority Mail.
Flat-rate and regional boxes
These options can be particularly cost-effective for heavier items (flat-rate) or shipments over shorter distances (regional rates).
Read more about shipping options and tips!
Alternative shipping methods
Drop-off at carrier locations
Avoid the fees associated with pick-up services by dropping your packages off directly at carrier locations.
Shipping in bulk
Consolidate your shipments to reduce costs, and offer customers combined shipping options for multiple items.
Consolidators
Consider using shipping consolidators like DHL eCommerce or RR Donnelley, which offer discounts by bundling multiple smaller shipments into one.
3 good practices for cheap and reliable shipping
Accurate measurement. Always, always measure and weigh your package precisely to avoid unexpected fees.Online label printing. Purchase and print your shipping labels online to avail of carrier discounts.Package tracking. Ensure reliable delivery with budget-friendly services by using tracking options.Elevate your packaging!
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