7 Practical Ways E-commerce Businesses Can Save Money on Shipping

0

Rising shipping costs plague businesses looking for a balance between profit and customer satisfaction. The Wall Street Journal reported shipping and logistics costs will continue to rise well into 2024. On average, carriers have raised their rates by 1%, E-commerce businesses must now find a proper balance between customer satisfaction and shipping costs. If you are looking for practical ways to save money on shipping costs for your e-commerce business, incorporate some of the ideas below to leverage shipping costs and options.

 

Save Money on Shipping: Practical Solutions

 

E-commerce businesses must ship customer orders quickly. It is part of a good business model and ensures customer satisfaction. When shipping costs rise, e-commerce businesses must pass the increases on to customers and risk losing them to other providers or adapting their shipping strategies. Adapting shipping strategies can provide a balance between profit and customer satisfaction. We offer the tips below to e-commerce business owners searching for shipping solutions that benefit their bottom line and customer base.

  1. Negotiate Shipping Rates: Negotiating shipping rates allows a business to control costs and optimize its shipping expenses. Establish relationships with carriers to unlock better pricing and savings. Request quotes from several carriers and compare rates to secure the best deals on shipping costs. Third-party shipping services also benefit your e-commerce business and the customers it serves. Third-party providers can negotiate better rates on your behalf. E-commerce businesses that negotiate shipping rates find cost-effective solutions that align with their budget and shipping needs. 
  2. Initiate Multi-Carrier Shipping: Multi-carrier shipping is a game-changer for e-commerce businesses looking to reduce costs and improve customer satisfaction. With multiple carriers, customers can choose the shipping speed they most favor, get items faster, and enjoy overall satisfaction with your brand. Check out https://www.firstmile.com/, a world-renowned carrier known for optimized delivery services and cost-effective rates. Research and compare rates with this carrier and several others.
  3. Package optimization: Proper packaging can significantly reduce shipping costs. While safeguarding your products during transit is important, packaging methods also affect shipping costs. Choose packaging materials that offer a balance between durability and lightweight, which ultimately reduce shipping costs. Furthermore, optimizing packing benefits the earth. It’s simple to do your part to make a difference in this world.
  4. Get Automated: Automation is essential to success for e-commerce businesses. Automation streamlines operations and reduces shipping costs. Investing in automation tools that integrate with your platform benefits the provider process, and package tracking, and eliminates errors often associated with manual entry. Optimizing efficiency and reducing manual tasks helps businesses save money by reducing labor needs, increasing customer satisfaction, and consolidating information.
  5. Consider Offering Free Shipping: Customers see the word free and their curious nature strikes. Your products get more attention and purchases when customers feel like they are getting a deal, which free shipping provides them. Consider setting minimum thresholds for free shipping, further encouraging them to shop more and spend more money. Find the most appropriate threshold for free shipping by analyzing order data.  
  6. Utilize Third-Party Fulfilment: Outsourcing to third-party providers can further reduce shipping costs. Third-party providers have negotiated rates with carriers that allow lower-priced bulk shipments. Third-party providers also provide fulfillment services that can help store items and reduce inventory and fees associated with their storage.
  7. Regularly Monitor and Optimize Shipping Strategies: Review your carrier information regularly. Evaluating shipping expenses against carrier performance helps identify areas in need of improvement. Consider the different shipping zones, delivery times, and carrier performance to keep your shipping strategy efficient and maximize your savings and profits.

Saving money on e-commerce shipping costs while providing customers with the options they want is practical for businesses that incorporate the information above into their business plans. Expect savings ranging from a few hundred to a few thousand dollars, depending on shipping volume and other factors.

 

Why Focusing on Shipping is Important to Every E-Commerce Business

 

Shipping plays a role in the success of an e-commerce business, affecting the customer experience, a customer’s overall satisfaction with a brand, and their future loyalty. Customers want their orders fast and expect companies to deliver (literally!)

 

A few of the biggest reasons why shipping is of utmost importance to e-commerce businesses include:

 

  • Customer Expectations: e-commerce businesses are a dime a dozen these days. Customers will not hesitate to go elsewhere for future purchases if they are dissatisfied, especially if that unhappiness stems from longer-than-average shipping times or costs. Unhappy customers do not repeat business and often tell others to avoid the company. Finding affordable shipping options ensures customers receive their orders efficiently, improving the odds they’ll return for future purchases.
  • Industry Advantage: Keep up with competitors by offering multiple shipping options and shipping deals like free shipping with minimum purchases. If other businesses offer multiple shipping options, so should your company. Multi-shipping carriers give a broader range of customers choices and more reasons to shop with your company. 
  • Brand Reputation: Protecting brand reputation is vital for long-term growth and success. Nothing ruins a brand’s reputation faster than slow sipping. If you want to maintain a brand reputation and foster brand growth, ensure customers get their merchandise as quickly as possible after an order and always on or before the promised delivery date. 
  • Customer Satisfaction It cannot be stressed enough: happy customers receive their orders quickly after placing their orders. An e-commerce company that finds ways to save money while offering fast shipping to keep satisfied customers.

 

The Bottom Line

 

The information above highlights some of the biggest reasons e-commerce businesses should look for ways to save money on shipping costs while giving customers the options they want. It takes very little time to do great things for a business, especially in terms of shipping. It’s vital to the success and reputation of your brand. Use the seven tips to find carriers that meet your needs and focus on fast, efficient delivery options to keep customers happy and help your business grow.