Shipping cost is an
important expense every small and medium-size business looks to cut down to
increase their customer acquisition.
With the increase in the number of e-retailers, many small businesses
have started to face issues related to shipping expenses mainly because big
companies like Amazon have started to offer free shipping to their customers.
So to compete with
them, Having the right shipping strategy will help you to cut down all the
extra charges paid by most of the eCommerce businesses. Many of you may not
know that there are more than 75 extra charges involved in shipping a product.
In the initial stage,
these shipping costs may not trouble you but with the increase in the number of
orders, you may start feeling the pain of extra charges. While shipping bulk
products, a small difference in the dimensional weight (DIM) can make you pay a huge amount which will
directly reflect your revenue.
If you want to avoid
shipping mistakes done by most of the eCommerce business then check our blog on
8 Common
Ecommerce Shipping Mistakes To Avoid In 2020
In this article, we
have discussed some important tips that will help you to cut down all the extra
shipping costs that your eCommerce business might be paying. Using these tips
you can provide cheaper shipping rates to your customers and it will also help
you to save all additional charges that you are spending on the packaging and
shipping of a product.
Here are the tips that you can use to trip you extra Product
shipping costs:
1. Shorten the product shipping distance
In product shipment,
your product weight and customer location play an essential role in determining
the cost of the shipment. Many eCommerce businesses are paying an extra amount
for shipping the products to long distances. You can save your extra shipment
spending by optimizing and reducing the distance between you and your customer’s
location.
Before shipping the
product, you can determine the shipping zone of your customer. You can use your
customer’s zip code to discover the shipping zone of the product. In the United
States shipping zones are divided into 8 parts i.e. zone1 to zone 8 for
domestic shipping. Your product shipment zone is calculated from where the
product is being shipped. The location
from where you are shipping the product is considered as zone 1. And depending
on that you identify your customer shipping zone.
If you want to cut
down your extra shipping cost then try to target a single zone, nearby zone or
a minimum number of zones instead by covering each zone. With the increase in
the product shipment distance, your shipping amount will also increase and it will
also slow the process of product delivery. If you stop shipping your product
directly to higher zones you can automatically save a lot of money.
For shipping your
product to farther aways zones, You can partner with any big company that has a
fulfillment center near to your shipping zone. There are fulfillment centers
like ShipMonk and more that can help you in reducing your shipment cost. You
can also negotiate with them as they have higher shipping volumes.
2. Negotiate with various shipping carriers
Today, shipping costs
play an important role in keeping an eCommerce business competitive in the
markets. If you successfully cut down the extra shipping cost then you can
surely outperform your competitor in terms of revenue.
Most of the shipping
carriers are offering shipment rates depending on the volume of packages which
means higher the number of packages, lower will be the shipping cost. That’s
why many small businesses hesitate to negotiate with the shipping company. One
thing they don’t realize is that they can also negotiate with the shipping
companies, even if they have fewer orders.
To trim your shipment
charges you can negotiate with multiple shipping companies to know which
company is offering cheaper shipping rates.
whenever the shipment company realizes that some other carrier is vying
for your business then they will surely negotiate with you by providing the
reasonable charges. It all depends on you how you are negotiating with
different shipment carriers. Read more
on
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