The eCommerce industry has become highly competitive, and online shoppers anticipate something better from e-stores. They desire faster delivery and cost-effective shipping options. Free shipping options can increase the conversion rate on an eCommerce platform. But, eCommerce business owners can find it hard to maintain a profit margin while providing free shipping offers to customers.
That is why it is important to know the most affordable way of shipping a package to customers from different regions in the US. With cheaper shipping solutions, eCommerce owners will be able to win the competition and please customers. They will not need to compromise their profits to succeed.
Find the best tips for lowering your shipping rates-
Know where the products will be shipped
While shipping products to a particular region, it is better to choose the regional carrier. Some regional carriers charge low shipping rates compared to that of national-level shipping carriers.
For instance, a shipping carrier covering the West Coast offers faster delivery service to Arizona, California, Nevada, Washington, Oregon, Utah, Idaho, and Colorado.
Shippers constantly search for the right carrier to deliver packages cost-effectively and efficiently. As there are several carrier options with varying rates, it is not easy to make the best decision.
Reduce the shipping distance
Several eCommerce businesses pay higher charges while they ship products to destinations, which are far away. In the USA, there are shipping zones ranging from Zone 1 to 8. These zones can make a difference in the distance covered.
While the shipping distance is higher, it will result in a costlier and slower shipping process. The best option for eCommerce business owners is to partner with companies, which have several fulfillment centers.
Pack smaller and lighter packages
No doubt, heavier and larger packages can increase the shipping costs.
Private carriers like FedEx and UPS use dimensional weight for the calculation of shipping rates. Thus, it may be complicated to make an estimate of the shipping cost. The best rule is to pack products in smaller dimensions. It also eliminates the need for using durable boxes for smaller packaging.
Furthermore, while packing an item in an oversized box, there is a risk of damage during shipment. The use of filler materials for oversized packaging also increases the cost.
To say shortly, the larger package can increase the shipping rates. Several options are available from couriers to optimize the shipping package size.
Flat Rate Packages (USPS) is one of the options. Although it does not always ensure a cheaper rate, it keeps the shipping costs consistent.
Another viable option is to choose a cubic pricing system of USPS. It reduces shipping rates while delivering small and heavy products under 20lbs.
Look for more affordable shipping carrier charges
Based on the chosen shipping carrier, eCommerce owners may need to pay a charge for Saturday delivery, residential delivery, delivery signatures, and fuel surcharges. It is important to identify the shipping carrier’s charges and learn the way of reducing shipping costs.
Get shipping insurance from third-party companies
Shipping insurance from multiple carriers can cost higher. For instance, for $100 of insurance, the carrier may charge $0.85. On the contrary, third-party insurance agencies will charge almost $0.55 cents. It will reduce the overhead costs, and eCommerce owners will save more on shipping items.
Try to choose prepaid shipping options
Prepaid shipping is effective in reducing the shipping cost by 20%. It is a way of buying some shipping labels upfront. There is no need to attach them to a carton. Thus, prepaid shipping will save both time and costs.
But, this option is applicable for those who regularly ship products of consistent dimensions and weights. Another advantage of this option is that it makes the shipping costs more accurate.
No need to use several carriers
In some cases, it is good to use multiple carriers. But, after identifying shipping needs, merchants can stick to a few carriers. The use of several carriers at a time lowers their bargaining potential, as they will ship a lower volume with every carrier.
Look for discounts on shipping rates
The shipping companies offer discounted price rates based on different factors like shipping volume. Although a business owner does not ship several orders a month, discount offers will be available.
The shipping service providers can offer discounts to loyal customers. But, obviously, by shipping more packages, there is a chance of enjoying better rates. Ecommerce business owners have to look for discounted shipping costs.
Choose bubble mailers as shipping materials
Shipping materials are one of the important factors making a difference in the cost. Bubble mailers can be the right option for delivering products, which weigh less than 13 oz.
Padding is not essential for products like books and clothing. In this case, bubble mailers are the most cost-effective choice for merchants shipping products to customers.
USPS is more affordable for lighter shipments
Shipping professionals and merchants think of choosing US Postal Service. However, the cheapest option for lightweight shipping products is USPS.
In the past years, USPS has lost its reputation for the delay and loss of products. But, these problems have been solved in recent years, and merchants can rely on USPS for shipment.
Negotiate the shipping cost
Some shipping carriers are ready to negotiate their shipping rates based on the annual shipment volume. It is important to identify a method offering the lowest shipping rate. By shipping more, the rate will be lower than the standard ones. Volume discounts increase the profit percentage of merchants.
Rely on software for automation
Several online merchants deal with different shipping carriers. But, without a proper software application, it is not easy to use multiple shipping carriers. That is why merchants can look for software solutions designed for shipping purposes. The special software will import orders from different selling platforms and calculate the shipping charges for different carriers.
These are some tips for shipping products at a lower rate. Online merchants selling products to customers from different regions will get value from these tips.