How to Reduce Shipping Costs for Small Businesses
Shipping costs can significantly impact the bottom line for small businesses. High shipping expenditures eat into profits and make free shipping promotions cost prohibitive. However, there are strategies you can use to reduce your shipping costs.
Conformer Packaging Solutions
Conformer offers eco-friendly paperboard packaging engineered to maximize United States Postal Service processing efficiency and qualify for the lowest published rates.
Our solutions transform lightweight consumer goods into USPS Flats rather than costlier Parcels. This patented packaging is custom-designed to meet each of your specifications. We manage the end-to-end development process including design, testing, USPS approval, and manufacturing.
Learn more at Conformer.com.
Use USPS Commercial Pricing
The USPS offers reduced commercial rates through approved payment providers leading to substantial savings over retail rates. To qualify, you must have at least $10,000 in annual shipping spend. There are a number of plugins within eCommerce platforms including Shopify and WooCommerce, as well as stand alone platforms from Indicia, Easy Ship, Shipware, Shippo, and others.
Right-Size Packaging
Many businesses use oversized boxes leading to higher dimensional weights and rates. Dimensional weight is calculated based on volume as well as actual weight. Carefully measure your products and choose the smallest packaging that can safely ship the contents.
Leverage USPS Flat Rates
Flats and Letters often have lower rates than Parcels within the USPS. Review if your items can ship as Flats within qualified packaging rather than boxes – boxes are automatically Parcels. We offer custom mailers to ship your small merchandise under ⅝”as Flats.
Choose Lightweight Materials
Heavy packaging adds unnecessary weight, increasing your costs. USPS Parcel Select Lightweight is a rate for packages under 13 ounces, and is a per ounce rate. For every ounce saved, the pricing is reduced by about $0.20 .
Increase Fulfillment Efficiency
Efficient fulfillment reduces labor costs for picking, packing and shipping your orders. Implement systems to streamline processing and automate packaging through technology integrations.
Negotiate with Carriers
Large shipping volumes provide leverage when negotiating rates with UPS, FedEx and USPS. Note that negotiating power increases once you reach certain volume thresholds with each carrier. Use postage software like Easy Ship, Shipware, and Shippo to compare rates amongst carriers and switch for the best pricing.
Consider USPS Regional Rate Boxes
For merchandise over 13 ounces, USPS Regional Rate boxes offer discounted zone 1-3 shipping leading to considerable savings on regional ground shipments. These boxes provide up to 17-27% savings over regular USPS Priority Mail rates for zones 1-3.
Bundle Orders
Consider offering free shipping on bundled orders over a threshold. Bundling your orders cuts packaging and leads to shipping efficiencies.
Provide Free Returns
Offering free returns can improve customer satisfaction and retention. Return shipping savings can help offset costs of free outbound shipping promotions. Ensure your returns policy limits abuse.
Use Shipping Software
Robust shipping software provides discounting, rate shopping and optimization tools to reduce your costs. Many platforms integrate with order systems to streamline fulfillment workflows.
Frequently Asked Questions
What are some items I can ship with Conformer packaging?
Our solutions work for your small rigid items like jewelry, razors, and toothbrush heads as well as flexible merchandise under 13 ounces like apparel, accessories, beauty items, supplements, and electronics.
How long does custom packaging development/delivery take?
The process typically takes 6-8 weeks from design to delivery including required USPS testing and approvals.
