How Can You Reduce Shipping Costs in the Holidays?

Customer demands urge businesses to consider how they can reduce shipping and delivery costs. There are multiple ways that businesses can reduce rates, some of which include reexamining customer shipping and delivery options, carrier services, packaging, and business guidelines. Here are 7 tips designed to help your business meet demands and reduce customer costs.

1. Map Potential Destinations

Map out potential destinations where products could be purchased as well as were frequently purchased and where they are sent. Determine which carriers can go to those locations and at what speed and price they offer their services.

2. Shipping Options

Once you have mapped out carriers and have several options to offer the customer, let them choose between a faster option and a slower delivery service. Then they will pay accordingly.

3. Consider Weight And Dimensions

Another consideration is the product weight and dimensions. You should already have this information unless you do not have it on hand or you are not the manufacturer. By having this information handy, you can use it to your advantage. It can be used to negotiate with your carrier and help avoid surcharges.

4. Consider the Performance Of the Carrier

You will want to ponder these few components:

• Successful overall delivery
• First time delivery success rate
• Late delivery
• Refused delivery
• Damages

Once you have analyzed the delivery performance of your carrier, you will want to negotiate accordingly based on the facts.

5. Reassess

After you have analyzed the portfolios of different carrier services, and even after choosing one that seems to fit, you want to assess whether there could be other options that will save money by using a different carrier service.

6. Consider Implementing Multi-Carrier

Maybe a variety of carriers meet your needs and standards. Another way to reduce shipping and delivery costs is by using a multiple carrier strategy. You can use different carriers based on:

• Time delivery devices
• Next day vs. Longer deliveries
• Residential vs. Commercial deliveries
• Region
• Mail vs. Small parcels vs. Large deliveries

7. Packaging

Thinking of ways to design, define, and reduce unnecessary bulk and weight could mean customized packaging. Discuss your options for successful dimensional weight pricing with your fulfillment provider.

Final Thoughts

If parcels require a signature for certain products, try experimenting with a signature service. Another thought is to look at consolidating parcels if there are multiple products going to the same address. By following these 8 simple steps, you could be on your way to reducing shipping and delivery costs. Determine with your fulfillment provider which options best suit your customers and the company’s needs today!