Shipping costs have been steadily increasing due to commodity prices rising, most notably, fuel.
You as an ecommerce entrepreneur understand the importance of regularly keeping your shipping expenses in check. The idea is to keep shipping costs affordable without sacrificing service quality so your customers consistently receive your products quickly and reliably.
So how can you keep your ecommerce shipping rates under control in 2022 and beyond? We offer five effective ways below – feel free to share additional ones with us on TikTok, Instagram, or Facebook.
1. Partner With the Right Shipping Company
This is arguably the most important factor when it comes to keeping shipping costs low. Do your research and get some rate estimates to see which shipping provider is ideal for your business needs. Remember that pricing isn’t everything and all providers aren’t created equal. Take a look at Google Ratings for actual client feedback, check out insurance and tracking costs, estimated delivery timelines, and other factors that matter the most to you and your customers.
With Chit Chats, you can easily import orders from Etsy and elsewhere, buy cost-effective shipping labels and print multiple ones off at a time, and ship like a pro every time through our easy-to-use platform. Save up to 80% on international shipping, up to 71% to the U.S., and up to 48% across Canada. If you don’t already have a Chit Chats account, then it’s time to take your shipping experience to the next level, sign up now.
2. Use Just the Right Size of Packaging and Reduce Package Weight
Packaging is a key consideration for minimizing your shipping costs. Determine which package sizes you need to best accommodate your products. Ideally, not much room should be left once your items and packing materials are inside. The less truck and airplane room your packages consume, the less it will cost your business.
A package’s material is also important. If possible, switching to lightweight poly mailers instead of heavy cardboard, for example, can help reduce size and weight, and that translates into more money in your bank account.
3. Keep an Eye on Rate Increases
Every shipping company needs to increase its rates to account for rising fuel prices and other variable expenses that go up. Carriers typically implement new pricing every January, and throughout the year as needed. It’s important to know when your shipping partner will increase theirs next so you can adjust your product pricing or shipping costs to keep your margins stable.
You can’t inevitably control shipping rates as they go up over time across the industry, but you can make adjustments on the fly so your profits aren’t steadily declining. You may want to give your customers an empathic heads up before you increase your pricing to offset increasing shipping costs. This can also help to build greater customer loyalty and trust.
On the flip side, you can maintain current pricing and take a hit to profitability, or quietly raise pricing and see if there’s a negative impact on your sales numbers. It’s all trial and error, and each business and market is unique.
4. Save on Shipping Supplies
Various packaging, tape, bubble cushioning wrap, labels, and other necessary supplies that are used regularly can add up from a cost perspective.
You may or may not want to buy your supplies from your shipping provider depending on the costs, logistics of receiving them, etc. Chit Chats provides good pricing on various supplies that your ecommerce store needs to successfully ship and do business.
Look for a supplies vendor that you can trust and consistently has what you need, with solid product quality to fit your branding, and offers fair pricing. Also, stock up when supplies go on sale – it never hurts to have a surplus to buy you more time before your next order.
5. Ship Using Ground/Economy Options
If your customers or a segment of them don’t expect or need ultra-fast shipping, then consider more affordable options, even if it may take extra time for packages to arrive on doorsteps.
You likely want to ship products to your customers as quickly as possible, particularly before certain holidays including Christmas, but otherwise, you may be able to save thousands of dollars per year by choosing ground and economy shipping options.
Ship Your Way to Success With Chit Chats
These are just a few ways for how you can ship more cost-effectively and accomplish it without altering your workflow too drastically. We love saving our hardworking clients money on shipping, and always consider their utmost needs with every decision we make.
If you aren’t already shipping with Chit Chats, then sign up for an account and put our passionate team to work for your business!