How To Reduce Shipping Cost

brown carton package

As people are shopping from home, shipping is taking an essential cost for businesses. Retailers have to make sure the package arrived on time at the most reasonable price possible. However, this is not always the case. In this write-up, we’ll discuss the most effective ways to reduce your shipping cost. 

Work with a variety of suppliers

There’s no rule in dropshipping that says you have to give one supplier all of your business. Diversification is, in reality, a great way to find the best goods at the best prices. When it comes to shipping prices, the same is true.

Many goods are available from several suppliers. For example, you may sell an Amazon product available on AliExpress and SaleHoo. So, if the product is perfect but the shipping cost isn’t, don’t be afraid to search around for a better offer and a higher return on investment.

With the coronavirus wreaking havoc on factories and warehouses and governments constantly reviewing what constitutes “important business,” your suppliers’ operations could come to a halt at any moment. However, you can use one of your other services if one of your suppliers is out of service if you have an alternative solution.

Know what shipping options you have

Besides private shipping companies, you can always consider public services. 

The United States Postal Service (USPS), China Post, and the Royal Mail are only a few national carriers open to dropshipping. They also differ significantly in price, delivery time, and monitoring. China Post, for example, can take 20 to 50 days to deliver worldwide, while USPS may deliver in two to 15 days, but only within the United States.

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The crucial thing to remember is that these are subject to change. Yes, researching the cheapest carrier for each product for each destination can be daunting, but it’s the only way to reduce the shipping cost to fulfill each order.

ePacket delivery

Then there’s ePacket delivery, which is available for goods sourced from China and Hong Kong in more than 40 countries. ePacket delivery is cost-effective and provides an extra layer of security with built-in monitoring.

ePacket, like FOB shipping, isn’t always the most cost-effective option. It isn’t always the fastest, either. Shipments can take anything from two weeks to a month to arrive. It is, however, dependable and, in many cases, affordable.

Reduce the amount of packaging you use

Two surefire ways to increase the shipping costs? Dimensions and weight. The bigger and heavier your package is, the more you have to spend to get it to the destination. 

Minimal product packaging is the way to go. You’ll want your shipments to be as small as possible (while still protecting the items inside) and as light as possible. Now, if you’re shipping anything like books, you can not have many lightweight packaging choices. The packaging, on the other hand, is something you can manage.

Final note

All in all, costs are the backbone of your business. A high operating cost would result in lower revenue, which might put your business at risk in the long run. Therefore, always aware of optimizing your shipping to reduce the cost. 

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