Picture this: You've finally made the leap into e-commerce. You're sitting at your desk, smugly watching the sales roll in, when suddenly, BAM! —shipping costs hit you like a surprise piñata filled with bricks. Yeah, not quite what you expected, huh? Well, you're not alone. So many sellers dive headfirst into e-commerce without really knowing that shipping costs can become the bad guy of their business story. But don't you worry, we are here to save the day as your e-commerce superhero, no cape needed, armed with a few actionable pieces of advice and a couple of laughs.
Buckle up, let's wrangle this beast called shipping costs!
Product Size: The Goldilocks Principle
Look, nobody wants to pay for shipping a box that could house a small village when you're just mailing a dainty, wee necklace. This is where the Goldilocks principle comes in—you want the box that's "just right."
Why It Costs You: Shipping carriers charge based on size, and oversized packaging can drive up your cost faster than you can say the words "dimensional weight."
How to Avoid:
Get cozy with your tape measure. Know your product dimensions and choose packaging in line with them. Snug, not suffocating, and not cavernous either.
Offer smaller sizes for products wherever possible. Does your product really need to be 3 feet tall, or is that just for show? Shrink it down where you can.
Product Weight: The Heavy Hitter
Your customers love your hand-forged iron sculptures, but your shipping bill sure doesn't. Product weight is a big factor, and the heavier the product, the more it costs to ship.
Why It Costs You: Heavy packages take more fuel and generally more resources to move—hence shipping companies will make you pay for that extra effort.
Tips to Mitigate:
You may want to consider diversifying your product line to also include lighter options that offset the shipping costs.
You can use lightweight packaging materials such as bubble wrap or air pillows. Your merchandise will be well-protected, but you won't need to pay for shipping on extra weights. A good 3PL warehouse can help with this.
Work with your 3PL warehouse. Many of them have relationships with a variety of various carriers where they can extend to you a better price than you could get on your own.
Shipping Zones: It's All About Location, Location, Location
Shipping from LA to NYC? Your package is basically taking a cross-country road trip, and it's going to cost you. The farther your product has to travel, the more you're going to pay.
Why It Costs You: Shipping companies divide the country into zones. The higher the zone number, the more expensive it will be.
Avoidance Tips:
Use a strategic 3PL warehouse location to reduce shipping distances. The closer your warehouse is to your customers, the less you'll pay in shipping.
Offer region-specific shipping promotions. If someone orders from a zone that's cheaper for you to ship to, then pass those savings onto them.
Consider multi-warehouse fulfillment; this would reduce shipping zones for large geographic areas.
Packaging Materials: Don't Overdo It and Ask Your 3PL Warehouse
Do you really need five layers of bubble wrap, three cardboard inserts, and a whole roll of tape? Unless you are shipping a Fabergé egg, probably not. Overpacking isn't just annoying for your customers; it's bad news for your bottom line, too.
Why It Costs You: Additional materials add not only weight (see above), but also require more to buy and control, raising your operations costs.
Tips to reduce:
Invest in packaging that fits: it saves space and reduces the need for excessive materials.
Opt for eco-friendly packaging alternatives. Many are lighter, but not all, and some cost-effective—and your customer will appreciate going greener.
Streamline your packaging process. A little efficiency goes a lot further in cutting costs.
Carrier Choice: Shop Around Like a Bargain Hunter.
Paying with one carrier may evoke feelings of loyalty, but when it comes to ecommerce shipping, loyalty doesn't always pay off—literally. Different carriers shine at different things, and the cost of shipping can vary wildly depending on what service and where you're sending it.
Why It Costs You: The inability to compare the rates of carriers can leave you spending more than what is needed, especially if your needs are not in good alignment with the strengths of a carrier.
Countermeasures to Minimize:
Leverage your 3PL warehouse's shipping software providing real-time comparisons of carrier rates. This will enable you to select the cheapest option every time.
And don't forget to include the delivery times. Sometimes slow—and less expensive—delivery is perfectly acceptable, and your customers won't mind the wait.
Shipping costs can be a real pain in the wallet if you are not watching the details. But from the selection of just the right size of packaging, expertly optimizing your carrier selection, and partnering with a great 3PL warehouse like Shipping Bros — there are plenty of ways out there to keep those expenses in check.
So, let's just cut to the chase: Who doesn't want to save a few bucks on shipping? So, the next time you feel overwhelmed by shipping rates, take a deep breath, remember these tips in your head, and act like a boss in regard to your e-commerce shipping strategy.
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