7 Helpful Tips to Cut Mailing and Shipping Costs

The opening and running of a business are faced with many challenges, among them mailing and shipping costs. The shipping cost is usually a significant challenge as it includes costs associated with having supplies shipped to you and shipping products to your customers. Mailing and shipping costs can account for as much as 25% of your overall costs. This is why wise entrepreneurs are always seeking tips to cut down. In this article, we will discuss helpful tips to minimize mailing and shipping costs. 

1. Negotiate with multiple carriers 

Every company in the shipping business has its pricing schedule. The schedule is based on volume. This, therefore, means that the more you ship, the lower rates you get. Unfortunately, most small businesses, especially, don’t realize that they have negotiation power in addition to the pricing schedules. Thus, if you realize that you are shipping large packages, consider persuading your carrier to offer lower rates. The company will be willing to strike a good deal. 

2. Persuade suppliers to use your shipping account number

While in business, the high chances are that you may be receiving inventories from different parts of the world. Most entrepreneurs usually have suppliers ship products to them, and also to their customers. In such an instance, it’s recommended that you persuade domestic suppliers to send products to your shipping account number. By doing so, you will be increasing your business’s shipping volume, and as a result, you’ll get cheaper rates. You will also prevent your suppliers from padding their shipping costs. 

3. Go for a regional carrier

It’s advisable to consider regional carriers as well because they are known to provide services similar to international ones at a reduced cost. By doing so, you will be saving some cash. However, when going for this option, you must have in mind that regional carriers have limited delivery networks. Besides, by spreading your business among many carriers, you might reduce your bargaining power. 

However, if you decide to go with an international shipping company, you should choose one operating on specific routes or destinations. For example, if you need to send a package from the USA, for example,  to Poland, you should go with a shipper specializing in shipping to Poland. This way you’ll get more quality services and more affordable costs.


4. Consider association discounts

When looking for a mailing service provider, it will help much if you consider a company known to provide simple, easy, and fast services. Apart from efficiency, it will be wise to consider if your professional association has a partnership with a carrier that offers member discounts to help save money. Depending on the size of the association, you could be eligible for discounted rates going up to 50% on certain services.

5. Go for packaging offered by your carrier

Using your packaging is one way to create brand awareness. However, by doing so, you may face additional ‘dimensional fees’ as your boxes may exceed the size regulations set by UPS and FedEx. Therefore, it’s a wise move if you consider going for packaging provided by your carrier. Going for this option means that you won’t have to incur dimensional fees, thus reducing the shipping cost by around 15%.  

6. Online 

In the recent past, the internet has taken control over almost every sector, the mailing and shipping sector included. If you aren’t using online shipping, then be sure that you are missing much. Going for this option helps you save a lot. According to statistics, you can save up to 16% on priority mail orders, and up to 60% on express mail. Depending on the volume, you can pocket huge sums of money in the long run. The fantastic thing about using online shipping is that you also get free pick-up service and priority mail delivery confirmation, which is good for business. 

7. Invest in a prepaid shipping

Another effective way to cut mailing and shipping costs is by considering prepaid shipping. Going for this option can help you get discount offers of up to 20%. Prepaid shipping means that you buy a quantity of shipping labels upfront and affix them to packages instead of paying for each box you send out. This method works best if you know that you will be sending out the same weight packages repeatedly. The fantastic thing about this tip is that you get the chance to determine the shipping cost in advance as well. 

Mailing and shipping costs can be a pain in the neck, especially for new entrepreneurs. If you’re not careful, you can end up spending a considerable sum of money on your overall costs. If you are looking for ideas about how to minimize these costs, this article is for you. It explains seven proven ways to cut on both mailing and shipping costs. Just remember to apply them!


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