A major challenge for new entrepreneurs is the unexpected costs of shipping. This not only includes costs associated with shipping products to customers but also the costs of having supplies shipped to you. There are a number of ways to decrease your shipping costs and I have touched on three important ones below.
PAY ATTENTION TO EACH PACKAGE:
Be sure to adjust your carton sizes to avoid dimensional weight (DIM) and oversize surcharges. FedEx, UPS and USPS have weight minimums and oversize penalties ( DIM charges). Take a sample of the types of packages you are currently shipping. Many fulfillment providers have access to equipment that quickly measures the dimensions of each package. Many fulfillment warehouses have software that optimizes the carton size for each shipment. In order to not be charged for over sized packages is to get the DIM number as close to the pounds per cubic foot (PCF) as possible in order to satisfy the carrier requirements and minimize rate increases.
REDUCE YOUR WEIGHT:
Each type of material you use to cushion the goods inside your package adds weight. By using less it may allow you to use a smaller package giving you a significant cost savings. Even using the recyclable and cheaper Kraft paper can add several ounces to a package. But how do you do that and still maintain your product arrives unharmed? An option that Port City Fulfillment uses quit often is air pillows. These offer wonderful cushioning while being virtually weightless.
USE SMALLER SHIPPING MATERIALS:
While researching fulfillment centers, be sure to question that types of packaging they offer. You'd be surprised that many shippers are limited in the number of box sizes they carry. Having many different choices in boxes and shipping materials allows brands to find the best options to satisfy all their shipping needs.
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