Contributing Author: Cassandra Lynne
A recent study by Forrester estimates that online holiday shopping will increase 15 percent from 2012 to 2013. That’s over $78 billion spent on online shopping alone. For retailers and small businesses, that means increased profits, but it also means increased shipping costs.
On a positive note, you can reduce shipping costs by making a few changes to your shipping procedures. Consider these four easy suggestions to save time and money on shipping this holiday season:
1.) Buy Shipping Materials in Bulk
This might seem like a no-brainer, but if you don’t keep track of your shipping materials or your orders, you could end up buying individual shipping items more often than necessary. Keep track of your stock of shipping supplies and set a day once or twice a month to order bulk supplies.
And, during busy times like the holidays, order double the materials you normally would, such as heat wrap, bubble wrap, packing peanuts and mail boxes, so you’ll be prepared for the higher demand.
2.) The Best Shipping Method
Shipping providers such as UPS and FedEx usually choose the quickest or most convenient method for shipping packages, but that might not be the most efficient or affordable option for your business. If you’ve never communicated with your shipping provider to figure out your preferred shipping method for various package sizes, weights and delivery times, get in contact with them to determine a strategy.
For instance, shipping by air is much faster than ground, but it’s also much more expensive and unnecessary if the customer isn’t expecting next-day delivery.
3.) Invest in a Postage Meter
Weighing packages and calculating or guessing the shipping costs sets you up for error — namely, using more postage than necessary. A postage meter takes the guesswork out of postage requirements by weighing your packages, automatically calculating shipping costs and printing labels for shipments.
Postage meters can only be owned by the U.S. Postal Service and other authorized organizations, but they can be rented or leased, typically for a yearly fee.
4.) Smart International Shipping
International shipping comes with a whole new level of mailing fees to watch out for. Not only are shipping costs higher, but customs, compliance and delivery fees will need to be considered. In fact, around 30 percent of shipping fees can be attributed to just customs and taxes.
You can reduce these fees by, again, talking to your shipping provider about the most affordable methods of shipping internationally. The U.S. Small Business Administration (SBA) offers a free guide and template to educate small businesses on the process and costs of exporting goods.
Shipping costs can quickly eat away at your profits, especially if you’re not using the most efficient and cost-effective methods. Reevaluate your shipping procedures to save time and money this holiday season.
About the Contributing Author:
Awesome Posts by Cassandra Lynne on the Woman in Leadership Blog:
4 Tips to Avoid Branding Blunders for Your Small Business
Help New Employees Feel Like Experienced Team Members with 5 Easy Tips
Your Small Business Demands Supplies - How to Stock Up for Success
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