Five Tips to Reduce Your Shipping Costs

When you’re running a small business, every penny counts. Let’s say you offer free shipping on your products. Now, $10 for shipping may not seem like much, but if you sold 10 or 20 items a day (which would otherwise be a great thing), that’s $100 to $200 out of pocket in just one day! Yikes! What’s a small business owner to do? Try these five tips to lower your shipping costs.

1. Buy shipping insurance from third party companies. While shipping carriers charge around 80 cents, third-party companies like Performance Plus Global Logistics charge almost half that. These savings really add up if you’re in the business of shipping high-end items.
2. Bill customers correctly. Even if you don’t offer free shipping, you could unknowingly be taking on some of the shipping costs that should be directed towards your customers. Some of these fees are Saturday delivery fees, fuel surcharge fees, and extended service area fees. Factor in these fees when determining how much to charge customers for shipping.
3. Use regional carriers. Regional carriers can offer the same services as national providers a lower price, and they offer equal service options as well. At Performance Plus, we offer some of the best services in the business at a better rate!
4. Utilize Correct Packaging. Reducing damage and eliminating delays has to be your top priority, and the right packaging can do just that. It will ensure your product is delivered in perfect condition to your customer.
5. Utilize the Technology. Your freight management company offers you lots of options at your fingertips to help further reduce your transit time, shipping costs, and enhance your reporting options. Use it!