A significant way to improve the visibility of your e-commerce brand is to reduce it’s shipping costs. Customers’ expectations also have changed drastically as a result of the growing e-commerce ecosystem. If you charge lower shipping costs, your customers will be more likely to complete a purchase with a satisfactory experience. In order to save as much as 50% on “business as usual” freight charges, small businesses need an intelligent approach.
If you want to know more about reducing your dropshipping business shipping cost, read the full article.
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6 Tips to Reduce Shipping Costs for Dropshipping Businesses
You can reduce the shipping cost by using suitable packaging with the right size, consulting the agents, regularly updating the price, and using Shopify shipping. Most importantly, these are easy steps, so you can effortlessly follow them.
Here are some of the tips that you can use in order to reduce the shipping cost of your dropshipping business, as given below.
- Understand your Product Shipping Requirements
- Consult with a Reliable Dropshipping Sourcing Agent
- Select the Right Sized Packaging
- Keep yourself Updated with the Pricing / Rates
- Offer Free / Flat Shipping for Higher Order values
- Use Shopify Shipping to cut carrier costs
First, Understand your Product Shipping Requirements
Keeping your parcels as small as possible is essential since package weights and dimensions impact shipping costs. As carriers are now charging according to the volume along with the weight, if your product has less weight but holds a large volume, then you have to pay more than the same weight product holding less volume. It’s not necessary to pack an item that is lightweight and small in a large box. You can save a lot of money if you use smaller ones.
Consult with a Reliable Dropshipping Sourcing Agent
The dropshipping business is becoming increasingly popular among e-commerce retailers these days. If you are dropshipping, you don’t need to pay for storage space or even keep products on hand to sell products to satisfied customers.
You will need to be familiar with what dropshipping and its agents are, how they can assist your business, and how it may affect your operations to master your own dropshipping business. The drop shipping agent will source, store, package, and ship the product to your customer on your behalf. There are many agents in the market that can assist you in your dropshipping business. You can take the services of Bestfulfill to get the best assistance in your business.
Select the Right Sized Packaging
When you are sending products to your customers, then choose a perfect fit package for the products, as the cost of shipping depends on the packaging size and weight.
In order to decrease the cost of your packaging, you can use lightweight packaging material or customized mailer boxes, as these options will be perfect for your products. Moreover, you can use recyclable material so that it will not affect the environment.
Lastly, you can use ships-in-your-own container packaging, which means your product will be shipped in its own packaging, and no other packaging material will be added. If you are using custom packaging, then this SIOC packaging will increase the customer experience through its looks and unboxing experience.
Keep yourself Updated with the Pricing / Rates
Keeping yourself updated with the price of your listed products is the most important thing. As you know, you are not managing or maintaining any inventory in the dropshipping business, but someone else is maintaining inventory and filing the shipping on your behalf. So you have to keep connected with the drop shipping company so you will get the latest updates about the price of your listed products. This act will keep you and your business away from any loss.
Offer Free / Flat Shipping for Higher Order values
You can increase your production rate and then offer free shipping to your customers. It will give customers a good impression of your business, and you can also cover your shipping cost.
One more thing that you can offer is flat-rate shipping which means all items will be shipped at the same rate, regardless of their weight, shape, or size.
As a result, you will know in advance how much it will cost to ship ten items within the specified weight range. In this way, you can minimize the dropshipping cost for both the customers and yourself.
Use Shopify Shipping to cut carrier costs
Fulfilling orders with Shopify Shipping is faster and easier than ever before. Merchants can get Shopify shipping services and can save shipping costs by up to 88% in the U.S. Shopify will fulfill your product delivery all around the world.
You can avail of special discounts through Shopify from different shipping companies, including USPS, DHL Express, Sendle, and Canada Post. Furthermore, the Shopify dashboard lets you manage customers, inventory, products, and shipping. Through this platform, you can easily reach international customers and offer them discounts on international shipping.
How Reducing Shipping Cost Beneficial for Small Business Owners?
You can reduce the shipping cost for small businesses by using these given strategies.
- The first thing you can do is choose a suitable packaging material that is lightweight and protects the product.
- Choose recyclable and affordable packaging for small businesses so that it can be easily recyclable and have no environmental pollution, along with an impressive impression on the customers.
- Try to find those shipping companies having lower rates and good services.
- In order to ship orders consistently of the same size and weight, small businesses can purchase a set number of labels in advance to save cost and time.
- You can also cut costs by buying the packaging material in bulk.
- You can use hybrid services to cut the cost of shipping, but these services are slower than the mainstream, so if your business does not have any tagline or promise of faster delivery, then you can use this service.
- You can use custom packaging for your small business to save on packaging costs even more.
Final Remarks
Lastly, I hope you like the article and get an idea to cut your shipping cost for your dropshipping business. The first thing you can do is optimize the product size, shape, and weight or you can consult with the dropshipping agent so they will guide you to a cost-effective plan or you can take their dropshipping services. For perfect-size packaging, you can use custom packaging for your products.
If you want to make sure your business will not suffer any loss, keep connected with the dropshipping company so you will get the correct pricing for your listed products. You can offer flat shipping or free shipping by adding the shipping price to your product cost to reduce your shipping cost. Lastly, you can use Shopify shipping to get an 88% discount on shipping in the U.S.
