Shipping costs are one of the biggest expenses for many small businesses. Here are four tips to keep shipping costs under control:
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Deal with Multiple Companies
All shippers have pricing schedules based on quantity. The more times you ship, the lower the average price becomes. Small companies often do not realize that they may also have a bargaining power. If you normally ship large quantities of products, compare prices and try to convince the shippers to offer lower prices. For example, if Fed Ex knew that UPS was competing for your business, you might be able to persuade them to lower their prices.
Use the Shipping Company’s Packing Boxes
If you use your own boxes, you may face additional charges if your box size exceeds the size used by UPS and FedEx. To avoid these extra fees, consider using shipping company-provided packaging, which does not charge a fee.
Deal with a Local Shipping Company
Local carriers often offer the same services as FedEx or UPS but at a lower cost. Keep in mind, however, that their services may be limited.
Get Insurance from a Third Party
Instead of buying insurance from the shipping company itself, you can get insurance from another company that may charge less. This is a good option if you frequently ship expensive items.
