Shipping costs can make or break a deal when it comes to eCommerce, especially when you have to ship huge items. For small items, retailers are increasingly offering free shipping and so it becomes all the more important to control this cost.
You can cut down the shipping costs through three ways. Let’s discuss those ways.
If you are already having a shipping carrier, negotiate the shipping rates. Follow the following steps for successful negotiation.
- Review and research: Before you approach your shipping carrier, conduct little bit of research. Check your shipping bill history and see the extra fees that are being charged to you. See how you can cut back on them, and if you can’t, negotiate the rates for those fees. Also, see what charges other carrier services are offering.
- Call your current carrier: For negotiating, don’t resort to emails. Better call them or visit them personally. Speak to manager or a representative who has the authority to approve new shipping rates.
- Ask for discounts: Just ask for lower shipping rates without beating around the bush. Ask for discounts on accessorial fees, remote deliveries, dim divisor, fuel surcharges and any other extra fees that are being charged to you. You can even ask for contracts if you are fine with locking yourself in for yearly or multi-year contracts.
- Name competitors: If you are aware of the competitors offering lower shipping charges, let your carrier know. They should be aware about other shipping carrier options available to you.
- Growth potential: Let the shipping carrier know how much business they could get with the growth in your business. If they want your business, they will try to match your proposal.
- Ask suppliers to use your shipping account number: Inbound shipment along with outbound shipment will boost your volume, empowering you with better credibility for shipping negotiation.
- Shift to cheaper shipping carrier: If your current shipping carrier refuses to negotiate for lower charges, do not hesitate to jump over. Your main goal should be lower shipping charges and not networking.
You should always look around for better deals. Sticking to one carrier is as good as being an ostrich with a head buried under the sand. Don’t be an ostrich. Compare the rates and choose the appropriate option. For example, if you need to deliver a package in 2 days, paying for 2-day air parcel delivery doesn’t make sense when FedEx guarantees 2-day delivery service at much lower rate.
Through fulfillment services that warehouse, package and ship orders for you, you can save time and money. Services like Shipwire that can warehouse, pick, package and ship your order are also great. The point to be noted over here is, although these services do not necessarily help you save money on the actual rates, they are great for saving you ton of time that can be reinvested in managing and marketing the online store.