Reduce Shipping Cost
LEELINE offers you cheap shipping with many routes & methods. We help you with shipment optimization and mixed transportation to reduce shipping costs.
Get 30 days of free warehouse space to save recurring STORAGE COSTS.
Years Of Experience
Free Hassle Shipping From China
Get short sea routes to reduce shipping costs. Competitive rates for both FCL and LCL shipments. Right container choice according to your shipment to reduce shipping costs.
Easy access to seaports from our warehouses. No big transportation charges from ports to warehouses.
Shipment optimization before Air shipping saves package space and shipping charges.
We handle all customs paperwork for sensitive materials for smooth clearance. No more delays at your urgent Air shipping.
Get extra protective layers for sensitive & fragile products. We help you with cheap Rail shipping for both domestic and international routes.
Supervised loading and unloading to avoid product damage. In short, FAST, CHEAP, and SAFE Rail shipment for you!
Customized and dedicated shipment from supplier to your doorstep. Add multiple suppliers to your shipping plan and get consolidation before shipping.
We MERGE and REPACK your shipment in optimized packaging. Handle all suppliers in a single shipping plan.
Avoid high Alibaba freight fees on your shipping with us. Get customized shipping plans for many Alibaba shipping. Short delivery times with customized shipping strategy.
Real-time tracking and operations updates. Easy to manage and expand.
Direct shipping to Amazon center with processing. Elegant packaging with branding materials. Get custom packaging with low package dimensions for low Amazon fulfillment center fees.
We inspect every product before shipping to avoid bad reviews.
Why Choose Us?
Competitive and cheap rates for every shipping method. Get time-to-time shipping discounts as our regular client. Fast shipping in your budget.
Extra prep services and inspection are available at low rates. Skilled staff with 10 years of experience. We filter out damaged products and replace them with functional products.
Smooth customs experience with expert handling. We handle all import and export customs to avoid shipment delays. No more extensive paperwork hectic for you. Easy clearance for all sensitive materials and chemicals.
Safe & Secure Shipment
No more product damage with supervised loading and unloading. Extra protective layers (bubble wrap) for sensitive & fragile items. You get your item whole and intact.
Hear it from fellow Products Wholesaler
Great working experience with LEELINE. I have always struggled with budgets as a small business owner. Thanks to them for making everything possible in my budget. I love their Friendly and cooperative staff. Best shipping company!
– Mary, Texas
Ship From China and Make Big Money
We offer the best wholesale price and high quality products and help you ship from China.
How to Reduce Shipping Cost?
How to reduce shipping cost?
I know you have the same question. LEELINE has compiled this guidebook after dealing with thousands of shipping cases. Get valuable TIPS and HACKS to achieve lower shipping costs. After reading, apply these tips on your eCommerce shipping for more profit.
Keep reading about cost savings on shipping for your eCommerce business.
How Much Should Small Business Charge For Shipping?
Shipping depends on various factors, including weight, size, and location. Your shipping must not exceed 5% to 8% of your net revenue. There is no exact rule for this. Here is what your ideal shipping rates look like.
Suppose you have a product with a price of 10$, and you are selling it for 20$ or 25$. Your average shipping cost must be below 2$ to 3$ because you need 10$ to 20$ for marketing. You also have to cover operational costs. So overall, your shipping must be below 5$ to 10$. In some cases, it goes beyond this limit.
You need urgent shipping or shipping price hikes during peak seasons. High shipping fees are justifiable in those cases. Small businesses can go with standard shipping and sea freight. Most Small businesses have LCL (less than container load) shipments. Shared containers are best for LCL shipping.
9 Ways to Reduce Shipping Costs
Experts have tested many hacks & tips to give you exact ways to reduce shipping costs. No doubt shipping is a huge expense. Reducing shipping costs gives you better profit margins. Some suppliers offer free shipping, but it is very slow. Here are a few strategies to reduce your shipping costs :
- Multiple quotes and negotiations
The best way to reduce your eCommerce shipping costs is through direct negotiations. Contact many shipping companies and agents. Either go on a B2B marketplace or direct search on google.
Share your shipment details and ask for a quote with a different shipping method. Different shipping methods have different rates. After getting replies, compare their rates and transit time. Now negotiate over pricing.
Show them your future potential. You are more likely to get a good deal if you need continuous shipping. One-time services have fewer chances of negotiations. Bulk quantities also get good discounts. You get good discounts if they see any opportunity or long-term relations.
- Shipping methods
Every shipping method has different transit times and shipping costs. For example, Air shipping is fast but expensive. There are different preferences for different shipping options. Choose the right shipping method to save shipping costs.
- Air shipping: Urgent and fast shipping. Best for time-sensitive products because transit time is almost 5 to 8 days(China to the US).
It costs around 4$ to 8$, which is very expensive for low-profit margin products. Choose only if you have a good profit margin and the product is time sensitive.
- Sea shipping: It is a Slow but cheapest shipping method. Shipments go in containers, so you get a shared or full container. A full container from China to the US costs around 3000$ to 5000$.
Shared space costs depend on your shipment size. Most used method and is good for bulk shipping with flexible shipping time.
- Express/standard shipping: These are for small shipments weighing up to 150 pounds. Its limit varies with carriers. Express is the fastest shipping method. It has a shipping time of 4 to 6 days. Shipping through standard freight takes up to 10 to 15 days.
Go with express shipping If you need your parcel on an urgent basis. Otherwise, standard shipping saves you good money.
Taking a deep dive into shipping methods gives you a clear idea of what you need. It is the best thing you can do to save on shipping costs. Choose the right shipping method with proper research.
- Shipping routes and carriers
Different routes have different prices and shipping times. For example, Shenzhen to New York is more expensive than Shenzhen to LA. It is due to the shipping distance difference between both shipping methods.
The same thing applies to sea shipping. Different airlines have different rates and charges. Better to go around and explore your possible options. Best to choose either the closest sea or air port or mixed transportation. Don’t skip, I have explained mixed transportation in the following section.
- Mixed transportation strategy
Use cheap transportation methods to reduce your shipping costs. Suppose you ship your inventory to the US from China via sea shipping.
Either ship from China to the east coast or west coast. Both have different transit times and shipping rates. The west coast is cheaper than the east coast.
I use Rail to ship containers from the warehouse to the port. And use trucking for short distances. After that, use China to the US west coast sea shipping. Cheap shipping with short transit time. Then use trucking for final shipping destination delivery.
But this won’t apply in every case. It is time taking and hectic to manage different transportation. Better to consult with an expert for your final destination.
- Many shipping carriers in your shipping strategy
The main motive of this strategy is never to depend on a single shipping carrier. This is a good strategy if you are a small business or have an eCommerce store. It gives you a good way to explore the service of different shipping carriers. Use USPS priority mail express for fast shipping.
They have different rates for every shipping zone. Explore regional carriers to meet customer expectations. Fast local delivery option for eCommerce businesses. All the major carriers ship products with flat-rate shipping. So no negotiations and deals.
- Optimized shipment
Shipping charges depend on the weight and size of the shipment. Make your shipping packages compact and small. Lower your package weight with light packing materials. Most companies use dimensional weight. So better to work on both to reduce package weight & size.
Suppliers often offer free packaging. You go with your own packaging for a customized package. Organize and merge your products while packaging. It saves space and reduces size & weight. You save money on shipping.
Inspection filters out damaged products from shipment. There are two benefits to this. First, You avoid potential bad reviews and angry customers. Second, you don’t have to pay for the shipping of damaged products.
- Booking and customized plans
There are a few peak days and some off-seasons during the year. In peak seasons, demand gets high, and prices increase. Christmas or Easter is the best example of peak seasons. Better to go with the booking to avoid high shipping fees.
Choose customized plans for different suppliers and different peak times during the year. Adjust your shipping routes and costs. You also get discounted shipping rates on customized plans. It shows you are a potential long-term client to shipping companies.
- Shipping Insurance
Choose the best possible insurance. Avoid carrier insurance like UPS or Fed-EX. Go with third-party insurance with good terms. Expensive insurance does not mean it is good or bad insurance. So do your proper research before choosing any insurance.
Can Outsourcing Reduce Costs?
Outsourcing from the right place can reduce shipping and overall costs. Here are a few ways to reduce costs with the right outsourcing approach.
- Local outsourcing:
You don’t need to pay hefty customs and import fees. Local suppliers or manufacturers have ready-to-ship inventory. You save not only shipping costs but also long transit time.
- Fast Manufacturers near ports:
Trucking and Air shipping cost a lot. You can get cheap sea shipping from manufacturers near ports. Overseas manufacturers have low product prices and easy-to-get customization.
- Complete sourcing + shipping deal.
Some suppliers give full deals, including sourcing and shipping. Get the full deal with negotiated trade terms. You must have your agreement with trade terms written on it. Most outsourcing companies and agents give these deals. You save shipping costs along with cheap products.
Looking for the Best China Freight Forwarder?
Leeline helps you ship from China to Anywhere in the World!
FAQs about How to Reduce Shipping Cost
What is the cheapest way to ship for a small business?
Sea shipping is the cheapest shipping option. Yet, it has a longer transit time and waiting period for importers. We recommend keeping backup stock during long transit time. Go with a shared container if you have an LCL shipment. It further saves you more.
What makes shipping costs high?
The big factor is shipment size, shipping method, and location. You should also consider Labor costs, fuel surcharges, and comparative method’s fee. Every shipping carrier has different shipping fees. You go around and check their competitor’s rates.
Does UPS charge by weight or size?
UPS charges with “dimensional weight,” mixed with actual weight and size. Major carriers use the same Package dimensions standards. Use small or compact packages to reduce shipping costs.
Business needs to continue shipping for an uninterrupted supply chain. Most of them overspend on shipping just to keep it continuing. It results in high shipping costs and low-profit margins. Better to choose a shipping company with skilled staff for low rates.
LEELINE has skilled and experienced staff who are happy to work with you. Contact us to start your shipping journey Now!
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Hey, I’m Sharline, co-founder of Leeline. We’ve helped 5000+ customers shipping from China.
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