Shipping Tips For Small Businesses

Want shipping tips for small businesseses to save shipping costs? 

Wait! Our expert has dealt with hundreds of eCommerce shipping. We have come to these tips to save you money and time. No more high shipping rates and hectic processes after applying these hacks. Get pro tips to scale your small business as well.

Keep reading about helpful tips and hacks from our experts. Save high shipping costs and extend your profit margin. 

How does shipping work for small businesses?

Small business need two types of shipping. Either Shipping from suppliers or Shipping their goods to customers. Here is how shipping from the supplier works. 

1: Suppose they have an overseas supplier. So whenever your inventory is ready to ship ask the supplier about shipping. 

2: Hire a shipping company with door-to-door service. They pick up your shipment from a supplier and handle it until your doorstep. 

3: It is usually an LTL or small shipment unless they order in bulk. Ask for shared shipping in sea freight.  If your product is time sensitive and has good profit margins, you also select air shipping.  

Pro tip: Small businesses don’t have huge budgets so sea shipping is perfect for them. 

4: Share your paperwork & receipts with the shipping company. They handle the case in customs. 

Receive your shipment from the shipping company. That’s how small business shipping works.

Shipping Tips For Small Businesses

Small businesses have low-profit margins, so shipping costs matter most to them. Here are tips for them to reduce shipping costs. We are sharing tips for both supplier shipping and customer shipping. Here are these tips: 

1. Multiple carriers

Use multiple shipping carriers for customer shipments. Explore USPS (United states postal service), Fed-Ex, and local carriers. Major carriers have small business programs at good rates. These are well-structured small-business shipping solutions. 

You also have a backup if you are stuck in their shipping process. Use fast services (priority mail, DHL express) at low rates. Your customers are also happy with prompt shipping. 

2. Shipping method

Use cheap shipping methods while outsourcing from suppliers. Air shipping is expensive, and sea shipping is cheap but slow. Keep your backup stock for customers and outsource through sea shipping. 

Go with a shared container if you have a small shipment. Use shipment optimization and consolidation service to save space and shipping costs. 

3. Prep or extra services: 

Get your prep services from a supplier or shipping company. Ask your supplier to add custom labels and branding materials before shipping. Inspection before shipping filters out damaged products. 

You avoid paying shipping fees for damaged products. Get your packaging and branding at a low cost from the shipping company. You save huge labor costs and time.  

4. Shipping Strategy

First, be clear about your budget. What do you need? What do your customers need? So the answer is you need cheap shipping, and customers need expedited delivery. 

Calculate your shipping costs and dimensional weight. Now choose the best shipping solutions that cater to both of your needs. Make it a win-win situation for all.

5. Shipment insurance

Having insurance saves you from a huge mess. Either it’s for supplier shipment or customer shipment. Sometimes international customers’ packages get lost, so insurance covers those losses. Better to use third-party insurance for good rates. It gives you peace of mind and damage control.

6. Package optimization

Use succinct shipping packages to achieve less dimensional weight. Employ light materials and avoid adding extraneous components. Better to select a box that has been specially developed for your product.  Use bubble wrap as a protective layer because it’s light and takes less space. 

Pro tip: Reuse your supplier’s shipping boxes with branding and modifications. They are often good-quality boxes. 

7. Free shipping 

Only offer free shipping when you have good profit margins with competitive prices. Some businesses offer fast and free shipping on a certain average order value. It encourages customers to order. 

8. Negotiation with third-party logistic companies

A Third-party logistics company has flexible rates. You negotiate with ease. Try to show them your future and long-term collaboration. Show them your seriousness and negotiate with them. Better to go around and get different quotes. These shipping services help to lower your fulfillment and shipping cost.  

9. Fulfillment centers 

Outsourcing your work gives you more time and is good for expansion. If your operations are expanding, then fulfillment centers are your way. Most drop shipping sellers use fulfillment centers.

Keep your stock in warehouses at lower rates. Outsource your fulfillment and shipping management to the fulfillment center. Focus on expansion and optimize your supply chain. 

How to ship packages for small businesses?

Small business wants fast shipping for their customers. So they also have to optimize their process as well. Here is how you ship packages. 

Step 1: Prepare your package with the product. Add branding materials with compact packaging. Don’t add unnecessary things to it. Choose an appropriate package size. 

Step 2: Print shipping labels from your online store software. Check their address and see their shipping zone. Calculate shipping costs and paste the label on your package. 

Pro tip: Add a handwritten note in your package if you are starting. It builds a strong relationship with your customer. Increase brand loyalty. Add a few small extra items as a gift. Only do it according to your budget. 

Step 3: Choose your carrier. See their rates on local and international shipping. See USPS priority mail service before going with USPS shipping. (It depends on you). Go to the local post office. If your carrier offers free package pickups, then utilize it. 

Step 4: Update your tracking number in your shipping software. Also, add shipping expenses for profit calculations. 

FAQs about Shipping Tips For Small Businesses

What’s Next

Shipping is almost 5% to 10% of your net profit. You save more money with shipment optimization. Use small and compact boxes with the right method for shipment optimization. 

Most starters don’t know about this concept. They end up losing their money. Good shipping companies guide you through these processes. 
LEELINE optimizes your shipment process. No more high shipping rates due to one wrong decision. Contact us to discuss your shipment optimization strategy Now!