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Tips for Reducing Shipping Costs

Many consumers have become accustomed to free shipping for online purchases, often with one- or two-day turnarounds. While this goal may be easily attainable for large companies, it may seem insurmountable for some small business owners. Yet, by fulfilling these expectations, smaller businesses can create a phenomenal customer experience that converts shoppers into loyal, lifelong customers.

Achieving these results requires a lot of behind-the-scenes work by retailers, which must constantly refine their shipping strategy and streamline their fulfillment and delivery processes. To make it even more challenging, this must all be accomplished without increasing prices to unacceptable levels. Once you identify the right shipping partners, however, the process becomes far more manageable.

Here are a few ways to minimize your shipping expenses:

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Use fewer boxes. See if you can consolidate orders with the same vendor in one package rather than using multiple boxes. In addition, keep costs low by choosing appropriately sized boxes.

Reuse boxes and packing material. If you receive boxes and packaging materials, see if you can reuse them.

Be a savvy shopper. Search for discounts, sales or bulk offers when shopping for materials such as packing peanuts, bubble wrap, packing paper and foam.

Assess your inventory. What are the sizes of your products? If they are about the same size, you can buy boxes in bulk. If you prefer using a shipping company instead, use standard-rate boxes to ensure you are spending the same amount on each shipment.

Negotiate prices. Negotiating a good deal requires you to understand what discounts are available from several companies, presenting that data to your potential vendor, and building a relationship with the management team and salespeople. When you review contracts, pay attention to any hidden charges.
Key takeaway: To save money on shipping, consider buying in bulk, reusing shipping materials and making the most of the space in each box.