If you are a small business owner and your business does a lot of shipping, the newest changes and increased rates will impact your finances for sure. If you want to make a profit, receive orders, ship your products, and deliver them on time, you need to learn how to manage shipping online properly. What we are trying to say is that you need to learn how to negotiate small business shipping fees. In this article, we are going to share with you a few tips and tricks on how business owners should keep the shipping fees and costs under control:
- Clear your mailing lists – With the expense of each shipping and mailing rising, it is smart to take time and review the current lists and maybe get rid of the outdated and wrong addresses. By doing so, you can save money immediately. Did you know that more than 30 million US citizens move and more than 10% of them change ZIP codes every year? All bad or wrong addresses result in costly returns, shipping delays, and customer dissatisfaction.
- Use a reliable shipping solution – If you bring the shipping in-house, you will qualify your small business for what the USPS refers to commercial-based fees, which are less than retail fees. The lowered rates are available to all customers who use desktop computers or postage solutions.
- Rate shop – You can rate shop all of your parcels among the most popular and available shipping carriers. If your package (ready for delivery) weighs less than 13 ounces, we highly recommend you to use first class mail (this is the most affordable and lowest cost shipping & delivery method and it is highly recommended for lightweight packages), besides your software solutions providers can also offer you print shipping labels to ensure your package, this is also highly recommended for any shipping carrier.
- Take advantage of flat rate pricing – Did you know that priority mail is probably the cheapest option for packages that are over 14 ounces to 3 pounds. If you decide to use commercial rates, your small business can save around 19% for Priority Mail and more than 30% for Express Mail. The difference is huge. A 5-pound package that once cost you around $15, can be now sent for as little as $3 or $4.
- Make sure to consider ground shipping – You can’t count on Parcel Post anymore as this option is no longer available. Parcel Select is probably the best solution for medium and large packages. This is a quite popular service from the popular shipping carrier – USPS and they have launched this option a few years ago. This option is specially designed for medium and large shippers who are looking for an affordable and economical ground delivery service. There is another option you can take into consideration – Standard Post, however, if you decide to use this option, you will have to pay 20% more. The first option or Parcel Select offers really good pricing for ground delivery. These are just a few recommendations for you to keep in mind. We think that these are the best options at the moment for startups and small businesses.
So, how you manage shipping online? Which shipping carriers are you using? How does your small business deal with shipping costs? Do you maybe have your own personal tips to share with us?
We hope the tips and tricks presented above will help you better manage your shipping process and hopefully help you find and negotiate small business shipping fees. Use these tips and don’t forget to share your experience in the comments below.