5 Ways To Save Money On Shipping Materials And Costs

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5 Ways To Save Money On Shipping Materials And Costs5 ways to save money on shipping materials and costs per5 ways to save money on shipping materials and costs estimate

One of the biggest challenges for new entrepreneurs is the unexpected and often overlooked costs of shipping. This not only includes costs associated with shipping products to customers but also the costs of having supplies shipped to you.

Of course, there are many responsibilities that require the attention of new entrepreneurs while launching a business, and any number of ways to reduce costs in other aspects of the business. Shipping, however, can account for as much as 25 percent of your overall costs, so why don’t more entrepreneurs dedicate resources to managing it?

A penny saved is a penny earned, and those pennies can really add up when you're talking about ecommerce shipping costs. EcommerceBytes takes a look at the importance of using boxes of the right size for the right order in today's column - and we weigh the pros and cons of using carton-sizers to customize your shipping boxes. Cheap USPS Shipping for Small Businesses. For a small business, like an e-commerce store, shipping can be very complicated and get expensive. Shipping prices are hard to understand and negotiating for cheaper shipping rates with carriers is not easy.

Related: For Ecommerce Retailers It's Still a Rough Ride Across International Borders

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What many entrepreneurs do not know is that a small investment in time can result in huge savings and even make business easier on you. Here are seven tips entrepreneurs can use right now to help get control of their shipping expenses.

1. Get acquainted with your representative.

Every major carrier, including FedEx and UPS, have representatives around the country, even in remote and rural areas. The job of these reps is to negotiate rates, answer questions and make the shipping process as comfortable as possible for entrepreneurs.

Of course, reps are sales agents, so their goal is to get you to ship as much as possible. The more you ship, the more they benefit. With that said, our FedEx reps were crucial in the growth and success of our first company, all because we leaned on them for information, resources and help.

2. Leverage flat rate shipping.

All major shipping companies offer flat rate options, which are great for standardizing the process and helping ease the variability normally associated with shipping costs. USPS, FedEx and UPS all provide flat rate boxes for free, which in itself is a huge savings.

Shipping companies set flat rates by zones, or distances the package travels. If you find information for different shipping zones confusing, be sure to speak with your representative and understand and compare the pricing before you decide to use them.

3. Negotiate shipping rates.

Carriers know that once you start using a specific company for shipping, the inconvenience and cost to switch will keep you a customer for a long time. For this reason, companies will provide incredible incentives to secure you as an account -- you just need to ask. They will also help you with the process and even subsidize the costs of switching if you are already using another company.

Even if you are not looking to switch, it is always a good idea to price compare once in a while and determine what the competition is offering. Rates, benefits and even technologies change, and if you have a good relationship with your existing rep, you should be able to renegotiate any new benefits into your current agreement.

Finally, both FedEx and UPS offer discounts based on volume, so as your company scales, make sure you communicate these changes to get better rates. Again, all it takes is asking.

4. Use their equipment.

Most major carriers, such as FedEx and UPS, can and will provide software and equipment for your company, including computers, printers and scales. Depending on your volume and what you negotiate, many will provide it at no charge or find grant money to help subsidize the costs.

Related: Planning a Subscription Business? Here Are 3 Tips to Streamline Shipping.

5. Manage your supplies.

Packing supplies, like death and taxes, are one of those miserable realities for entrepreneurs. There are large and incredibly effective companies that focus only on shipping supplies, such as ULINE, which can typically ship within a day, provide customized volume discounts and even provide incentives for large orders.

A little time and research, however, can lead you to smaller companies that will bend over backwards to get your business.

Yonah Rothman, sales director at Complete Supply USA, says, “We find that most entrepreneurs default to companies like ULINE, not realizing they can get the general supplies for far cheaper. When we tell them we can provide the same supplies at a 25 percent discount, they cringe at how much money they’ve wasted.”

Lastly, packing supplies, such as bubble wrap, are expensive to ship (you are, after all, shipping air) and can take up a disproportionate amount of space compared to their functionality. For this reason, look for partners who can provide equipment to make the packing supplies directly in your facility. Most will even subsidize the cost and installation as long as you agree to purchase the supplies from them.

6. Consolidate your accounts.

Because shipping rates are often based on volume, it benefits you to ship as much product on your account as possible. This includes incoming shipments of supplies and raw materials. When possible, ask your vendors to ship product on your account, which many will do. This also eliminates any markup you may be paying on that cost.

Be careful, however, as many shipping companies require payment within 15 days, while your vendors may provide longer and more flexible terms.

7. Seek out shipping refunds.

Another way to save some money is in the on-time shipment guarantees provided by large carriers, including FedEx and UPS. While shippers are incredibly effective, roughly 2 to 10 percent of the time, depending on method of shipping and time of year, FedEx and UPS do not meet their guarantees and you are entitled to a refund.

Many of these refunds go unclaimed. Package auditing companies, such as Refund Tiger, can manage your account and provide refunds in exchange for a percentage of the money recovered.

As Izzy Gewirtzman, CEO of Refund Tiger explains, “We take all the work out of the process of screening your packages and filing for refunds. It takes just a couple of minutes to set up account and our fee is a percentage of what we save you -- if no refunds are processed, you pay nothing. It will always be a net positive for entrepreneurs.”

In addition to refunds, package auditing companies offer valuable shipping reports and assistance with negotiating.

Shipping will continue to be a significant business cost so long as the Internet continues to enable aspiring entrepreneurs around the world through platforms such as Amazon, eBay and Etsy. For this reason, new entrepreneurs -- and many experienced entrepreneurs -- should prioritize their shipping functions to find serious savings and benefits.

Related: This Is the Most Beautiful Visualization of Global Trade You'll Ever See

Shipping fees can be a costly surprise to new eBay sellers who may not be familiar with sending items through the mail. Depending on the size and method of sourcing items, shipping fees can be the most expensive part of listing and selling items for some eBay sellers. Keep reading to discover seven ways to save money when shipping eBay items and improve your profits.

Weigh items before listing

After taking photos and measurements of your item, it is ideal to immediately package the item ready for shipping. Not only does this reduce the chance of damage before the item is shipped to the buyer, but it also helps with calculating shipping costs.

Before creating the listing, carefully wrap the item in protective packaging material and put it an appropriate box or padded mailer. Then, weigh the entire package using a digital scale. These can usually be purchased for less than $20.

Weighing the item in this manner makes using eBay’s Calculated Shipping option easy. Calculated Shipping automatically calculates the buyer’s shipping cost based on their location and the dimensions and weight of the package.

Read more about packaging items safely for shipping here.

Source cheap or free packaging materials

One area in which it is easy to save money is packaging materials. People who have recently moved often want to get rid of boxes, packing peanuts and bubble wrap quickly. Keep an eye out for packaging being offered on community websites and Facebook groups. Freecycle or Craigslist are also worth a look.

To purchase cheap packing supplies, consider eBay and Amazon. Prices can be very competitive, especially for packing tape. UPS and other shipping companies offer a free supply of limited packaging materials for customers. Avoid moving stores such as UHaul that tend to have a high markup on packaging supplies.

Whichever method you choose to use to find cheap packaging supplies, make sure the materials are fit for purpose before using. Boxes should be clean and sturdy. Don’t skimp on fillers that will help prevent item damage.

Shipping company discounts

Sellers are eligible for substantial USPS and FedEx discounts when using eBay labels. There are discounted international shipping options as well as domestic. The biggest discounts are available for eBay sellers who complete more than 300 transactions every month.

There is no formal enrollment process required to access these discounts, though sellers must print USPS and FedEx shipping labels through Seller Hub or My eBay to be eligible.

eBay sellers are also able to access special discounts with UPS. Sellers looking to take advantage must first sign up for a UPS account with their eBay seller ID. After completing a sale, sellers then need to access their UPS account to purchase and print shipping labels.

5 Ways To Save Money On Shipping Materials And Costs Calculator

More quick tips for saving money on shipping on eBay

Here are a few more ways to save money when shipping eBay items, from combined shipping discounts to shipping insurance.

5 Ways To Save Money On Shipping Materials And Costs Per

Offer combined shipping discounts to buyers

eBay has a number of different ways to offer combined shipping discounts to buyers. Offering this kind of discount can not only save both buyer and seller money but also incentivize buyers to purchase more items.

It is easy to set up shipping rules that will automatically add a discount to the shipping cost for buyers who do purchase more than one item.

Always compare shipping prices

Don’t assume that all shipping companies are equal and have the same pricing structures. Depending on the weight, dimensions, desired speed of delivery and destination of the item, shipping costs can vary between companies.

As a new seller, it is important to shop around and experiment with shipping. With time and experience, choosing a shipping company will become second nature.

Buy extra shipping insurance

Though it may not seem a money saver at the time of purchase, having shipping insurance can save sellers a lot of money in the long run.

With eBay’s Money Back Guarantee offering buyers a full refund in the event that an item does not arrive, sellers can easily find themselves out of pocket. Having shipping insurance can definitely help in these unforeseen and unfortunate situations.

A final tip – Never overcharge for shipping

eBay is not favorable towards sellers who charge high or excessive rates for shipping. Sellers who offer free or low cost shipping on the other hand, are rewarded with higher visibility and ranking.

eBay aside, it is not secret that free shipping has become a common selling point for many online retailers. Some buyers will actively search for matched listings with the lowest shipping costs.

5 Ways To Save Money On Shipping Materials And Costs Incurred

While offering a fair price on shipping in all listings may not immediately be a money saver, it can however prove to be more profitable in the long run.

Read more about getting shipping rates right here.

Veteran eBay sellers, do you have any tips of your own for saving money when shipping items?