Shipping costs to save your company money

Shipping costs can really add up and cost your company a lot of money. It's not only the shipping costs alone but all the packing supplies you need in order to send your products. Some shipping companies will provide you with supplies in exchange for a contract. If your company is struggling with costs and you are looking for ways to save money, here are some easy ways to reduce your shipping costs:

Step # 1 - Buy in bulk
You can easily save yourself a ton of money when you buy your products in bulk. Buying all your shipping supplies with one order is much cheaper than purchasing them individually or periodically throughout the month. When you buy products in bulk, ask your supplier if they are willing to waive the shipping costs, this amount can save you thousands of dollars a year. Make sure you don't purchase everything in bulk because this can lead to dead inventory.

Step # 2 - Supplies
When you are evaluating your shipping costs, take a look at the brands you use. Does the generic brand masking tape hold-up as well as the name brand? Look for ways to reduce shipping costs by purchasing the right supplies. Check out online vendors for tape, boxes, bubble wrap, labels, and other shipping supplies instead of using Staples or other office supply stores. The only time you should purchase your supplies through them is if you run out and the online vendor will not be able to get your supplies to you in time to ship your products to your customers.

Step # 3 - Shipment Companies
It is important to price shop often, this is very important when it comes to picking a shipping company. UPS and FedEx are attractive, but they often come with higher prices. The United States Postal Service (USPS) is usually the cheapest option and you can even set-up an online account to ship your products. Depending upon the type of shipments you are sending out, the larger shipment companies may be your best decision as they will save you more money in the long run.

Always look at the smaller shipping companies that are just getting started. They tend to offer great deals because they want to expand their customer base. They may not offer the fastest shipping services out there, but they will be pretty competitive when it comes to shipping prices.

Step # 4 - Charge More
If your shipping costs are continuing to rise, make sure your customers are paying for them. You can simply increase your prices by a few dollars or cents and your customers may not even notice. This way you will have enough money to cover the costs of all the packaging supplies and you will have money to cover the cost of shipping.

Step # 5 - Freight Shipping
Another great way to save money is to ask your vendors to ship your products via freight. Freight shipping is much cheaper than traditional shipping; you just need to make sure you have a warehouse that can receive the products. Freight shipping is beneficial for companies that order their supplies in bulk. It reduces your costs because the vendor is combining your order with others that need to be dropped in the same vicinity.

Always make a list of all your costs that are associated with shipping. This way you can compare your past costs with the current costs you are paying for supplies. It also helps you keep track of the amount your current shipping providers have given you and why they may have increased the price over the past year.