When you’re an ecommerce business, it’s essential to achieve good margins in order to make your venture is sustainable in the long-term. Shipping is one of the factors that can have a serious impact on your bottom line so you’ll want it to be as cost-effective as possible in order to remain competitive. So how can ecommerce businesses reduce shipping costs and how does packaging have a part to play?
Why shipping costs matter
Adding chunky delivery costs to goods can be off-putting to customers. Yes, prospective buyers may be lured in with a deal but that enticing headline figure may lead to plenty of abandoned shopping baskets if your company is then bumping up the price with hefty shipping charges.
At the same time, heavily discounting the cost of delivery may leave you out of pocket.
It’s a fine balance and a question that many online retailers struggle to resolve.
Meanwhile, the big household names seem to be able to secure preferential treatment when it comes to working with courier services desperate to secure a partnership. It leaves the smaller independent shops with something of a dilemma – but it’s not an insurmountable problem if the right solution is chosen.
Why are shipping costs going up?
Couriers review their own costs annually and will themselves be at the mercy of forces such as fuel and staffing levels.
Therefore, try not to take price rises personally. Look around for another service if necessary and consider adjusting the price of goods to accommodate any increase in your outgoings – which may also allow you to continue to offer free or discounted delivery to customers.
However, one of the best ways to reduce costs is to look at packaging.
Many sellers could cut down on what they pay by using less weighty packing materials when sending out items for delivery. Cardboard, which is bulky and cumbersome, may add quite substantial amounts to shipping over time.
Less weight equals less cost.
Polystyrene packaging is:
- Lightweight and cost-effective
- Robust and durable
Choose light polystyrene inserts to protect goods in transit or polystyrene chips to create a cushioning effect. It’s flexible, versatile and used by a wide variety of ecommerce businesses to save money on shipping and still meet high customer expectations.
Reduce shipping costs with polystyrene