Everyone wants to save money on shipping. No great secret there. At FreightPros, we're committed to helping our customers, and their customers (and really anyone that's interested in shipping) save time and money on their logistics.
- 5 Ways To Save Money On Shipping Materials And Costs Calculator
- 5 Ways To Save Money On Shipping Materials And Costs Estimate
- 5 Ways To Save Money On Shipping Materials And Costs Per
- 5 Ways To Save Money On Shipping Materials And Costs Incurred
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. This is a very good way to save money for your business. It reduces the cost you spend on paper, envelopes, mailing materials, telephone, and courier services to distribute paper documents. Negotiating better shipping rates is the most obvious way to save money on shipping generally. The leading carriers in the U.S. — UPS and FedEx — are willing to cut rates if they believe they will get more overall shipping volume.
To that end, we've compiled a list of 25 Genius Tips for Saving Money on Your Shipping. We've categorized them for easy digestion between the General Freight Industry, Less-Than-Truckload (LTL), and Full Truckload, but you'll find that most of our tips can be used in any form of shipping. So buckle up, call the kids in for dinner, and prepare to save some serious cash next time you ship.
1. Know Your Industry
The world of shipping is big and bad, and you've got to know your enemy. Whether it's LTL, truckload, or parcel, you've got to know the details of your industry before you can master it. Download our Beginner's Guide to Freight Shipping to get started.
2. Reuse Your Packing Materials
It's easy to save and reuse bubble wrap, packing peanuts, air pillows, and any other sort of packing materials you might get in your next online retail purchase. Anything you save and reuse is something you don't have to buy. Props to Alan Henry over at Lifehacker for the tip.
3. Don't Spend Money on Cardboard Boxes
With a little effort and ingenuity, you can find these bad boys all sorts of places. Hit up liquor stores, grocery stores, and places like Starbucks to help save the environment and cut costs. Brand new cardboard boxes are expensive, and used ones usually work just as well.
4. Make Sure Your Freight is Ready Before Scheduling a Pickup
Shipping is not like calling a cab or Uber. You can't get your freight ready to ship while the driver is on his way. Make sure your freight is ready to go, or else you might end up with a dry run fee, and that can cost you cash.
5. Know the Difference Between 'Value' and 'Price'
The lowest price is not always the best value. Sometimes, paying more up front can avoid additional costs later on. By using a freight broker, you might pay a higher initial cost, but often times they are an excellent investment further down the line of your shipment, or if/when something goes wrong.
6. Pay Attention to Your Invoices
5 Ways To Save Money On Shipping Materials And Costs Calculator
Don't assume your freight charges are always correct. Always review your invoices, and don't be afraid to take your questions and concerns to your broker or carrier. Big thanks to Jose Li, and the Fundbox blog for the tip!
7. Don't Always Trust Freight Calculators
LTL shipping quotes are about more than weight and shipping locations. Online freight calculators can give you a false idea about your freight quote, and that can cost you money in the long run.
8. Know the Lingo
Don't get confused by weird acronyms or definitions in the freight industry. The pages of a shipping dictionary are numerous, and can feel never ending. Get to know your freight terms, and you'll be able to put them to good use to streamline your freight experiences.
9. Inspect Your Shipment at Delivery
Make sure to notate any damage on your delivery receipt. Even if it seems like a little thing, a scratch here or there, mark it on the POD (Proof of Delivery). Without notated damage, you won't be able to file a freight claim for any damage/loss, and this will cost you money.
10. Cut Down on 'Stated' Shipping Costs
Nobody likes paying a ton for shipping (obviously). Adjust your prices to include some of those costs, and your customers will be more likely to buy. Shoutout to Cameron McCool at Bench for the tip.
11. Shop Around on Volume Quotes
Not all volume quotes are created equal. Some freight companies specialize in large markets, small markets, or particular geographic locations. Start your quote search early, and try to find your best deal.
12. Lighten Up
Weight is a major component of pricing in shipping, so avoid heavy packing materials. Go with packing peanuts instead of wool blankets. Anything you can do to cut down on the total weight of your shipment is going to help you get a cheaper freight quote.
13. Know Your Freight Class
Another major factor in the price of a quote is the freight class. Getting the right one is key, or you may end up with a reclass. Given that freight class can be so confusing, it's important to get a handle on it early. Reclasses are a pain in the butt, and cost you money on your shipping.
14. Cut Out Delivery Appointments
It can be tough, but carve out an afternoon to hang out at the house. By giving the freight carrier a large window to deliver your shipment, you can avoid paying extra for a delivery appointment.
15. Get Third Party Insurance
It might cost a little more up front, but if you're shipping expensive or fragile items it will make all the difference if something gets lost or damaged during transit. Most carriers have their own freight insurance, but it rarely covers the full cost of a damaged shipment. Getting third party insurance gives you peace of mind, and makes filing a freight claim much easier.
16. Consolidate Your Shipment
Packaging items together can significantly cut down on shipping and packaging costs. By consolidating your shipment you can cut weight, density, and a chance of damage or loss. It's easier to keep track of one piece of freight than it is to keep track of five or ten (especially if they're small boxes).
17. Pick Up Your Freight at the Terminal
To avoid additional shipping fees like liftgates and residential deliveries, you can always go pick your shipment up from the delivering freight terminal. All you have to do is call the carrier and let them know you're on their way.
18. Determine if Your Shipment is LTL or Parcel
If your shipment is small enough, you can save money using small package or parcel shipping instead of LTL. Parcel shipping is a totally different animal than LTL, so it's important to recognize the difference between the two. Thanks to Steve Chou over at My Wife Quit Her Job for the shipping info.
19. Use a Density Calculator
With more and more freight classes being dependent on density, using a density calculator can help you avoid costly reclasses. Knowing your shipment's density can help in all sorts of ways, and contrary to a freight calculator, you can rely on a density calculator to give you the information you need.
20. Hire a Professional
Freight brokers can get you better shipping quotes, not to mention they can help out with claims, damage, tracking, and so much more. A freight broker is not the same as a freight carrier, and a professional freight broker is key no matter how often you're shipping LTL or (especially) full truckload freight.
21. Ship Early to Avoid the Holiday Crunch
Avoid delays and expedited costs by shipping at least a week early around the holidays. Both LTL and truckload slow down as drivers and carriers take take off work for the holidays. Don't wait to send your stuff. Thanks to Taryn Williford at Apartment Therapy for the tip!
22. Know How Much Room You Need
Always know how many square feet of truck space you'll need. There is always the chance of 'Partialling' a shipment to save money, but if you don't know exactly how much space your freight will take up then that won't be an option. If you're using standard pallets (you should be), know your count and if they're stackable.
23. Don't Forget About Intermodal
If your freight is not time sensitive you can save some serious dough by utilizing the rail and shipping your stuff intermodal. You'll need a broker to help you out with the intermodal process, but by using the rail you can get cheaper freight quotes for your full truckload shipments.
24. Track Carrier Performance
Just like volume quotes, not all freight carriers are created equal. Try different carriers and track their performance to make sure you're using the right carrier for your freight. Once you find one that you like and that treats you right, stick with them. Having great relationships with owners and operators can get you out of a shipping bind in the future.
25. Take Advantage of Backhauls
When you're shipping truckload, getting a carrier on a backhaul can save you serious cash. Once again, you'll need a broker with knowledge of the trucking markets to get you the best deal on backhauls. Some times of the year are better than others, so ask your broker if backhaul could work for you.
If you're a small business owner, you already know that any steps you can take to cut down your company's expenses – no matter how small – will have a direct impact on your organization's success.
So even if you think that you've whittled your shipping costs down to the barest minimums, take a look at the techniques described below. Just a few simple tweaks of your logistics process could result in serious savings!
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Negotiating with Carriers
Tip #1 – Pit different carriers against each other
Shipping rates aren't set in stone. If you want a better deal, call up your account manager and ask to negotiate better rates that will encourage you to continue doing business with the company – and not one of its competitors.
According to Jack Mitchell, president of the shipping consulting firm PANCGroup, '[S]mall businesses often don't realize they also may have negotiating power. If FedEx knows UPS is vying for your business, you've got something to negotiate.'
Tip #2 – Become a USPS bulk shipper
Not everyone will qualify for the USPS bulk shipper program, but if your company is eligible, you stand to save as much as 50% on standard first class rates (even more if you're a non-profit). If you're willing to pay annual fees and permit costs totaling $380, plan to ship 200 or more identical pieces of mail and are capable of sorting the mail yourself, the program is definitely worth a look.
5 Ways To Save Money On Shipping Materials And Costs Estimate
Tip #3 – Check out regional and local carriers
Though USPS, FedEx and USPS tend to offer the most competitive rates, regional and local services (for example, OnTrac in the Western states) may come up cheaper on some routes. Look into options in your area, but be careful to weigh the time needed to compare shipping rates from these second- and third-tier carriers against your potential cost savings.
Tip #4 – Test hybrid services
If you meet certain weight and size restrictions, UPS's 'SurePost' or FedEx's 'SmartPost' services can save you as much as 50% over standard rates by routing your packages through your customers' local postal service office. Delivery times will be longer, but the money you save may make the tradeoff worth it.
Tip #5 – Buy prepaid shipping
Many carriers – including FedEx and UPS – offer prepaid shipping programs that provide discounts of up to 20% if labels are purchase in bulk and in advance. For this to make sense, though, you'll need to anticipate shipping several same weight packages in the future. Don't get caught up by discounted rates if you won't actually use the services you've paid for.
Minimizing Packaging Costs
Tip #6 – Buy shipping materials in bulk
When it comes to buying shipping materials, one of the worst things you can do is to purchase your boxes or shipping envelopes on a 'one off' basis from your carrier or from your local office supply store. Paying retail is a quick way to run up your shipping costs, so take a look at companies like Uline that let you purchase in bulk at reduced rates.
Tip #7 – Take advantage of free carrier packaging
Of course, if you play your cards right, you may not have to pay for packaging at all, as the USPS and other services offer several sizes of free boxes and envelopes. Be careful, though, as these packages may lock you into certain shipping services or rate tiers that don't make financial sense. Evaluate the rates you'll pay for different shipping speeds with and without these packaging options to avoid losing money.
Tip #8 – Reuse shipping materials whenever possible
When it comes to shipping and packaging discounts, volume is key. But that doesn't mean that small businesses without significant shipping volume can't cut their costs! One way to minimize expenses is to save the packaging materials you receive on personal and professional shipments. Reusing these items isn't just eco-friendly; it's friendly on your wallet as well.
5 Ways To Save Money On Shipping Materials And Costs Per
Working with Customers
Tip #9 – Offer discounts for shipping multiple items
If you sell in per-item marketplaces like Ebay or Etsy or other types of online stores, offering shipping discounts to customers that purchase more than one item decreases your overall costs and drives up the average value of your transactions. It's a win-win for you and the customer!
Tip #10 – Pass on extra fees to customers
Setting a limited number of standard shipping rates might save you a few headaches, but it can cost you a pretty penny. Carriers may assess more than 75 special fees on top of their standard rates for such things as Saturday deliveries or required signatures. Calculate shipping costs ahead of time to pass on as many of these costs as possible to your customers.
22. Know How Much Room You Need
Always know how many square feet of truck space you'll need. There is always the chance of 'Partialling' a shipment to save money, but if you don't know exactly how much space your freight will take up then that won't be an option. If you're using standard pallets (you should be), know your count and if they're stackable.
23. Don't Forget About Intermodal
If your freight is not time sensitive you can save some serious dough by utilizing the rail and shipping your stuff intermodal. You'll need a broker to help you out with the intermodal process, but by using the rail you can get cheaper freight quotes for your full truckload shipments.
24. Track Carrier Performance
Just like volume quotes, not all freight carriers are created equal. Try different carriers and track their performance to make sure you're using the right carrier for your freight. Once you find one that you like and that treats you right, stick with them. Having great relationships with owners and operators can get you out of a shipping bind in the future.
25. Take Advantage of Backhauls
When you're shipping truckload, getting a carrier on a backhaul can save you serious cash. Once again, you'll need a broker with knowledge of the trucking markets to get you the best deal on backhauls. Some times of the year are better than others, so ask your broker if backhaul could work for you.
If you're a small business owner, you already know that any steps you can take to cut down your company's expenses – no matter how small – will have a direct impact on your organization's success.
So even if you think that you've whittled your shipping costs down to the barest minimums, take a look at the techniques described below. Just a few simple tweaks of your logistics process could result in serious savings!
Bubble Shooter is such an intuitive game that it takes just seconds to get started. Long time motiviation is guaranted and the highscore is an additional motivation booster. All in all: Bubble Shooter is an awesome browsergame! One of the best casual games so far! Our bubble shooter games are designed for players of all ages. Quick action and arcade-style gameplay are featured in many of our levels. Similar to Breakout, bubble shooter challenges take 2D gaming to the next level. Playing games in our collection is like playing video games from the future!
Negotiating with Carriers
Tip #1 – Pit different carriers against each other
Shipping rates aren't set in stone. If you want a better deal, call up your account manager and ask to negotiate better rates that will encourage you to continue doing business with the company – and not one of its competitors.
According to Jack Mitchell, president of the shipping consulting firm PANCGroup, '[S]mall businesses often don't realize they also may have negotiating power. If FedEx knows UPS is vying for your business, you've got something to negotiate.'
Tip #2 – Become a USPS bulk shipper
Not everyone will qualify for the USPS bulk shipper program, but if your company is eligible, you stand to save as much as 50% on standard first class rates (even more if you're a non-profit). If you're willing to pay annual fees and permit costs totaling $380, plan to ship 200 or more identical pieces of mail and are capable of sorting the mail yourself, the program is definitely worth a look.
5 Ways To Save Money On Shipping Materials And Costs Estimate
Tip #3 – Check out regional and local carriers
Though USPS, FedEx and USPS tend to offer the most competitive rates, regional and local services (for example, OnTrac in the Western states) may come up cheaper on some routes. Look into options in your area, but be careful to weigh the time needed to compare shipping rates from these second- and third-tier carriers against your potential cost savings.
Tip #4 – Test hybrid services
If you meet certain weight and size restrictions, UPS's 'SurePost' or FedEx's 'SmartPost' services can save you as much as 50% over standard rates by routing your packages through your customers' local postal service office. Delivery times will be longer, but the money you save may make the tradeoff worth it.
Tip #5 – Buy prepaid shipping
Many carriers – including FedEx and UPS – offer prepaid shipping programs that provide discounts of up to 20% if labels are purchase in bulk and in advance. For this to make sense, though, you'll need to anticipate shipping several same weight packages in the future. Don't get caught up by discounted rates if you won't actually use the services you've paid for.
Minimizing Packaging Costs
Tip #6 – Buy shipping materials in bulk
When it comes to buying shipping materials, one of the worst things you can do is to purchase your boxes or shipping envelopes on a 'one off' basis from your carrier or from your local office supply store. Paying retail is a quick way to run up your shipping costs, so take a look at companies like Uline that let you purchase in bulk at reduced rates.
Tip #7 – Take advantage of free carrier packaging
Of course, if you play your cards right, you may not have to pay for packaging at all, as the USPS and other services offer several sizes of free boxes and envelopes. Be careful, though, as these packages may lock you into certain shipping services or rate tiers that don't make financial sense. Evaluate the rates you'll pay for different shipping speeds with and without these packaging options to avoid losing money.
Tip #8 – Reuse shipping materials whenever possible
When it comes to shipping and packaging discounts, volume is key. But that doesn't mean that small businesses without significant shipping volume can't cut their costs! One way to minimize expenses is to save the packaging materials you receive on personal and professional shipments. Reusing these items isn't just eco-friendly; it's friendly on your wallet as well.
5 Ways To Save Money On Shipping Materials And Costs Per
Working with Customers
Tip #9 – Offer discounts for shipping multiple items
If you sell in per-item marketplaces like Ebay or Etsy or other types of online stores, offering shipping discounts to customers that purchase more than one item decreases your overall costs and drives up the average value of your transactions. It's a win-win for you and the customer!
Tip #10 – Pass on extra fees to customers
Setting a limited number of standard shipping rates might save you a few headaches, but it can cost you a pretty penny. Carriers may assess more than 75 special fees on top of their standard rates for such things as Saturday deliveries or required signatures. Calculate shipping costs ahead of time to pass on as many of these costs as possible to your customers.
Other Savings Opportunities
5 Ways To Save Money On Shipping Materials And Costs Incurred
Tip #11 – Ask suppliers to use your account numbers
Not all suppliers will go for this, but shipping products against your account numbers diminishes the amount of markup that can be added to your bill and bulks up the volume of business done on your account. Eventually, these extra transactions can give you the leverage needed to negotiate even better rates with your carriers.
Tip #12 – Check for professional association discounts
Do you belong to a local Chamber of Commerce or an industry-specific professional organization? If so, check your member handbook, as many of these groups have pre-negotiated discounts with both shipping carriers and packaging suppliers.
Tip #13 – Look into third-party insurance options
Finally, if you're shipping a large number of expensive items, look to companies like Parcel Insurance Plan or U-PIC Shipping Insurance, which offer coverage at an average $0.45/$100 of insurance (compared to the usual $0.80/$100 charged by most traditional carriers). It's a small thing, but over time and multiple shipments, it can definitely add up!
With all of the recommendations described above, it's important to carefully assess them according to your shipping needs – rather than blindly applying these arbitrary strategies. By determining exactly how each technique will impact your business's bottom line, you'll be able to save money on shipping costs without adding any unnecessary stress to the delivery process.
