Top 10 Ways to Save Money on Shipping in 2023

Shipping is a crucial component of the eCommerce industry, easily connecting sellers and customers. However, rising shipping costs have strained businesses and individuals alike. In 2023, finding ways to save money on shipping is more important than ever. Here are ten practical tips for Canadian sellers to reduce their shipping expenses.

1.  Research Shipping Carriers

Choosing a shipping company is like shopping for any other product. Like shopping, you must carefully evaluate product features, reviews, and prices. You want to get the best value for your money.

Researching shipping carriers helps you find the most cost-effective options that match your service standards and budget. Informed decisions lead to reduced shipping expenses and improved shipping efficiency.

2.  Utilize Flat-Rate Boxes

Flat-rate shipping offers a fixed fee, regardless of the package’s weight or destination. This is advantageous for businesses with consistent-sized products or heavier items, as it provides cost predictability and competitive pricing. Shipping a small box with a book costs the same as a small box filled with bricks.

This pricing consistency ensures your shipping rates are competitive, as the fees remain the same, regardless of the package’s weight. This not only benefits your business by offering competitive pricing but also attracts customers who appreciate the fairness and transparency in pricing, ultimately enhancing your reputation and customer satisfaction.

3.  Try Zone Skipping

Zone skipping is a logistics strategy that is essential for optimizing shipping operations. It consolidates and ships packages directly to their final destination zones, bypassing intermediate distribution centers. Imagine a situation when a business from New York needs to send several items to different customers in another location—say, California.

Instead of individually sending each package on a distinct journey, zone skipping streamlines this process. Multiple packages intended for the same destination zone are combined and shipped there together, where they are then distributed to their respective recipients.

This technique is comparable to the idea of cutting out the middleman in a transaction. It simplifies the supply chain, reduces transit times, and lowers associated shipping costs by removing detours through intermediate distribution centers. Zone skipping has numerous advantages: it decreases the amount of handling touchpoints, which reduces the possibility of damage or delay and makes a significant contribution to cost-effectiveness.

4.  Buy Packaging in Bulk

Buying shipping supplies in bulk reduces costs per unit, ensures a steady supply, and provides better negotiation leverage with suppliers. It’s cost-effective, prevents production delays, and minimizes packaging waste.

By utilizing materials efficiently over time, it minimizes packaging waste. This waste reduction aligns with sustainability goals and promotes responsible behaviour towards the environment, which is increasingly essential in today’s environmentally conscious consumer market.

5.  Reuse Packaging

Save money by repurposing boxes, bubble wrap, and other packaging materials from previous shipments. This approach has two distinct benefits:

Firstly, it generates considerable cost savings. By extending the lifecycle of current materials, you can avoid spending money on buying new packing supplies for every shipment. This leads to reduced expenses associated with packaging, which is important for businesses looking to boost their bottom line. Reusing materials improves the overall effectiveness and financial health of your shipping operations.

However, the impact of reusing packaging also applies to environmental factors because it is inherently sustainable. You can lessen the demand for more resources and the development of trash by avoiding the need to buy fresh materials for each shipment.

This reduction in waste production leads to lower waste disposal costs, which adds to the cost savings. It also fits in with eco-friendly practices, which are getting more and more significant in a world where consumers and businesses prioritize environmental concerns.

6.  Consolidate Packages

Combining multiple shipments headed to the exact location into one package can qualify for discounted shipping rates, saving money and optimizing space.

Businesses wanting to minimize costs and optimize shipping operations will find special value in this strategy. When shipments are grouped, the overall shipping costs are decreased because you only pay for one package rather than several separate ones. This not only promotes financial efficiency but also increases your company’s competitiveness by allowing you to offer more affordable shipping options to customers.

Space optimization is another benefit of consolidation. Combining multiple shipments into a single package reduces the total space required for transporting these items. This can significantly impact the efficient use of storage and transportation space, resulting in streamlined logistics and reduced costs.

While the exact delivery process may vary depending on the shipping company or service chosen by the seller, it generally follows the typical delivery route to the specified location. Thus, the customer’s provided shipping address is the primary delivery point.

7.  Optimize Dimensional Weight Packaging

Efficiently utilize packaging that matches your items’ size to minimize excess dimensions. By choosing packaging materials that closely align with the dimensions of your products, you can avoid the unnecessary expense associated with transporting excess space and weight. This results in more cost-effective shipping rates, which is an important factor to consider when trying to minimize your delivery costs and keep your advantage in the eCommerce market.

Use fillers and customized packaging as necessary to increase the effectiveness of your packaging. Fillers, such as packing peanuts or bubble wrap, help secure and protect items during transit, ensuring they reach their destination in optimal condition. Custom packaging that is made to fit the precise dimensions and shape of your products improves protection and makes better use of available space.

8.  Get Your Shipping Labels Online

Generating and printing shipping labels online saves time and offers real-time tracking capabilities. Online label services may also provide discounted postage rates and integrated shipping options while reducing paper waste.

9.  Weigh Your Packages Beforehand

Accurate postage costs prevent overpayment or unexpected fees. It helps select the right packaging, ensuring compliance with carrier regulations and a smooth shipping experience for you and your customers.

Let’s say you’re sending a package internationally, and the carrier has set restrictions on weight and size for efficient shipment. By accurately measuring and weighing your package, you can ensure it complies with these guidelines, preventing potential delays, surcharges, or issues during transit.

10. Negotiate Shipping Rates

Evaluate your shipping data, identify potential partners, and contact carrier representatives to negotiate better rates. Request a comprehensive rate review, compare proposals from different carriers, and monitor performance to ensure you’re getting the best deal.

Bonus Tip: Subscription Services

Consider subscription-based shipping services from carriers. They often offer discounts on shipping fees for regular or high-volume shipments, along with additional perks like package tracking, delivery guarantees, and simplified shipping processes. Subscribing can lead to significant savings and enhanced efficiency.

Key Takeaway

In 2023, saving on shipping costs is crucial for Canadian sellers. From choosing the right carrier to efficient packaging and negotiation, these strategies will help you optimize your shipping practices, reduce expenses, and stay competitive in the ever-changing shipping industry.

About the Author:

Diana leads the growth marketing initiatives at Stallion Express. As a personal trainer turned digital marketer, Diana is obsessed with equipping eCommerce entrepreneurs with everything they need to scale their online businesses. You can catch her doing yoga or hitting the tennis courts in her spare time.