Four Methods for Reducing Small Business Shipping Costs

Written by Small Business Magazine on November 17, 2017. Posted in Broker software, Load board integration, Ltl shipments

Transport management solution

Small businesses often face unique challenges in the business industry. Shipping challenges especially can be difficult when you are just starting out. You do not qualify for the same volume discounts as businesses with larger number orders do. You aren?t able to fill shipping trucks with the full load, meaning you rely on others shipping prices and timelines. Fortunately, there are ways to overcome these small business shipping challenges.

Pass on shipping charges to the customer

Newer businesses sometimes pass on at least a part of the shipping charges. Depending on the type of product, some customers are willing to pay a shipping charge. If you can get a good manufacturing cost of your products, you can also offer a better product price to your customers. Cover a portion of the shipping and then pass on some of it to your customer. This shipping plan should be modified and reevaluated as the business increases and you should eventually work toward free shipping for customers. There are too many businesses offering free shipping today.

Combine shipping with other smaller businesses

One of the most common reasons for increased shipping costs for smaller businesses is because they are unable to fill full trucks. It is likely that other businesses in your area are having the same shipping troubles. Finding a business that specializes in managing LTL shipments can pair you with some of these smaller companies, thus giving you a more cost effective shipping cost. These comprehensive transportation management systems use freight management software to calculate the best shipping options. The LTL or less than truckload market is currently estimated at about $35 billion.

Implement a comprehensive transportation management systems program

Using an advanced comprehensive transportation management systems program ensures that you are always getting the best shipment rate. It uses features like shipment tracking integration and load boards to ensure that you are always getting the lowest rate possible. Keeping track of these constantly changing shipping costs and methods ensures that you are keeping your hard earned profits in your pocket. This advanced shipping program can also help you to monitor alternative shipping methods, although trucking is still the most common. In just 2013, trucking transported nearly 15 billion tons of cargo. The Bureau of Labor Statistics reports that by 2040, that number is expected to increase to 18.79 billion tons.

Increase your internet traffic sources

Although you do not want to expand too quickly, expanding your internet presence can help to also increase your customer base. The more customers that you have, the more shipping or freight management discounts you can qualify for. Combine your comprehensive transportation management systems with your internet marketing sources for the best shipping outcome. Think of this method as a long term goal. The internet is the easiest way to improve your customer numbers.

Are you looking for a way to increase your business profits by reducing your shipping costs? Smaller businesses often have a period of business time that has higher than average shipping costs. If you can make it through this starting out period, however, you can reduce your shipping costs and compete with other larger businesses.

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