Shipping costs can be a major challenge for online businesses, especially those managing large inventories and striving for growth.
For Freestyle Software clients using M.O.M. (Multichannel Order Management), reducing these costs can be a game-changer. In this blog, we’ll explore actionable strategies to help streamline shipping expenses while maintaining excellent customer service.
1. Optimize Your Packaging
Using the right-sized packaging can significantly cut shipping costs. Oversized boxes result in higher dimensional weight charges, even for lightweight items. Here’s what you can do:
- Right-Size Packaging: Choose boxes that closely match the dimensions of your products.
- Use Lightweight Materials: Opt for eco-friendly, lightweight packing materials to save on weight-based fees.
- Invest in Custom Packaging: If you frequently ship specific items, custom packaging tailored to their dimensions can save both money and material.
2. Negotiate Carrier Rates
If you ship in high volumes, most carriers are willing to offer discounts. Negotiating rates is one of the most effective ways to lower costs.
- Compare Carriers: Shop around to find the best base rates and discounts.
- Leverage Discounts: Some carriers offer lower rates for small businesses or those with frequent shipments.
- Partner Programs: Freestyle’s M.O.M. integrates with major carriers, making it easy to access exclusive discounts and compare rates in one place.
3. Batch and Consolidate Orders
Shipping multiple items to the same customer? Consolidate them into one shipment to save on costs.
- Batch Processing in M.O.M.: Use M.O.M.’s batch shipping functionality to group orders efficiently.
- Consider Shipping Zones: If possible, consolidate orders to customers in similar locations for discounted regional shipping rates.
4. Offer Flat-Rate or Free Shipping Strategically
Flat-rate or free shipping options appeal to customers, but they don’t have to break your budget.
- Set Minimum Purchase Requirements: Encourage customers to spend more to qualify for free shipping.
- Use Flat-Rate Shipping Boxes: USPS and other carriers offer flat-rate boxes that allow you to ship items at a consistent price.
- Analyze Profit Margins: Ensure your shipping promotions don’t eat into profits. M.O.M.’s reporting tools can help you track margins in real-time.
5. Use a Shipping Zone Strategy
Shipping costs often vary by region. Focus on optimizing your approach based on zones.
- Split Inventory Across Warehouses: Store products closer to your key customer bases to reduce zone-related fees.
- Consider Regional Carriers: These carriers often offer lower rates for local deliveries compared to national carriers.
6. Automate and Streamline Processes
Freestyle Software’s M.O.M. helps reduce errors and improve efficiency by automating many aspects of the shipping process.
- Automated Label Printing: Print carrier-compliant labels directly from the platform to save time and reduce errors.
- Real-Time Shipping Rate Comparisons: Select the most cost-effective carrier for each order based on real-time rate comparisons.
- Inventory Management: Track stock levels across channels to avoid overstocking or unnecessary warehousing fees.
7. Take Advantage of M.O.M.’s Add-Ons
Freestyle Software clients can enhance their shipping workflows with additional modules and tools:
- SiteLINK Integration: Streamline shipping for online orders placed through your SiteLINK store.
- Carrier Modules: Add carrier-specific modules to access specialized features or discounted rates.
8. Monitor and Reevaluate Regularly
Shipping costs aren’t static, so you should review your strategy regularly.
- Analyze Metrics: Use M.O.M. to monitor shipping costs and identify trends or areas for improvement.
- Customer Feedback: Ask customers about delivery times and packaging quality to ensure cost-cutting doesn’t compromise satisfaction.
- Reassess Carriers: Periodically compare carriers to ensure you’re getting the best rates.
Conclusion
Reducing shipping costs is critical to staying competitive in eCommerce. With tools like Freestyle’s M.O.M., businesses can streamline operations, optimize their shipping strategies, and focus on growth. By following these tips, you can save money while keeping your customers happy.
