Stability and staying power are always high on every business’s list of priorities, and this is more true now than ever. In an era of fluctuating and ever increasing shipping costs, now is the time to reduce your expenses by getting the best rates on freight and shipping services.

Not sure where to start? We’ve put together a list of the ultimate tips you need to learn how to save money on shipping services in Canada.

Factors that influence freight shipping costs

Starting your own eCommerce business comes with considerable startup costs, and shipping is one that your business will continue to incur– and it can really eat into your profit margins. The following factors influence shipping costs:

Speed of delivery
The number of shipping zones that the shipment travels through
The product's weight and size, as well as its packaging
Shipping insurance 
Package tracking and confirmation of delivery

That's a lot to think about. But did you know that with a little work, you may be able to cut your shipping expenditures in half?

Whether you prefer local or online shipping services, here are 8 tips to get you on the road to saving money as a small business.

8 Tips to Help You Save on Shipping Services

1. Negotiate the rates of shipping services 

Many small eCommerce companies believe they don't ship enough to be eligible for carrier discounts. But you don't have to ship large volumes like Amazon to get lower rates! If you make fewer than 100 shipments per month, you can still negotiate a discount with your carrier by calling their online shipping services department and chatting with a representative about your business. Make sure you or your shipping manager are aware of your figures, including shipment demands, volume, and estimates to get the best rate your carrier can offer.

2. Offer store pickup– the easy way to save on shipping services 

Your local customers may prefer to drive to a physical store to avoid paying a delivery fee (and receive their orders sooner). A store pickup service can also help you save time and resources by reducing the amount of time and materials you need to pack and ship orders. If possible, allow customers to buy or reserve products online and pick them up at your store.

Shipping-Services

3. Include shipping costs in the pricing structure 

Another way to save money on shipping is to change your pricing structure to incorporate the average cost of shipping an item, or even a percentage of it. Small price increases spread across your inventory can also help you avoid incurring additional delivery-related overhead costs

4. Use free shipping as a motivator 

According to current research, 79% of consumers are more likely to purchase online for free delivery, and 75% expect free shipping for orders of $50 or less, according to another poll. While this $50 amount may not be right for your company, you can still provide free delivery if your customer reaches a certain threshold. Appropriate pricing may also encourage customers to buy more items in order to qualify for free shipping.

5. Work with shipping vendors directly 

If you can't get a good bargain from a big-name logistics company, you might be able to get a better offer from a local or regional shipping company. Look for local delivery service providers to see if you can form partnerships that save you money. While there’s no guarantee you'll be able to get better prices, it never hurts to inquire! And if you need budget-friendly and hassle-free shipping services, we at eShipper can help.

6.Make use of coordinated delivery services

Brands like eShipper commonly partner with the leading parcel companies for coordinated shipping services. This is when a participating brand initiates and transports a shipment before transferring it to a local post office for final delivery. Although these coordinated services take longer to arrive, they are often less expensive than conventional shipping.

7. Use repurposed packaging materials

Packing materials may not appear to be a significant expenditure, but there are many free shipping resources available. You can save money by using recycled materials like cardboard boxes, shredded paper, or even reused delivery crates instead of buying new packaging supplies. You might be able to get recycled shipping material for safe delivery by working with an inventory provider, a manufacturer, or businesses like grocery stores.

8. Use a postage meter and scale

Scales and meters for postage weigh shipments and apply the correct amount of postage required for transit. An in-house postage scale and meter may save you time while also preventing you from overpaying for postage and having to guess the weight of your packages.

You’re Ready to Rock!

Online Shipping Services

Whether you’re using local or online shipping services, you can significantly cut your costs in a number of ways. And if you’d like to take your savings further, a shipping partner can completely change how you run your business. 

For affordable shipping services in Canada, eShipper has got you covered. Our growing range of shipping services in Canada will help you save time and money, as well as take the hassle out of shipping and fulfillment. Contact us now to get started.

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Shipping Strategy 2022
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