How to reduce shipping costs on eCommerce

Shipping costs is a crucial issue for any e-commerce company, regardless of its size.

Strategies to reduce shipping costs

Shipping costs are one of the factors that most impacts the online consumer’s purchasing decision.

Several studies have already proven that more than 50% of customers abandon their shopping cart when faced with high and unexpected shipping costs.

For this reason, studying ways to reduce shipping costs should be a priority for merchants and business owners.

If you’re looking for a solution, check out three strategies that can help offer lower shipping rates.

– How to avoid shopping cart abandonment in ecommerce

1. Educate your customers

When trying to reduce shipping costs for your business, our first piece of advice is to inform your customers about them.

A recent market research study states that only 22% of merchants display information about their shipping policy on their website’s homepage.

Remember that nothing irritates consumers more than encountering unexpected costs during the checkout process.

Therefore, if you are charging for shipping, make that information clear from the start, and offer a variety of delivery options.

– 5 ways to improve the checkout process 

Here’s a good idea of ​​what you can do:

• Shipping Calculator

The shipping calculator is the best way to inform in advance that there will be a shipping charge and what the amount will be.

To avoid problems and complaints, more and more companies are incorporating shipping calculators into their e-commerce homepages.

This provides transparency and clarity to the customer regarding the shipping costs for their region.

Shipping calculators also help the merchant, since they automatically calculate shipping costs, which change according to a variety of factors, such as the weight and dimensions of the product and the delivery area.

Companies specializing in e-commerce, such as Delivery365 app, provide this online quotation system to their clients. 

– How to calculate shipping costs for e-commerce   

2. Be practical when packing to reduce shipping costs

Since the cost of most shipping options is based on the size and weight of the product, do your best to keep your packaging as small as possible.

This will not only help you save on shipping costs, but also will prevent packaging costs from reducing your profit margin.

When choosing to buy the package and pack the product yourself, you have to be extremely careful, as you are charged based on its weight and dimensions.

– Packaging for delivery: learn how to choose the best one

Pay attention to these tips:

• When discussing the weight of a load, both the gross weight (kg) and the volumetric weight (m³) are used as references

The charge is based on the higher of the two values. The goal is to make the charge fairer — preventing very bulky but lightweight loads from having a low value and taking up a lot of space, thus preventing more goods from being shipped in the same vehicle, which is detrimental to everyone.

The packages prepared by shipping companies take this factor into account while also being tailored to the specific needs of your business and the security of your product.

• Packaging focused on functionality

Functional packaging focuses on minimizing package costs, reducing it to the smallest possible size.

They are simple, with a sole focus on shipping, and guarantee that your product will be delivered safely to its destination.

But if you’re starting your business and want to build your brand,simple packaging like that isn’t the best marketing strategy you can adopt.

Tip: To personalize your packaging without spending a lot, you can add a sticker with your company logo and include a thank-you note with the product.

See how you can reduce costs when packaging your products:

• Use the smallest box possible;
• Don’t overdo it with protective materials like styrofoam, paper, and bubble wrap;
• Consider shipping in mailboxes or lightweight packages, such as Tyvek bags.

– eCommerce Packaging: 9 Ideas to Delight Your Customers

• Look for good discounts

Keep an eye out for discounts on packaging materials if you’re planning on packing yourself.

Research suppliers of the materials you need and buy your products in bulk. These suppliers will likely also offer you more affordable solutions and efficient options for the storage and transport of your products.

3. Offer flat-rate shipping

Flat rate shipping is considered one of the best practices in ecommerce.

It means offering a standard shipping rate, regardless of the size of the customer’s order.

This is a very interesting option for small and medium-sized businesses that cannot offer free shipping but they want to attract the consumer with another economic delivery proposal.

How does this help reduce shipping costs?

Simply put, besides generating more sales for your store, a flat-rate shipping option can increase the average cost per order.

This happens because customers feel more satisfied not having to pay for shipping and are more confident in buying more.

Suggestion: To test if flat-rate shipping works for your store, offer it initially for the purchase of a specific product niche, which usually sells more.

Provided you have correctly calculated the best rate for your business, shipping costs will begin to balance out.

– Flat-rate shipping: advantages and disadvantages for e-commerce

Fast and secure delivery of packages should be a priority

As an online seller, it’s extremely important to remain competitive in the market.

Furthermore, as important as increasing profit margins is, it’s equally important to offer a superior level of customer experience.

You must optimize the process to reduce shipping costs without sacrificing quality and delivery speed, a key factor in customer satisfaction.

As a solution, business owners seek the service of delivery partners to assist and expedite the collection and delivery of orders, like the Delivery365 app.

Ecommerce platform, the company has tracking technology, its own online shipping calculation system, and a database of hundreds of registered delivery drivers.

A true revolution in the way deliveries are made, visit our website, check out our solutions and ensure the best delivery service for your e-commerce business.