Intro: Stats about shipping costs and customers’ expectations
Today’s logistics landscape is more challenging than ever. Customer expectations are at an all-time high, and despite a general understanding of higher costs, they still expect free or cheap shipping options and may base their buying decisions on that.
According to recent data, 80% of consumers want same-day shipping. 61% of online shoppers want their goods delivered within three hours of purchase. 61.8% consider shipping costs a critical factor in the buying decision, and 73% chose not to purchase or abandoned their cart because of shipping costs.
While every company desires to give the customer what they want, offering free shipping can easily cut into profits. Finding ways to reduce transportation costs is a great place to start, and we’ve got some actionable tips to help you achieve this.
6 Ways to Reduce Transportation Costs
1. Negotiate transportation rates and customs costs in advance
Establishing a relationship with a logistics partner opens up opportunities to negotiate transportation and customs costs. Even if you are shipping low volumes, working with a 3PL gives you access to bulk rates that wouldn’t be possible otherwise.
2. Avoid merchandise damage costs with adequate insurance coverage
Insuring your shipments is crucial, but you might be paying a premium if you do this through the carrier. Research third-party providers to find the best possible deal as it can save you up to 60% over a major carrier.
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3. Compare rates, delivery time, and reliability
Some shipments are time-sensitive, and others, not so much. You can reduce transportation costs by optimizing shipping modes or using a multi-modal approach. A trusted logistics partner can help you obtain the best possible rates and delivery times according to your precise needs.
4. Reduce package size and weight
Shipping costs are greatly affected by the size and weight of your package. Look for ways to reduce your packaging, if possible, by packing your goods in smaller boxes and minimizing the packaging materials used. If most of what you’re shipping are similar items, custom packaging and palletization might save you a lot in the long run.
5. Buy shipping supplies in bulk
Instead of buying shipping materials from a retail store, purchase in bulk directly from the manufacturer. Depending on what you need, you might even be able to get some packaging for free. Big companies like FedEx and UPS offer some free items, and your savings can add up quickly.
6. Trust your freight forwarder to handle the whole process
Working with a trusted freight forwarder like DTS World Cargo ensures the best possible pricing on everything from packaging to shipping and customs clearance. Our experienced team is dedicated to providing you with reliable, predictable options and best-in-class customer service, giving you one less thing to worry about so you can focus on what you do best.