Regardless of whether you are a business owner or someone looking to make a little extra cash through ecommerce, you are likely to face challenges with shipping to customers all over the globe. Not only does international shipping come with a slew of complications, it can also be extremely expensive. Here are some ways to cut shipping costs so as to increase your overall profit margins.
Tackle The Nitty Gritty
Before you start the shipping process, it is a must to familiarize yourself with the regulations and limitations imposed by different countries. Shipping packages internationally is often subject to plenty of constantly changing restrictions. You must be up to date with the current and authoritative measures, so as to prevent any unnecessary fines or delays.
International packages typically incur customs duties, which vary from one country to another and are levied by governments on imported goods. They are either specific or based on the value of the goods. For example, if you are shipping to Poland from the US, there are specific maximum weight restrictions and customs tariffs that must be paid should the package exceed a value of $50.
Restrictions can also change depending on the international shipping provider you choose, which can make or break the entire process. Work with reliable international shipping companies that have good reviews and high delivery service standards. Some factors to take into account include price comparison and extra costs, service quality, speed, insurance, and customer service. Do your research diligently, and you should be in good hands.
Calculations are key. International shipping costs should be meticulously and carefully calculated and have a cost breakdown inclusive of details like the cost of the product, packaging, shipping, handling charges, taxes, additional fees, and profit margin. After all, record keeping is a vital part of any business.
Reduce, Reuse, Recycle
Using the right packaging will help you save on materials, and in turn, general overhead expenses. Protecting fragile items in transit is of utmost importance, but one must be smart in choosing the right protective material that is both cost-saving and fitting for your brand. Shipping costs can be reduced by using protective materials that are lightweight, such as bubble wrap and air pillows. The lighter your package, the less it costs to ship.
Buying your supplies in bulk is another cost-saving method that will be beneficial in the long term. Taking advantage of volume discounts as you shop for boxes, poly mailers, or air pillows is a great way to cut down on shipping costs. It is also a good way to ensure that you are stocked up on packaging in various shapes and sizes, which will come in handy should a package be of the wrong dimensions due to changing demand or restrictions.
You will also save money on materials if you reduce the quantity of packaging used. Packing lightweight items in a large box will incur more costs than necessary, due to their larger dimensional weight and greater amount of space taken up. Overly large boxes also increase the risk of the product being damaged.
As a matter of fact, reducing excessive packaging also positively impacts the environment. In a Sustainable Packaging Study conducted by Packaging Digest and Sustainable Packaging Coalition, 92% of consumers acknowledged the importance of sustainability in packaging. As more and more customers make the switch to sustainable shopping, their preferences will be reflected in the companies they choose to purchase from.
You may not cut down on shipping costs by using eco-friendly packaging, but you will be saving money on the packing itself. If shipping costs are higher than expected, you should aim to cut costs in other aspects of the business. You do want to profit, don’t you?
Cut costs, all while reducing your carbon footprint and doing your part for the environment, by investing in recyclable shipping boxes and biodegradable styrofoam padding. There are also sustainable packaging material alternatives you can consider, like Kraft paper, a biodegradable, recyclable, and compostable material made of 100% virgin fiber paper, or solid bleached sulfate (SBS) paperboards, which are made from bleached virgin wood pulp. Compostable mailers as a plastic substitute are also growing in popularity.
Online shipping supplies can be reused and recycled. As both an online shopper and seller, the boxes and packaging you receive can be repurposed for your own packages. However, don’t forget to remove or cover the old shipping labels beforehand. We want to avoid as much confusion as we possibly can.
At the end of the day, lower international shipping costs are great for any business, no matter how small. Given that passing on the costs to your customers is nowhere near feasible, taking measures to lower expenses will help you make the most out of your business without having to deal with the exorbitant fees that come with shipping internationally.
