Shipping can be one of the biggest expenses for a business. In fact, for most businesses, freight cost is the number one fiscal challenge that is carves its way into the profit margins. In the old days, people would just buy a railroad and never have to worry about freight costs again, but these days, buying a rail line is blasphemously out of the question. Yet, whether you are shipping by ship, air, or rail – there are a number of ways to cut down your freight shipping costs and increase your profit margins. Here are 5 ways for businesses to reduce freight shipping costs.
- Don’t pay for air. Oftentimes, when businesses pack their items for delivery, they use packing material that has large air pockets to serve as cushions. However, if you use too many of these air pockets, like bubble wrap, you are essentially paying to ship air. Yet, if you reduce the space inside by adding one or two more items, you can not only save on freight, but also having more items will add more protection – because all you want to do is prevent products from banging against each other.
- Use thinner boxes. Oftentimes you can save money by cutting down the width of the box walls, which only adds more weight to the items you are shipping – you will also be spending more money. However, you can probably get away with shipping items in a box that has much thinner walls. Not only that, but you can also fit more items inside. The more space you have inside, and the less weight you have, the less your overall freight shipping rates will be. If you want to add more protection to the box, you could line it with foam, which is much lighter than cardboard and won’t add additional costs to the shipping rates.
- Use a bigger compartment for shipping little boxes. If you are shipping a lot of products in little boxes, the shipping company has a lot more to handle. However, if all of those boxes are going to one place, you can easily put them in a large cardboard or even wooden container, which can hugely cut down the logistical processing and thus the freight costs. The more you can fit in a larger box, the more you will save.
- Map out the shipping route. No matter if you are shipping by air or on the ground, you want to find the shortest and fastest way for your items to get there. If you have a private fleet, you can get the items to a certain destination or customer faster, which should reduce the amount of money you will have to pay. For instance, you don’t want to take a route that has a lot of mountains to climb over and you don’t want a flight path with a lot of wind resistance.
- Buy your own fleet of trucks. If you are a national or regional business and only have to ship items within a thousand to three thousand mile radius, you might be able to save a lot of money in the long run by purchasing a few delivery trucks. With the long-term savings, the trucks should pay for themselves in about three years.
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