Shipping is the backbone of international commerce. It is estimated that 80% of the world’s trade is carried by sea. However, despite that, there’s still limited competition as a few heavyweights dominate the market.
For businesses, cutting down on your international shipping costs could save you a fortune. It could also prevent you from passing these costs onto your customers.
Here are the best ways to get the most affordable rates on company like FlagShip.
Choose Ground Shipping
Ground shipping is the cheapest yet slowest option for international shipping. For your U.S. customers, being able to offer low-cost shipping could act as a major selling point for your business.
Studies have shown that 28% of customers will abandon their carts if they encounter unexpectedly high shipping costs.
Opting for ground shipping can drive down these costs.
Invest in Shipping Scales
Margins are small in the shipping business. A single gram or centimeter could send your packages into a higher pricing bracket.
Invest in some professional shipping scales to get an idea of what you should be paying. It could even indicate that you need to cut down on your packaging to obtain more affordable shipping rates.
Be Selective with Flat-Rate Shipping
Most companies now offer some form of business flat-rate shipping service. While most companies will not find much value from them, if you ship heavier items, it is a more cost-effective way of sending your goods.
Use flat-rate shipping exclusively for your heavier items and it could save you a huge amount on shipping costs.
Buy Supplies in Bulk
Even if you are not shipping a significant volume of goods just yet, buying supplies in bulk could be the most economical choice in the long term. Retail prices on packing supplies are significantly higher than wholesale purchasing.
Purchasing packing supplies from wholesalers, or from the shipping company itself, will reduce the average per package cost of international shipping.
Shipping is a highly competitive business, yet it is surprising just how many international businesses refuse to spend the time shopping around. There are deals to be found and there is no harm in switching companies when the costs get high.
If you are shipping any amount of volume, it is also a good idea to negotiate with the shipping company. Do not be afraid and do not be intimidated by this. The worst they can say is no.
Generally, the more packages you ship the more bargaining power you have.
Offering free or reduced shipping to your customers is a smart business move. Customers are increasingly expecting it, particularly since Amazon went mainstream. However, free shipping comes directly out of your profits.
Make sure you take the time to do your research. Even cutting your shipping costs by a few cents per package can really add up when volume is taken into account.
Do you have any other tips for getting the best international rates on business shipping?