Freight Cost Charges – How to Cut Down On Shipping Costs?

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If you're selling products online to overseas markets, you definitely have to budget for the shipping rates involved to send your goods. Like all other overhead costs, the best way to maximize your net profits is to do whatever possible to minimize what you’re spending on shipping. 

However, do be careful in how you cut down these costs as you don’t want your customers’ experience with your online shop to suffer as a result. So what are some of the best ways to reduce freight costs that won’t affect returning customer rates? 

5 freight cost reduction ideas to boost profit margins

If you’d like to get the best bang for your buck and maximize your profit margins, consider the following five ways to help reduce freight costs.

1. Revise your packaging methods

Shipping costs are calculated by how far away the delivery destination is as well as the weight and dimensions of the package itself. While you can’t really do much about the delivery destination, you can make changes to the package’s weight and size.

There are a few options to help effectively reduce both the weight and dimensions:

  • Custom-designed packaging: For any products that are hot sellers, it may well be worth getting customized packaging made up for them. While this can cost a bit upfront, you may find it pays for itself quite quickly.

  • Lightweight packaging alternatives: Opting for a combination of corrugated boxes and lighter packing materials like bubble wrap or air pillows will most definitely reduce overall weight.

Remember that any minor reduction in weight and size adds up a lot over time, which can greatly reduce your shipping costs.

2. Take out insurance

When you’re selling higher-value items, taking out shipping insurance is an absolute must as this will cover you against any unexpected loss, theft, or damage before your package reaches its destination. You’re not only reimbursed for the item and shipping charges, but your otherwise-affected customer’s experience will also still remain a positive one.

According to Project 44’s research, it states that 84% of shoppers wouldn’t return to shop after just one negative experience, you can understand the importance of ensuring a fantastic purchasing journey for every customer.

3. Search for discount supplies 

It might sound a little obvious, but there are often sales on packaging supplies, so be sure to keep an eye out for the latest discounts on Amazon, eBay, and other outlets to help reduce shipping costs.

4. Pre-pay for low cost shipping

If you buy several pre-paid shipping labels at the same time, the freight rates you pay are reduced. This is ideal in situations where you know that weights and dimensions being sent out from your business are identical. For example, you’re an e-commerce business selling high volume products such as soap and shampoo.

5. Find a top-quality delivery partner

When you put your faith into a less-than-reliable shipping service, you will most likely encounter problems such as constant mis-delivering, damaged, or even lost packages. Going with a quality delivery partner means your freight charges will reduce because the items you’re shipping will actually arrive at their destination on time and in one piece. At DHL Express, we offer different fast delivery services — Same Day, Time-Sensitive and Day-Sensitive – to further expand your customers choices so they can feel in control. 

Will freight shipping costs eventually go down?

Unfortunately, it’s impossible to predict where freight rates will be, even six months from now. But there are most certainly reliable, low cost shipping companies for businesses available that work hard to keep rates as constant as possible. Create a DHL Express account with us and reduce your shipping costs today!