lower shipping costs

How To Lower Shipping Costs And Maintain Happy Customers

An e-commerce store may have the best prices in their niche but fail to penetrate the international market because of high shipping costs which makes the product expensive. Therefore, to penetrate the international market, every online store has to develop strategies to lower shipping costs.

Look at these tips on how to lower shipping costs to maintain happy customers:

Negotiate With Multiple Carriers

Shipping companies give better rates for businesses that ship in high volumes. Hence, the more you ship, the better the rates. But small businesses can also have some negotiating power.

If you ship a large number of small packages, you can compare prices and negotiate for a lower rate. If for example, FedEx knows that UPS is vying for your business, you have a stronger negotiating power with them.

Educating Customers

Do you know that 60% of online customers abandon the cart just because they found shipping costs too high? This can be greatly reduced by educating the customer and reducing the process.

Recent research showed that 22% of merchants feature their shipping policy on their home page. This number should be higher. No customer wants to find unexpected costs during the checkout process.

Therefore, it’s best that they know it from the start so that it reduces cart abandonment. You may opt to factorize your shipping costs or even offer a shipping calculator.

Pick-Up Points

If besides the e-commerce store, you have a physical store, you may opt to offer pick up points for your customers. This would reduce costs as it scraps the shipping costs.

Therefore, you can give your clients the option to have their goods shipped or to pick the goods up from a specified location. This means you won’t lose them. You may also have a separate location away from your shop.

For example, if your shop is located in Dallas, Texas, you may opt to have a pickup point in Seattle, Washington so that you can ship goods together for all clients from Seattle. This would greatly reduce the shipping cost.

Fulfillment Center

Another effective way to reduce shipping costs would be to negotiate with fulfillment centers. Mostly, companies prefer to be faithful to one delivery vendor. Well, that is good but always look for others and compare terms.

You can speak to a sales rep of an existing fulfillment center and know of any discounts that you can take advantage of. The idea is to optimize every opportunity to maximize profit through reduced shipping costs.

Final Thoughts On How To Lower Shipping Costs

Shipping cost can be reduced even by small and medium e-commerce businesses. Your negotiating power lies in knowing the loopholes you can take advantage of and also how well you can do it.

Whereas high shipping costs put off customers, there are ways you can reduce them or even create awareness to reduce resistance. This way, customers won’t see shipping as a burden and prefer shops nearby.

In the spirit of complete transparency, please know that when you purchase anything through the links on our site, we may earn a small affiliate commission at no extra cost to you. Thank you for supporting the work we put into this site.