5 Ways to Reduce Shipping Costs for Small Businesses

People can now buy anything they want from anywhere in the world while sitting at home because of the increased usage of technology and globalization. Therefore, there are several options for producers of goods and services to advertise their items on various websites. Still, most businesses believe shipping to be quite expensive, given that even e-commerce has grown significantly over the past few years.

Therefore, the company's profitability may suffer as a result of the increase in the shipping cost. Consequently, it's crucial to understand how to lower shipping costs for small businesses. This article has provided numerous solutions for small business owners to cut costs.

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What is the shipping cost ?

Small business operations can be challenging at first since there are countless tasks to balance without compromising profitability. Shipping cost is one factor in financial terms which cannot be disregarded. Their optimization is highly challenging because there is no substitute for it, and to make matters worse, most carriers tend to revise their rates annually.

What elements contribute to the overall shipping cost?

Delivery time


Some customers will ask for same-day deliveries when placing an order, while others are comfortable waiting for the standard 6-7 day delivery time. Therefore, urgent pickups demand active monitoring of their status, which increases the effort and cost involved. Therefore, many businesses give their consumers the option of choosing between fast or standard shipment so that they may prioritize product delivery and adequately manage their shipping costs.

Weight of the package

Because different things that consumers order have different weights, the package's weight is taken into account when determining the shipping rates. In addition, the package's total weight includes both the product's weight and the package's weight, so the bulkier the thing, the higher the cost. Here is a quick tip from Heliotherapy Institute: if you want to reduce the weight of the packaging for skincare products, try using lightweight materials and redesigning the packaging to make it more effective, like removing unnecessary packaging components.

Shipment cost

Shipment cost is the entire shipping process. It merely denotes the location of the items' pickup, transportation, and delivery, which is also taken into account when calculating the shipping costs. In addition, the platforms allow users to view the delivery cost of online purchases by simply entering their zip code.

Docshipper note: Everyone must pass through customs like they would when entering any other country, including Malaysia. DocShipper recommends using a Malaysian customs agent for better service. Do not be reluctant to contact us.

Size of the package

A package's length, width, and depth, or L x W x D, always represent the size. It is comparable to the package's weight, so the larger your item is packaged, the more expensive your shipment will be. When determining the shipping price, the size of what you ship matters more than the weight. As a result, the business should be aware of how to optimize shipping for the products they sell.

Additional handling charges

Several breakable items must be handled carefully during transportation to prevent damage. Therefore, sometimes these expenses that guarantee door-to-door protection are unavoidable. However, to avoid unnecessarily paying this surcharge, the companies must work on it while selecting the appropriate packaging.

What can companies do to reduce the shipping cost?

Negotiating a better price

 Small business owners could encounter issues because shipping charges are volume-based; the bigger the volume, the lower the price, leaving little room for negotiation on the part of the small business owner. Therefore, finding the best local carrier that meets your needs and is less expensive becomes crucial rather than simply using the first shipping company you come across.

 Opting 3rd party shipping insurance

 Shipping insurance is essential since, among other things, the item may occasionally go missing or break. Therefore, most businesses opt for shipping insurance. Still, freight insurance is more expensive when purchased directly from a carrier partner. Hence, enterprises choose shipping insurance through a third party, which is less costly and results in a considerable cost reduction of over 50%.

Sometimes small businesses can also opt to deliver by themselves by owning the best truck. For instance, Tata signa 3518 bs6 price is reasonable, which will help in fast deliveries and work efficiently.

Advice Docshipper : It is not uncommon for you to pay a sizable amount in additional taxes after your import is complete. We advise you to educate yourself on all taxes. For further information, get in touch with Docshipper.

Multiple order and single package

 The small business operator can utilize one huge, hefty box to pack the product for shipment rather than several tiny boxes with single products because many customers order many products in a single purchase. One of the things that business owners do is offer discounts to customers who order additional products, allowing them to combine their orders rather than packing just a single one.

Use small packing boxes

 Whenever you pack something, make sure it's a little bit bigger than the actual item so that there aren't as many packaging materials needed to keep it safe, which will eventually reduce the shipping cost. According to FedEx's Asmus, "Truly, the problem is not how much anything weighs, but how much space it takes up." Therefore, a larger box will take up more space in the delivery van, while a smaller box will cost less.

DocShipper Advice : You need someone to take care of your goods shipment ? Please complete our shipping quote form, and one of our professionals will respond to you within 24 hours.

Make the packages lighter

Even though the smaller business owner cannot reduce the weight of the ordered item, the small business can ensure that there is only the bare minimum of packaging so that the package's overall weight is decreased. To accomplish this, lightweight packing materials, such as air pillows, can be utilized to protect the objects. In addition, small businesses can also use light boxes to deliver their product. Nowadays, many businesses load unbreakable and hard things with plastic bags rather than heavy boxes.


Being a small business owner, many owners are confused about how to lower shipping costs. As a result, this post has discussed some strategies that will enable you to reduce your shipping costs while also boosting your profitability significantly. In addition, it's critical to remember that shipping prices are subject to change. Thus it's vital to update the estimate periodically.

Author Bio

Tabish Khalid works as the Digital Marketer for MarkhorWear. He develops and implements digital strategies for Markhor Wear, along with aligning business goals with digital marketing activities. He actively contributes articles related to fashion, ecommerce, digital marketing, and content marketing.

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