How to get the best shipping rates for your business

Small businesses often struggle to get the best shipping rates for their products. This is because they do not have the same purchasing power as larger companies.

However, there are a few things that small businesses can do to improve their chances of getting good shipping rates. In this article, we will discuss some of those things.

Prioritise multi-modal freight

Multi modal freight is cost-effective because it allows businesses to combine different transportation methods, such as trucking and rail, to get the best rates. This can save the business money on shipping costs and ensure that their products arrive at their destination on time.

Negotiate with a few shipping companies

Shipping rates can be a huge cost for businesses, so it's important to negotiate deals with a few dfferent companies. Comparing rates for similar services between different providers can help you find the best deal for your business.

Reduce the size of your packaging

Packaging can be a major expense for businesses, so it's important to find ways to reduce the size and weight of packages without sacrificing protection.

One way to do this is by using packaging that is sturdy yet lightweight. Additionally, it might be worth considering reducing the size of your products themselves whenever possible.

Purchase discounted shipping materials

There are a variety of materials used to ship goods, and each has its advantages and disadvantages. The most common shipping materials are cardboard, bubble wrap, and packing peanuts.

Cardboard is a good option for shipping lightweight items. It's strong and can be reused multiple times, but it's not very absorbent so it's not ideal for shipping fragile items.

Bubble wrap is a better option for shipping fragile items because it's very absorbent and provides a lot of protection. However, it's not as sturdy as cardboard and can sometimes rip or tear in transit.

Packing peanuts are ideal for shipping heavy items because they are lightweight and provide support and cushioning. With that being said in most cases they can only be used once.

To get the best shipping rates, you should purchase discounted shipping materials. You can find discounts on shipping materials by searching online and by purchasing in bulk quantities

Join a shipping alliance

One way to get better shipping rates is to join a shipping alliance. These are groups of companies that pool their resources to get better rates from shipping carriers.

Shipping consortiums can be found for both national and international shipping. Joining one of these groups can help you save a significant amount of money on your shipping costs.

Invest in third party insurance

The cost of shipping insurance can significantly reduce your profit margins. Moreover, if your business ships goods that are valuable or fragile, these costs can be even higher.

It might therefore be worth your while to invest in a third-party shipping insurance policy.

This type of policy is usually cheaper than purchasing insurance direct from the carrier, and any item shipped under such a policy will still be insured for damage or loss.

Find ways to reduce returns

Most businesses can identify opportunities to cut down on returns. If you do not address the reasons why your customers choose to return products, you could be missing out on a huge opportunity to reduce your shipping costs.

Try to make sure that all of your products have detailed and accurate descriptions and use high-quality images and videos to demonstrate them.

This ensures that customers will be more likely to order the correct product for their needs and will be less likely to ask for a return.

Getting better shipping rates is easy when you know how

Ultimately, shipping is one of the biggest expenses for businesses. It's important to get the best shipping rates possible to keep your business costs low and stay competitive.

In this article, we've outlined a few tips on how to get better shipping rates from your carriers. We hope you find these tips useful and that they help you save money on shipping.