How to Reduce Fulfillment and Shipping Costs

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When it comes to running your own eCommerce business, every dollar counts. Your ecommerce fulfillment costs shouldn’t be breaking the bank. Whether you’re distributing 1,000 orders a day or 1,000 a month, your eCommerce fulfillment needs to work effortlessly within your budget. Here's how to reduce your shipping and fulfillment costs in five ways.

1. Use Discounted Packaging

The cost of custom packaging can really add up when it comes to eCommerce fulfillment. In addition to paying for materials in your brand colors or with your company’s logo, you may also incur carrier costs as well. If your box exceeds certain dimensions, carriers like UPS and FedEx will charge you more. Using discounted packaging supplies like boxes, bubble wrap and even poly mailers can save money when shipping in bulk.

2. Ship from a Local Warehouse

The closer you are to your clients, the cheaper your shipping costs can be (and the quicker you can deliver via ground). Your carrier will not have to travel as far if you’re pulling products from a local warehouse to a local address. Companies like Rakuten Super Logistics leverage multiple fulfillment centers to help eCommerce retailers accelerate delivery time and reduce shipping costs.

3. Negotiate Rates

Some shipping carriers have discounts available based on volume. Best of all, you don’t have to ship tens of thousands of packages a month to be eligible for these discounts. If you’re trying to cut down on shipping costs, try negotiating with your carrier. There may even be a loyalty discount you are unaware of... you don’t know if you don’t negotiate!

4. Factor Shipping Costs into Customer Payment

Carriers have a variety of fees associated with shipping. Some of these include fuel charges, a signature from the recipient charge, and even Saturday delivery fees. Stop absorbing all of these extra costs. Instead, factor these into your customer’s final shipping cost. Alternatively, you’d be surprised that many customers don’t mind waiting a bit longer for cheaper shipping—give them the option to select a longer delivery window so they can pay less for shipping.

5. Prepay Carrier Fees

You can save up to 20% off your shipping costs through UPS and FedEx just by purchasing labels upfront. If you consistently ship orders containing the same weight or dimensions, this option would be an ideal choice to cut down on your costs. Buying upfront allows you to have a large supply of labels for future use while saving hundreds of dollars.

When it comes to successful shipping and fulfillment, the price can be everything. We know that shipping is a large cost of doing business, and it’s important you wisely spend every dollar you earn. Stop overspending on your shipping and fulfillment services. Rakuten Super Logistics offers clients competitive pricing and expert eCommerce fulfillment.

Rakuten Super Logistics (RSL) is a national leader in eCommerce order fulfillment and freight brokerage. RSL’s nationwide network of fulfillment centers allows leading eCommerce retailers to reduce shipping costs, improve order accuracy, decrease shipping times, and increase customer satisfaction. Contact us to request a quote and learn more about partnering with RSL to fulfill your eCommerce shipping needs. 

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