Resources for Small Business

How To Save Money While Shipping :- Guide for Online Sellers

Now that you have started selling online and managing your business, you would have come across the various challenges that running a E- Commerce business gets along with it. The biggest being logistics. Shipping itself is a very prominent part of the entire chain of E-Commerce industry and if used efficiently can turn into the game changer of your business. Many entrepreneurs who are selling online are not even aware of how they can save money just by altering very small things when it comes to shipping. Excessive packing, heavy weight material to pack, these in turn cost you more because the vehicle is weighed down by excessive weight and more fuel usage is done. Now that can burn a hole in your pocket. And obviously you do not want that. Do you? Also many online sellers  are not even aware that certain companies like FedEx  and other courier service providers like Aramex, Gati, Delhivery, etc have different slabs for different services that can be incorporated while sending shipments to reduce costs. For example FedEx basically has 3 types of shipments available. The Priority that has a 500gm slab, the Standard that has a 1Kg slab and finally the Surface Shipping (for huge bulky products). So say if you want to send something weighing 350gm then “Priority” slab makes more sense. But if you send something weighing 650gms by priority, you have to pay the amount of two slabs that is just the double. So why not choose standard and pay for just one slab. That was just a quick tip. Let us quickly jump to quick hacks for saving money while shipping for clients who are running an online business or are even planning to sell online so that they can save money because in the end the money counts!!

Save Money While Shipping by Using These Tips

1. Excessive packing is a strict NO NO

There is no need to  put a product in three different layers of cardboard or bubble wrap while shipping it. Your            product is not going on a war. The best example of the company that used this is PUMA. They shifted from boxes        for shoe delivery to smart “little clever bags”. So the weight of the shipment was brought down by a considerable          extent. However insignificant it appears but it makes a major difference in the long run.

Clever Little Bags By Puma To Save Money While Shipping Courtesy:

Clever Little Bags By Puma To Save Money While Shipping

2.  Try to dismantle bigger products

If in case you are shipping bulky materials like furniture or say computer, then it is better to dismantle a few                detachable pieces that can be easily put back. The logic behind this is say for example you have to send a table.            The weight of the table is 5kg but when you check for the volumetric weight of the table, “the difference is                Huge”. Just dismantling the table and packing it in the shipment will reduce the volume of it. (Volumetric weight = (Length* Breadth* Height)/ 5000 {air shipping})

Dismantling Big Shipments helps Save Money while Shipping

Dismantling Big Shipments helps Save Money while Shipping

3. Remove all the things that are unnecessary from shipment

Unnecessary huge paperwork, 10 different learning modules, warranty cards, etc do away with it. It’s a net savvy         world. Instead of putting bulk of papers into the shipment which trust me nobody would want to read. Just pass         them a CD drive with all necessary documentation. Saves both you and the customer from hassles of preserving           documents.

Do Away with Unnecessary paper work to Save Money While Shipping

Do Away with Unnecessary paper work to Save Money While Shipping

4.   Use lightweight containers

Use containers that can be collapsed, recycled, are lightweight, stack-able and convenient. Instead of big                        wooden boxes use plastic pallets and dividers.

5.  Consolidate all the shipments

You do know that companies like Flipkart, Amazon reduce your shipping costs if you order in bulk and                         consolidate  shipments? So basically if someone orders 10 things, it is better to send them all at once in a single             packet than  sending them one by one as separate shipments. Consolidating shipments might take a little more           time to sort but the returns are very profitable.  A little careful analysis might actually help you in finding out             which orders can be consolidated if they are to be sent on the same route. Also you will be saved from the hassles         of tracking so  many shipments.

Consolidate Shipments to Save Money While Shipping

Consolidate Shipments to Save Money While Shipping

That’s all for now folks. I’ll find some more hacks and keep you updated. If in case you find something more interesting, then you can also let us know as well. How do you ship your products? Have any interesting finding from your learning while shipping? Let us know!

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Divya Sharma Dixit

Divya Sharma Dixit

Divya Sharma Dixit: Electronics and Communication Graduate bitten by the StartUp Bug.
From being an Engineer to a Journalist to Business Development officer and now Marketing, she always is on her toes. She takes life as it comes.
Writing is her mode of relaxation.
Pretty active on Social Media, be it Facebook or Quora.

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  • Thanks Ubaid.

  • Hi Ubaid,

    Good point. We’ll write about handling returns in your logistics soon. Lookout on this space.

  • Sandeep Jindal

    Good one

    • Thanks for the compliment Sandeep. Do keep coming back.