FACTOR SHIPPING COSTS INTO PRODUCT PRICES
You can offset shipping costs by factoring them into the prices of your e-commerce business’s products. If a $40 product costs $4.50 to ship, consider selling it for $44.50. If a product costs $120 and costs $9 to ship, consider selling it for $129.
Of course, you don’t need to factor shipping costs into product prices if you charge customers the accurate amount for shipping. But if your online store offers free or discounted shipping, on the other hand, factoring shipping costs into product prices will save your e-commerce business money.
REQUEST LOCAL PICKUP
In the world of business, time is money. The sooner you get your packages into the hands of a courier, the better. If you spend 10 or more hours each week driving back and forth to a USPS office, it may reflect upon your e-commerce business’s profits. All that time spent driving to the USPS office, as well as waiting in line once you get there, could be better used for customer service, advertising and conversion optimization.
Couriers offer local pickup as a time-saving, and therefore cost-saving, alternative to manual drop-offs. For the USPS, you can schedule a pickup online by visiting this link
and completing the form. Both UPS and FexEx offer online pickup scheduling as well, which you can access at this link
(for UPS) and this link
(for FedEx), respectively.
PURCHASE SHIPPING INSURANCE FROM A THIRD PARTY
Insurance is always a smart investment when shipping packages to customers. If the courier loses or damages a package, it will reimburse you for the declared value. Without insurance, you’ll likely foot the bill for a lost or damaged package. Rather than purchasing shipping insurance directly from a courier, choose a third-party insurance provider.
There are over a dozen third-party providers of shipping insurance, most of which cover packages shipped through the USPS, UPS or FedEx. They use a similar value-based model to calculate the cost of insuring a package, with expensive packages costing more to insure than cheaper packages. With that said, third-party shipping insurance can cost up to 40 percent less than shipping insurance purchased from a courier. By purchasing shipping insurance from a third party, you’ll slash your e-commerce business’s shipping costs.