Several years ago, my company shipped my books across the country. When I set shipping prices both on Amazon and on my own website, I sought just to cover my expenses. I thought that UPS would be less expensive than FedEx and more practical than the US Postal Service; and I set up an account with UPS.
Shortly after, I was contacted by a representative of UPS offering a discounted shipping plan with no minimums. I left my shipping prices intact and made additional profit as I was charging list shipping rates and paying discount rates.
For the smallest volume shippers, what I did can provide some additional profit.
If you do higher volumes, there is more you can do. First, do not equate cutting costs with cutting corners. Second, go through your entire shipping department. Gather invoices and review agreements with your shipping companies.
According to blogs at the Reveel Group, https://www.reveelgroup.com/blog/, the old practice of shipping orders in one larger box may be on the decline due UPS and FedEx increasing fees for oversized or overweight containers. Find optimal sizes for shipping most popular products and product combinations and review options at Uline or companies like it. Uline sends out a catalog every quarter that is between 500 and 1000 pages and has a multitude of sizes for boxes and packing materials.
The Reveel Group has a program they call Shipping Intelligence with three major features:
- Contract Analysis & Negotiation
- Invoice Auditing
- Reporting & Analysis
The website indicates that the company will consult with the business owner for free and that there are no fees if they do not generate savings. The goal of the Your Small Business Resource site is to help small business owners find quality information and resources. While we do not typically recommend companies, I certainly think the Reveel Group may be worth the phone call. There is no risk.
I will see if I can reprint a few of their blogs here.
The name of the topic is Building Profit through Shipping. Charging retail shipping rates while shipping at discount rates will boost profit. But as any business owner will tell you; any time you negotiate better deals and reduce costs, you will be increasing profit.