How to Get the Best Shipping Rates for Small Business

Believe it or not, USPS processes and delivers almost half a billion pieces of mail every single day. Add that number to the amount of mail that’s handled by competing companies and you begin to realize just how important shipping has become in the modern world.

If you’re a small business owner that relies on shipping to get your products to customers, working to find the cheapest shipping for small business rates could help you to amass the cash that you need to grow your company.

Here are some tips that can assist you in securing the best shipping rates so you can reliably deliver packages at great prices.

1. Weigh Your Options

The easiest way to find the cheapest shipping for small business rates that are out there is to compare and contrast what advertised rates local shippers are offering. The majority of major cities have access to four providers:

USPS

USPS is a government-run shipper that moves millions of parcels of mail. USPS is subsidized by the government and as such, tends to offer good rates for packages so long as they conform to their requirements.

USPS offers several shipping options that range from flat-rate boxes to certified mail which you can read more here about.

UPS

UPS is one of the largest private shippers in the world. The company is lauded for its reliability and outstanding employees. Business owners can typically find great rates through UPS. This is particularly true for businesses that ship through Amazon’s FBA program.

FedEx

If you’re looking for a private shipper that isn’t UPS, chances are you’ll end up talking to FedEx. FedEx can be pricier than UPS but they have a ton of locations and offer reliable services.

DHL

DHL is a European shipper that has broken into the United States market in a big way over the last decade. Their rates are on par with UPS and FedEx but they have a smaller footprint domestically which may be a problem depending on where you work.

2. Look for Discounts

Not blown away by the advertised prices that any shippers are offering? Try going on a shipper’s website to see if there are special discounts.

Shippers routinely run promotions for free packaging services, materials and a number of other things that can offset their rates.

3. Find Ways to Reduce Your Package’s Weight

The less your package weighs, the cheaper that it’s going to be to ship. While most company’s product weights are set in stone if there’s anything that you can do to reduce the amount of weight that you put in the mail, do it.

A few ounces worth of weight reduction could equal hundreds or even thousands of dollars in savings every year.

4. Negotiate Special Rates

Companies that send packages in high volumes get the cheapest shipping for small business rates by calling up a shipper’s headquarters and striking a special deal. While there are no guarantees when it comes to requesting special rates, you might be surprised to find how big of a discount you can get by trying.

5. Ditch Your Carrier’s Insurance Policy

Every reputable carrier offers some sort of insurance policy on the packages that they ship. Many even offer a standard policy of about $50.00 that you don’t have to pay extra for.

If your package requires a level of insurance that’s in excess of the free amount offered by your shipper, think twice before opting into one of your shipper’s premium polices. There is a very good chance that a third party insurer will protect your packages for a fraction of what USPS, UPS and other major shippers charge.

6. Pass Shipping Costs Onto Your Customers

Sometimes, no matter what you do, you can’t escape steep shipping rates. If shipping is eating too much of your bottom line, pass some of the burdens onto your customers.

In today’s market, free shipping is expected from online shoppers so you may need to pay your product’s prices to offset costs rather than outright asking for a shipping fee. Only you know what makes sense in your market but don’t be afraid to charge your customers more if your company needs additional support.

7. Keep Your Package’s Size, Standard

One of the easiest ways to run up your shipping costs is to ship packages that are awkwardly shaped. It’s important that you do everything that you can to make sure that your goods fit in standard-sized boxes, even if it means redesigning your product.

Believe us when we say that any amount of money that you spend to standardize your packaging will more than pay for itself in reduced shipping expenses.

8. Recycle Shipping Supplies

Depending on how small your company is, you might be able to get away with reusing boxes and materials that you receive in the mail for outgoing packages. Not only does this save you money but it’s also great for the environment.

As you grow, you’ll probably need to start leveraging branded boxes rather than recycled materials. For now, though, a little bit of recycling can go a long way for your bottom-line.

Getting the Cheapest Shipping for Small Business Rates Comes Down to Creatively and Persistence

The companies that enjoy the cheapest shipping for small business rates are the ones that don’t mind doing research, making phone calls and adjusting what it is that they’re sending out.

If you’re rigid in your approach to doing business, you’re going to have a hard time paying less than what you’re paying now for shipping. If you’re flexible, the sky is the limit.

For more stellar business tips that can put money in your pocket, read additional entrepreneurial-focused content on our blog!