How to Lower Packaging and Shipping Cost

How to Lower Packaging and Shipping Cost

While cost of parcel shipping orders cannot be eliminated, it can be reduced and managed by aggressively re-evaluating and optimizing the shipping process.

Negotiate to get Discount Shipping Rate

• You are not too small to get a discount: Work with your FedEx, UPS, or DHL representative to get the best discount possible. Carriers will give discount over their standard rates even for customers with low shipment volume
• Get an even bigger discount: Designate one carrier as the primary carrier to get volume shipment discount on top of your existing negotiated rate

Automate Packaging Scheme & Reduce ShippersLabor Cost

• Reduce reliance on your “expert” packer by getting a software solution that will provide the optimized packaging scheme for an order
• Save significant labor costs associated with manual effort and time spent in selecting the optimal packaging box(es)

Reduce Dimensional Weight Pricing

• Actual weight or Dimensional weight pricing: Carriers charge larger of dimensional weight or actual weight for packages that are large in size but light in weight. If the shipping box/parcel size falls into dimensional weight category, it may be cheaper to ship the items in multiple boxes rather than in a single large box

Reduce Surcharges

• Avoid using over-size boxes: Only use shipping boxes that are standard size. Consider splitting orders into multiple boxes, if using one oversize box results in surcharges that exceed the cost of shipping order in multiple boxes
• Do not exceed Max weight: Make sure total weight per box does not exceed maximum weight
• Eliminate wrong address penalty: Use carrier provided online tools to verify shipping address

Use Hundredweight Pricing

• Per package or per pound pricing: If shipping multiple packages to same location and total shipment weight is greater than 100lbs for air or 150lbs for ground shipment, setup your FedEx/UPS/DHL account to receive hundredweight pricing. With hundredweight pricing you will be charged lesser of per package or per pound shipping cost

Order Shipment Cost Optimization (OSCO) Software, from Mozula Technologies, creates shipping solutions that reduce packaging and shipping costs identified above.