September 13, 2023

In today's business sphere, optimizing shipping costs is paramount. Optimizing your shipping costs helps you keep your profit margins high. Moreover, optimizing shipping keeps your business competitive.

There are many ways that you can keep your shipping costs low. PostalAnnex is a trusted shipping company that aims to help you optimize your packing and shipping costs.

  1. Optimize Product Packaging

    Optimizing product packaging is one solution you can utilize to try and reduce shipping costs. This cost-saving strategy is simple — you focus on reducing the expenses you spend on packing your products.

    When done right, packaging optimization can reduce shipping costs. Besides space efficiency, product packaging optimization ensures you use just the right raw materials. You make more packs from a few raw materials. No wasting material making oversized packages. How do you optimize product packaging? 

    There are many ways you can optimize product packaging. The most effective ways include:

    • Designing boxes and mailers to reduce extra space and fit items snugly
    • Automating the packing process to select the optimal box size for each product
    • Maximizing your shipping density by packing as many products as you can fit in a single box
  2. Minimize Damage and Returns

    Damages and returns can significantly increase your shipping and packaging budget. The damages and returns demand that you spend extra resources on shipping and packaging. These costs add up quickly if your business experiences frequent returns.

    Thus, reducing returns and damages shouldn't miss on your efforts to optimize shipping costs. Again, there are many ways to minimize damages and returns. For one, you should use specialized packing for your products. 

    For instance, if you handle delicate materials, ensure your packs have enough cushioning. Such packages will absorb excess impact during transit. You can also use void fillers for enhanced protection.

    In the bargain, you can keep returns and damages low using the following tips:

    • Choose the correct box size to reduce movement inside packages
    • Use a reliable carrier with shipping insurance
    • Make sure you ship the exact products your customers order
    • Improve your product descriptions to give customers a clear picture of what they are buying
    • Avoid shipping damaged goods
    • Use customer feedback to address issues that increase returns
  3. Calculate Shipping Costs

    Calculating your shipping costs should be another top priority when looking to reduce shipping costs. The calculations help you adjust your shipping rates to cover every expense.

    Without the calculations, you could undercharge customers for shipping. In turn, your business will absorb the excess shipping costs, reducing your profit margins.

    For this reason, you should keep track of your shipping costs, and adjust rates accordingly. Make sure you capture the following easy-to-overlook expenses.

    • Weekend Rates. When calculating shipping costs, never ignore weekend rates. Include all the extra charges that may apply when shipping over the weekends.
    • Surcharges. Your calculations should include all surcharges like residential delivery fees. You should also include expedited shipping and remote area surcharges.
    • Signature Fees. Assuming you ship valuable products, factor in signature fees when calculating shipping costs.
    • Tracking Confirmation. Never overlook tracking confirmation expenses when calculating shipping costs. This service often attracts extra costs that can affect your bottom lines.
    • Insurance. Shipping insurance is a costly undertaking. As such, you should include it in your shipping expenses so you recover it from customers.

Optimize Shipping Cost With PostalAnnex

When it comes to optimizing your shipping costs, PostalAnnex is your reliable partner. We offer a comprehensive range of packing solutions, so you can select the one that fits the needs of your shipments. Moreover, we help pack each item to minimize the risks of damage and costly returns.

Find a Postal Annex location near you, and learn more ways to optimize shipping costs.