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Operating a small business can be challenging to keep costs low and profits high. Many expenses come with running any company, and freight is often one of the highest costs. Whether you’re an online seller, manufacturer, or wholesaler, your business will likely need to ship things at some point. The shipping cost can be so high for some companies that they lose money on every sale. Fortunately, there are ways to save money on freight no matter what sort of business you run. Whether you ship goods frequently or have one big shipment once in a while, these tips can help keep costs down and profits up.

Reduce package sizes

First, make sure that your packages aren’t too big. It’s an easy mistake for small business owners to use oversized shipping containers accidentally. Oversized boxes can lead to increased fuel costs and longer delivery times. There is no standardized measurement for small, medium, and large boxes, but you can find shipping container dimensions at most shipping supply stores. You can also refer to your shipper’s guide to find the right container size. Keep in mind that weight is often tied to volume. 

Use flat rate shipping when possible.

Another way to reduce the cost of shipping is by taking advantage of flat-rate shipping. This service is offered by shipping providers like UPS and FedEx and allows you to set a single price for any shipment. By setting a single price for different types of shipments, these companies can offer cheaper rates than if they calculated rates by weight. This means that you’ll be charged a single price, no matter what volume or size of the package you send. This can be helpful for shipments of different sizes and weights, as you can set a single rate for all of them. Flat rate shipping is available for domestic and international shipments and can help you keep costs down.

Work with freight brokers.

Freight brokers are businesses that help you find the best rates for shipping. They’re like travel agents for shipping and can help you find the most cost-effective ways to ship your goods. Some brokers even offer guaranteed rates, which can keep your costs down if rates increase. You can compare rates among different brokers to find the most cost-effective option. Freight brokers often have access to cheaper rates that aren’t available to the general public. Additionally, freight brokerages know the ins and outs of the shipping industry, which can help you save even more money.

Offer local delivery or collection.

If you’re shipping a small item, you might be able to save money by offering delivery or collection services. This service allows you to provide same-day delivery to customers within a certain radius. You can deliver the items yourself if it’s not too far from your location. The same applies to the collection too. Customers can make their way to you to collect their orders, saving you both on shipping costs.

Use lighter packing materials.

While you should always be careful to use packing materials that protect your shipments, you should also use the lightest materials possible. This will help keep your costs down, which is critical for small businesses that ship regularly. Check with your shipping provider if you’re unsure what materials to use. They can often recommend appropriate materials for your shipments.

Bottom line

Freight is a high cost for any business that ships items. Luckily, there are many ways to save money on freight. From reducing the size of your deliveries to finding the best rates, you can keep your costs low. It’s essential to keep these tips in mind when shipping goods. Following them can save freight money and ensure your business runs smoothly.