6 Secrets to Reduce Online Shipping Costs for Your Small Business

Reduce-Online-Shipping-Costs

One of the most cost-consuming expenses for small businesses lies in shipping. If your business sells physical products, you may find it challenging to reduce online shipping costs.

Over 28% of customers abandon their carts once they see the shipping amount for their products. To keep customers engaged in the checkout process, it is important to leverage your online shipping costs.

Shipping costs not only include the amount associated with shipping but also, the cost of supplies you receive for production. So how can small businesses that are starting out, reduce their shipping costs?

For starters:

1. Use a shipping calculator

A shipping calculator allows you to shift the decision of calculating shipping costs to your customers. Don’t worry, you will not lose them. On the contrary, a lot of businesses are making use of shipping calculators to promote transparency and clarity with their businesses. Ultimately, this helps customers understand why they are being charged a particular amount for their delivery area. Also, shipping calculators come useful when it comes to assessing the cost variation of the delivery area from the warehouse.

If you have multiple shipping partners, a shipping calculator can help calculate the exact delivery charges with each partner.

mojoXpress shipping calculation
Instamojo’s mojoXpress shipping calculator

2. Standard postal services

For small businesses that are starting out with shipping small quantities – it is best advised to opt for standard postal services like Indian Post to deliver products. The costs are low and help you control your logistics better. Figure out the postal service in your area that handles low-cost courier services.

Also read: Why your business needs a fast shipping partner! 

3. Prepaid shipping

Sometimes, shipping providers provide discounts and lower costs when the shipments are prepaid. With prepaid shipping, companies buy a bulk amount of labels and fix them to packages even before the orders come in.

4. Introduce Flat rate shipping

Flat rate shipping has great indirect value with regard to cutting down your shipping costs. Flat rate shipping means having a standard shipping charge no matter how big or small the orders are. This could get customers to order more to avail of maximum benefits from purchasing on your store. Besides this, flat rate shipping helps promote your business’s order size.

5. Recycle your packaging

Well, this is the perfect time to exercise your eco-friendly card. Packaging is an essential element of shipping and a smart way to reduce your online shipping costs. Reuse your packaging material from previously returned material and product packages to save some extra cash. Bubble wraps, shreds, polystyrene can be recycled and used again for packages. As a bonus, this reduces your garbage and helps the environment.

6. Get familiar with your online shipping reps

All major shipping carriers have representatives whose main job is to negotiate rates and help businesses understand the shipping process. These sales agents are crucial to running your shipping processes smoothly. So make sure you find the right ones who can help you get discounts and the best rates. Contact and request these representatives to keep you updated on different rates, pricing, and shipping rules.

Fortunately, we can be those sales representatives for you. If you have an online store with Instamojo, you can use mojoXpress, our very own shipping platform. With mojoXpress, our shipping partners come to your doorstep to pick up your package.

Read more: All you need to know about mojoXpress! 

Get your online business started on Instamojo today!


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