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How Your Business Can Save Money on Delivery Costs

Customers are shopping online more frequently than ever before and that means that there’s more parcels being passed through depots around the country too. According to the Centre for Retail Research, online spending in the United States amounted to a massive $306.85 billion in 2014. This is predicted to reach $349.20 billion this year, an increase of 13.8%.

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Always Buy in Bulk

If you’ve ever wondered how companies selling low priced items, like used books or CDs, for just a few pennies on sites like Amazon can still be profitable, this is because they purchase discounted mail services from third-party companies. These act as middlemen and bulk-buy postage slots from the large courier services like TNT UK, which they then sell to the public. Dealing with these kinds of companies is typically done via an online auction, often hosted on the firm’s own website. Be aware that you won’t be dealing with the courier themselves here, but the middlemen instead who each have their own terms and conditions.

Sign up and become a member

Some of these couriers also offer their own membership service. This is their way of rewarding customers for their loyalty and incentivising you to keep working with them. For small businesses working on a tight budget, this has the potential to end up being a significant saving if the firm already offers competitive rates. You can typically expect discount of between 5-10%, depending on how much you spend. Use online comparison tools to find out which company offers the best rates and then compare their membership fees to see if the savings will be worthwhile.

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Use Recycled Packaging

Finally, one often under-utilised way businesses can save money shipping items is to use recycled packaging. While you might think that this could potentially leave a negative or unprofessional impression amongst customers, the reality is that people are now more conscious about how industries are negatively affecting the planet and are looking for ways to improve their own buying habits. In a 2013 survey, 71% of Americans admitted that they considered the environment when they shop, up from 66% in 2008. Showcasing your concern for these issues could end up attracting a new demographic to your business, and give your brand an advantage over competing companies.

Cutting out unnecessary costs is an unavoidable aspect of running a business. If dealing with couriers is a significant part of your business, it may be worthwhile to re-evaluate your current operations.

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