All business owners know that profits are just as quickly lost to seemingly never-ending cost increases. It can be tough to hold onto a specific margin, especially when you’re trying to keep your business competitive.
The only solution to this problem is to lower costs and raise revenue – but that can sometimes be much easier said than done.
One area to examine closer is shipping – shipping costs and shipping-related costs can accumulate faster than you can blink, which is why you need to follow these five tips below:
1. Supplier Relationships
During the COVID-19 pandemic, practically every industry took a massive knock. Businesses all realized that unless they worked together on some level, they might not have been able to navigate through such murky and unchartered waters. Businesses banded together, and collaborations blossomed all around.
Just because the pandemic is under control doesn’t mean you should neglect the relationships you have built with your suppliers. A successful business is predicated on good communication and great supplier relationships.
The better your relationships are, the better the pricing deals are, and the more chance you will have to negotiate successfully.
2. Shop Around
If you’re in the drop-shipping business, don’t be shy to shop around. Supplier diversification can coexist even with long-standing suppliers. Negotiate product rates, especially if your business focuses on bulk purchases.
If you have easier access to more products, you can lessen the waiting time for orders to be delivered to customers – improving customer relations and boosting sales.
Alternatively, find the best finance option for your business and grow your shipping department.
3. Negotiate Rates
Supplier relationships are important, especially when it comes to shipping partnerships, but that doesn’t mean you can’t work on pricing together. Negotiating is part of business; your vendors understand that.
Do some research and find reputable couriers like californiacourierservices.com to partner with, they can help get you the best shipping deals based on the size, weight, and volume of the orders you need shipped.
4. Streamline Processes
With delivery and shipping – two elements matter the most: speed and cost. Your customers demand speedy yet affordable options, and let’s face it – the competition is fierce!
The faster and cheaper you can move orders, the better.
Look at ways to streamline your workflow by examining your customer journey from start to finish. Most companies find multiple admin hitches in their process flow, but these can get reduced by using the correct software.
5. Free Shipping Rules
If your business offers free shipping with every order, the associated shipping costs will skyrocket unless you move high volumes. For small businesses and those just starting, consider only implementing free shipping for orders over a specified value.
Sure, your customers may be able to find a similar product somewhere else with free delivery but offering that kind of free service without building it into your product cost can be dangerous.
Once your business has grown and is more established, you can look at building shipping into the retail price.
It is easy to get bogged down by shipping, but now that you know how to regain control of your business – what are you waiting for? Implement the innovative business solutions above, and your profits will soar in no time!