How can you save on courier costs?
Courier costs can be a major factor for all online businesses. The amount you spend on shipping (including both packaging materials and shipping fees) can eat into your profit margins and impact your cashflow. Here’s how to save on courier costs with Bob Go by avoiding five common mistakes.
Image courtesy of Karolina Kaboompics. Published on: May 28th, 2020 Source: Pexel.com
Mistake 1: Using too much packaging
Courier costs are calculated using both the weight and dimensions of each package to arrive at the volumetric weight (this is why large, light packages can sometimes cost more to ship than smaller, heavier ones). Using excess packaging increases the amount you spend on materials, but also your courier costs, by making items larger and heavier and bumping up volumetric weight and costs.
Other factors to consider – using too much packaging isn’t very green, and small items in over-sized boxes will rattle around and could get damaged; snug packages are safer. Look out for strong yet lightweight packing materials such as corrugated cardboard that are designed with online sellers in mind.
Insider tip: re-use shipping boxes that you’ve received yourself to reduce your costs and your carbon footprint.
Mistake 2: Inaccurate estimates
Don’t simply guess the weight of each item you ship – use a tape measure and scales to accurately calculate its dimensions and mass, so that you get an accurate cost estimate (and avoid overpaying as well as any excess charges that can result from underpaying). If you regularly ship the same items, set up a custom item on Bob Go to save you time on each occasion. You can also then bulk buy the boxes or poly mailers that you use most often, and get economies of scale that way.
Mistake 3: Poor order management
It can be hard to save on courier costs without the right order management tools, and that’s where Bob Go can really help. Consolidating multiple orders for the same customer reduces your shipping costs, and makes purchases cheaper for your customers. The opposite approach can also sometimes work – splitting large orders into multiple shipments can reduce weights and costs. With our quick and easy online calculators, you will soon see which method works best for you, and for your customers.
Mistake 4: Not being flexible
There are lots of options when it comes to connecting your customers with their purchases. As well as door-to-door couriers, other possibilities are offering collection from your business for local buyers (which saves both parties the entire courier cost) and also using pick-up lockers such as Bob Box. Seller-to-locker rates are typically cheaper, and give your buyers the convenience of collecting their items when it suits them, rather than having to wait in for a delivery.
When you register with Bob Go, you can offer rates at checkout, so that your buyers can see immediately how much they will be charged for shipping. This enhanced level of transparency promotes trust, and while it doesn’t directly help you save on courier costs, it does streamline your shipping admin for you.
Mistake 5: Not using Bob Go!
Being an ecommerce seller without Bob Go means having to do all your own order management and fulfilment. That takes time – and time is money! When you register with Bob Go, we can help you save on courier costs thanks to our partnerships with all of South Africa’s leading courier companies. That lets us negotiate competitive rates that we can then pass onto you – and you can pass onto your online customers. If you only make one change after reading this blog, make sure it’s registering with Bob Go and taking your fulfilment and order management to the next level, for less.
Sign up for your free trial at https://my.bobgo.co.za/register and start saving on courier costs today!
