How to reduce ecommerce shipping & fulfillment costs

For every ecommerce seller, there is one thing in common, that is shipping. When purchasing online, free shipping has been one of determinants for buyers to make their final decision, on the contrary, high shipping and fulfillment fee may led them to abandon the shopping carts. Notably, how to handle your ecommerce shipping has been a dramatic impact on your sales growth.

But shipping isn’t cheap and it isn’t event fast, at least not for small ecommerce business. Unlike large brands can always afford to offer free shipping, small and medium sellers have to take shipping costs into consideration while setting selling price.

The problem then is, as a small or medium ecommerce business, how can you maintain your profit with these heavy shipping and fulfillment costs burden.

Ways to Cut Ecommerce Shipping and Fulfillments

Cautious product selection

First of all, sellers can take logistics into account when choosing products, because the logistics cost of small-volume products will be lower and then their profit margin will be higher than products with bigger size of the same value. So between large-volume products and small-volume products, sellers should consider small-volume products more.

Right-size the package

Shipping carriers charge based on the package’s size, weight and destination. You will save a lot if you use smaller and lighter packaging material. And the packing method should be tested to work out the optimum way, including packaging box material selection and combination, filler, bubble bag, tape, etc. You will have a considerable saving on shipping costs after your find the best packing method.

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