Shipping costs can be a big problem for online stores. When you send things to other countries, it’s even worse. You have to worry about taxes, duties, and finding the cheapest way to ship. This can stop stores from selling in new places, which means they miss out on more customers and money.
This article will talk about five ways that stores can save money on shipping to other countries in 2024. So let’s not waste any more time and get saving!
5 Ways To Reduce Shipping Costs In Canada
In this post, we’re going to explore five ways that merchants can lower their international shipping costs in 2024.
Keep Your DIM (Dimensional Weight) Weight As Low As Possible
DIM weight, also known as dimensional weight, refers to the standard method that carriers use to calculate shipping rates. Instead of just measuring the weight of a package, DIM weight also considers the size of what is being shipped. The higher the DIM weight, the more expensive shipping will be.
But, how can you lower DIM weight? It’s a fairly simple task, by ensuring that you aren’t adding unnecessary bulk to your packages. For example, if you’re putting a small item inside a large box, you’re going to pay far more for shipping than necessary.
So make sure that your packaging is sized appropriately for the items you’re shipping. Or you’ll be paying a lot of money to ship air!
Avoid Blanket Free Shipping Policies
In the age of Amazon, free shipping has become an expectation rather than a perk. According to Statista, 70% of customers listed free shipping as the perk they wanted most while shopping online during 2023. This leaves smaller retailers between a rock and a hard place
But offering free shipping doesn’t have to be all or nothing. If brands play their strategy right, they can reduce their shipping costs while also providing their customers with an incentive to spend more.
By offering premium delivery options. 70% of consumers say they would be willing to pay extra for expedited delivery options.
When you offer your customers different shipping options. Let them choose between fast and slow shipping. As, Fast shipping might cost more. You can also make customers buy a certain amount to get free shipping. This helps you make more money on each order.
Avoid Split Shipments
While split shipments are sometimes unavoidable, it’s one of the biggest reason a merchant’s shipping costs balloons out of control. When an order is divided into separate packages for transit, your shipping costs may double or triple while the revenue earned stays the same. This means frequent split shipments can result in losses due to increased fulfillment, packaging, and shipping costs.
So, How Can You Prevent Split Shipments From Becoming Too Frequent?
Ensure your reorder point can handle longer lead times to avoid pulling inventory from another warehouse.
Group products in the same facility that customers are likely to buy together e.g. footwear and socks.
Offer customers the option for consolidating their order by shipping items to one warehouse for order fulfillment, which will cost less than residential delivery
Explore Flat-Rate Shipping Options
If your business is regularly shipping parcels all over the world, it’s worth exploring whether flat-rate international shipping is a good option for your business. Flat-rate shipping is where shipping rates are determined by the size of the box or envelope prescribed by the carrier instead of DIM weight. The biggest advantage of flat-rate shipping is that it standardizes shipping costs for you and your customers. In addition to that, some shipping carriers also supply their own packaging for flat-rate services, which helps to keep your associated costs down.
However, there are some drawbacks. Flat-rate services only accommodate packages up to a certain weight. If you’re paying to ship very lightweight items, you’re likely to end up paying more than you need to. It’s important to review your product range and determine whether flat-rate shipping will result in cost savings for your business.
Partner with a 3PL provider
Comparing carriers and looking for ways to save dollars off your shipping costs is incredibly time-consuming for retailers. It takes time away from managing other areas of your business and maximizing key growth opportunities.
Which can end up damaging your brand in the long term. Instead, it’s worth considering outsourcing fulfillment to an experienced ecommerce fulfillment provider. Who can use their advanced technological and physical infrastructure to lower your shipping costs:
Extra Tips
To get the most out of shipment savings, let’s consider these additional factors.
- Wholesale Shipping Rates:
Third-party logistics (3PL) providers can use their substantial shipping volume to negotiate lower shipping rates with parcel carriers, resulting in more affordable shipping costs for both you and your customers.
- Advanced Cartonization:
A 3PL can equip your business with a sophisticated Warehouse Management System (WMS) that can evaluate each order to determine the most suitable packaging for safe and cost-effective shipping. This minimizes packaging waste and further reduces your shipping expenses.
- Multiple Fulfillment Locations:
A 3PL with a network of facilities can help you strategically locate inventory closer to your end customers. This shorter shipping distance translates to faster and more economical delivery compared to a single warehouse setup.
Conclusion
By implementing these strategies and considering the options presented, you can significantly reduce your international shipping costs. Remember, optimizing packaging, leveraging technology, and partnering with the right 3PL provider are key factors in achieving long-term savings. By taking proactive steps to streamline your shipping processes, you can improve your bottom line and enhance your overall e-commerce operations.
So, don’t let high shipping costs hold your business back! Take the next step by implementing these strategies to streamline your shipping and boost your profits today!
FAQ’s
How To Lower Shipping Costs In Canada?
If you have a limited quantity of pallets or boxes to ship, LTL shipping can be a more economical choice. By sharing a truck with other businesses, you can reduce your shipping costs and avoid the expense of a full truckload.
Why Is Shipping So Expensive In Canada?
Due to its geographic location, Canada is situated at a considerable distance from many major global marketplaces. This remoteness often results in increased shipping costs for products entering or exiting the country. The isolation can lead to longer transit times and compliance with additional regulations.
How Much Is Import Tax In Canada?
Unless explicitly exempted, a 5% Goods and Services Tax (GST) is applicable to items imported into Canada by mail. The Canada Border Services Agency (CBSA) determines duties based on the value of the goods in Canadian currency.
