Affordable international shipping is a game-changer for small to medium ecommerce businesses. However, for SMBs, this is not easy to achieve. Small businesses naturally have lower volumes of shipments, in comparison to larger businesses, which are afforded lower prices thanks to their frequent and large orders. Several other challenges in the shipping process pose obstacles that can even raise costs for SMBs, if they are not careful, such as damaged goods or lost properties, threatening to squeeze their already tight profit margins.
In this article, we’ll look at four ways SMBs can reduce their international ecommerce shipping costs, helping maintain profitability while reaching customers across the globe.
1. Insure all Shipments
While the upfront cost of insuring shipments might seem like an extra burden, it’s an investment that offers significant value in the long run. Insurance not only mitigates risks associated with international shipping, such as loss or damage of goods, but it also decreases potential revenue losses during such mishaps.
Depending on the destination country, having insurance on your shipments might not just be a good idea, but a mandatory regulatory requirement. Having shipment insurance acts as a safety net, offering you peace of mind and protection against unforeseen events.
In this regard, a comprehensive shipping insurance solution tailored for SMB ecommerce companies like Shippo can play a crucial role in slashing your shipping costs.
The platform has simplified the often cumbersome insurance claim process by making it entirely online and paperless. This means you can quickly gather and submit all necessary documentation, leading to a smooth filing experience.
Besides the streamlined claim process, Shippo’s quick reimbursement policy ensures that any monetary loss due to mishaps during shipping doesn’t stagnate your cash flow for long. Reimbursements can be received through a physical check or directly into your PayPal account.
Shippo’s services extend to almost all shipping carriers globally, facilitated by their third-party insurance provider, Shipsurance. Moreover, the platform also offers the flexibility to purchase insurance programmatically via the Shippo API, adding a layer of convenience for SMBs with automated systems.
2. Negotiate Better Shipping Rates with Multiple Carriers
For SMBs needing to be lean in their expenses, it can be a major challenge managing the international shipping process. Working with freight marketplaces or forwarders can significantly help SMBs manage the process, and more importantly, select the most affordable prices from the myriad of options available. As SMBs usually also require expert guidance to understand what best suits their needs, consulting with third-party logistics experts can go a long way.
For example, Ship4wd is a digital freight forwarder that exclusively serves SMBs, getting them affordable prices thanks to its global partner network and mass representation of SMBs. When using Ship4wd, SMBs get access to an easy-to-use dashboard where they can choose and manage their quotes and track shipments in real-time.
Ship4wd also offers flexible finance options and credit lines, helping SMBs navigate through cash flow crunches, which are very common, especially when it comes to international shipping.
Working with a freight forwarder like Ship4wd can also save time and headaches, as they can help with negotiations, paperwork, and customs. By working with the right partners, SMBs can keep their focus where it belongs — delivering value and positive experiences to their customers.
3. Utilise freight consolidation services
For small to medium-sized ecommerce businesses, the struggle to garner the attention of major shipping carriers is real, as carriers often prioritise their larger, more lucrative clients. This situation can result in increased shipping costs for SMBs. However, there’s a solution: freight consolidation.
Freight consolidation refers to combining multiple smaller shipments (less than a truckload or less than a container load) into one larger, more cost-effective shipment. Not only does this service help reduce costs, it also doesn’t compromise delivery speed.
C.H. Robinson provides a comprehensive and wide-reaching freight consolidation service that integrates your less-than-full truckloads or container loads into complete shipments. This is applicable whether you’re transporting via air, ocean, or truck, and it guarantees reliable and punctual deliveries across the globe.
The platform’s forward distribution service ensures your product’s quality and shelf-life while cutting transport times. They achieve this by storing and staging your products near their final destinations and packing them to order.
Leveraging advanced technology can save businesses time and cut costs, helping identify opportunities from different shipping companies moving in similar lanes. This level of optimisation is rarely found in the industry and is crucial for SMBs looking to streamline their international ecommerce operations.
4. Improve your packaging
Effective packaging plays a dual role in reducing international shipping costs. Firstly, it directly shields your products during transit, minimising the likelihood of damage and the consequent financial loss. Secondly, it indirectly fosters customer satisfaction as it enhances the unboxing experience, thereby fostering brand loyalty and repeat orders.
Catering specifically to ecommerce businesses, Shorr provides tailored packaging strategies aimed at improving operational efficiency and productivity, while lowering material usage and labour expenses.
Their range of products, encompassing everything from corrugated boxes and carton sealing tape to temperature control devices, caters to the diverse needs of all kinds of ecommerce stores.
Moreover, its nationwide network of distribution centres ensures your packaging supplies are always at hand and delivered promptly, supporting the growth of your ecommerce enterprise.
Working with a partner that understands your unique business requirements and can provide a comprehensive assessment of your packaging operation is a near necessity for SMBs looking to reduce their shipping costs. With a secure packaging system, SMBs can save costs, stand out in the competitive online marketplace, and create memorable experiences for their customers.
Wrapping Up
Taking proactive steps to reduce international shipping costs can significantly boost the profitability and global reach of small to medium ecommerce businesses. By considering the tactics mentioned in this article, ecommerce SMBs can be well on their way to saving on costs and achieving their international business goals.
Like this article? Read more fulfilment content in the Ecommerce Fulfilment Update August 2023.
