When running a small business that ships products to customers, such as from an online e-commerce store, one of the biggest expenses, after the cost of goods, is often the shipping and packaging costs. As every product you sell needs to be packaged and shipped, these costs aren’t a cost you can avoid. However, you can make these costs substantially cheaper to save your small business money.

No matter whether you are shipping domestically or need to send package to Canada or anywhere else in the world, read on to learn how to save money on packing and shipping for your small business.

Tip #1: Choose the Right Box Size

The first of our e-commerce packing tips is to use the correct-sized box for your order.  So often I have received the tiniest product in the most ridiculous oversized box which is not only a huge waste of materials using such a large box, but it’s also a waste of money as it costs more to ship larger packages.  Make sure your business has a range of box and envelope sizes to ensure you are not wasting money using the wrong-sized packaging or paying for larger parcels when the product would fit in a smaller package.

Tip #2: Use Secondhand Packaging

While this may not work if you send luxury goods and customers expect pristine packaging, most businesses can prevent waste and save money by using secondhand packaging to ship their goods.  I’ve often received goods in an obviously reused box with a simple sticker or stamp on the front to say something along the lines of “Excuse the recycled packaging, we’re doing our bit to help the environment, please reuse or recycle!”

Tip #3: Use Quality Materials

With the last point in mind, make sure you are using quality materials, even if recycled or secondhand.  It’s no good sending products in substandard packaging materials that risk breakages or damage in transit.  This will only cost your business more in the long run as you have to send out replacement products to disgruntled customers.

Tip #4: Secure Fragile Items

Following on from this, make sure fragile items are securely packaged and boxes are labelled as fragile in bold writing, or by using fragile tape.  It can be easy for fragile items, even when labelled, to become broken in transit, so making sure they are well-secured is key.  Again, breakages are only going to cost your business more in the long run as you may incur additional postage costs and have to replace broken items.

Tip #5: Avoid Overpacking

However, there is a fine balance!  Don’t overpack goods as you will waste packaging materials and waste money in the process!

Tip #6: Seal Parcels Properly

Use strong packing tape to secure box seams to ensure they don’t open in transit, especially for heavy goods. Investing in strong packing tape will help ensure items arrive with less damage and it will secure the package from any dishonest courier staff who may try to tear the package to see if they want to steal what is inside.

Tip #7: Buy Packaging in Bulk

A simple, but always effective tip.  Buying in bulk is a great way to cut costs on whatever you are purchasing for your business, including packaging.

Tip #7: Discuss Reduced Shipping Rates with Carriers

The same goes for your shipping costs with the carrier.  If you are shipping large quantities of parcels each week with the same courier, you can often agree to a more favourable rate than the advertised prices.  Just speak to them and see if you can come to an arrangement.

Tip #8: Use a Reputable Carrier

Make sure you use a reputable carrier, however.  If you have multiple accounts of your carrier losing parcels or damaging them in transit then this won’t be a good look for your business or your potential customer reviews.  Even if they are the cheapest courier for shipping, it could be better to cut your losses and pay slightly more to ensure the safety of your packages and for happy repeat customers.

Tip #9: Insure Valuable Items

To ensure you don’t lose out on the cost of broken items in transit or parcels that somehow get lost, make sure you ensure your shipped items, especially valuable goods.

Tip #10: Use a Tracked Shipping Service

Sometimes customers can be dishonest.  Sometimes couriers can be dishonest.  Sometimes things just get lost in the post and no one is quite sure how.  The best way to check that your items have been delivered and arrived safely at the correct customer address is by using a tracked shipping service.  This will also ensure you can make a claim with a courier as you can prove the goods were never delivered. 

Final Word

While packing and shipping costs are a necessity for an e-commerce store, you can reduce expenses by following the tips above.  Make smart, sustainable packaging and customer-friendly courier choices to support your business’s growth.