Shipping internationally is expensive. It requires you to factor in duty, tax, country restrictions, and customs clearance, among other things, which makes the shipping cost shoot through the roof.
And like that is not enough, as of July 1, 2020, there was an introduction of added international shipping rates due to countries’ self-declaring postal rates. This led to increased rates for many US shippers.
For these reasons, many shippers now opt for a local or regional carrier service to offset this high shipping cost. But, shipment-specific import fees still make it complex to lock in the best rates for all shipments.
This doesn’t mean you can’t save cash when shipping internationally. If you implement certain practices, you can go against these formidable market forces and make huge profits for your business.
Betachon is a great place to start. With Betachon, you regain control over your shipping costs and start shipping affordably. Request a demo today and start saving money.
15 powerful tips to help you get cheap shipping rates
Everyone wants to save a coin whenever possible. Therefore, it’s no-brainer that you may want to implement practices and sort ways to help you lock in low shipping rates for your business.
To help you with that, here are 15 practical ways to help you secure cheap shipping rates.
Negotiate shipping rates with carriers
In business, you don’t get what you deserve; you get what you negotiate.” -Richard Nixon.
If you’re a high-volume shipper, aim to make space for your business at the negotiable table. This way, you’ll be able to tap the best possible pricing for your packages.
If you don’t negotiate, you’ll continue paying high shipping rates, which you can actually cut off and direct those funds to other areas of your business.
Some of the top strategic tips to help you negotiate with your carriers include:
Knowing what other carriers are charging
Knowing what other carriers charge shippers and how much they are willing to discount you will give you an upper hand when it comes to negotiating rates.
You’ll know the rates to ask for, and the carrier will be more willing to work with you as they know you can take your business elsewhere and get the exact reasonable rates you are asking for.
Letting your data speak for you
Numbers don’t lie. So make use of your data to show your value to the carrier. Talk to them about your past shipping volume, how you’re exclusively shipping with them, or that your packages are usually delivered in one day.
If our data shows you’re a valuable partner, they’ll be more than willing to listen to your bargain.
Building a relationship with your carrier account manager
If you’re assigned an account manager, like in the case of FedEx or UPS, consider staying in touch with them.
Also, make their work easier by giving them a heads up. For example, when you’re going through a dip or spike in shipping demands let them know in advance.
Fostering human connections can help you create a powerful rapport which will make approaching the carrier you’re working with and negotiating for cheaper rates easier and smoother.
Use lighter and smaller packaging boxes
The heavier and bigger the size of the packaging box, the higher the cost of shipping.
This is because you can only fit a few bigger and heavier boxes in a truck before it’s full. Therefore, for your carrier to make profits, they have to charge you more.
If you can make your product weigh less or fit in a smaller box without compromising anything, do that. If you can ship securely in a padded mailer instead of a box and filler paper, go for that. This will help you save a ton in the long run.
However, take caution not to use bad quality packaging material as this can add other unnecessary costs. For example, you may need to ship replacements or make repairs if your products get damaged on the way to delivery. Therefore, always aim for good quality packaging material that’s small and lightweight.
Use flat-rate packaging
If you ship heavy items, consider using flat-rate packaging instead of weight-based pricing.
With flat-rate packaging, you’ll only be charged for your package size and sometimes the distance to be covered and the speed of travel. The charges will not be affected by the products’ shape, size, or weight.
Flat rate packaging allows you to use the carrier’s packaging material; thus, you don’t have to buy your own custom boxes, which saves you money.
It also allows your carrier to pack their trucks neatly and conveniently, which saves them money, and consequently, they pass the savings to you.
Opt for poly bags
Even though using flat rate packaging and small, lightweight boxes are enough to offset shipping costs; you can take it a step further by using poly bags instead of boxes.
Poly bags are ideal for shipping non-fragile items like clothes. They don’t take up much space, and their buying price is also low compared to boxes.
Note that you may need to use convectional tape to seal the bags to securely lock in the items inside.
Buy supplies in bulk
Another great way to ship cheaply is to reduce the expenditure on packaging supplies. Buying supplies in bulk will allow you to buy at the wholesale price, which will save you money compared to buying at a retail price.
If you want to offset this price to the maximum, consider using free shipping materials offered by your carrier.
USPS offers free boxes for priority mail international shipping. You can also keep a few of these boxes for non-priority shipments.
FedEx also offers free shipping supplies you can take advantage of.
Use regional carriers
If you ship within a certain region, consider using regional carriers. Regional carriers typically offer the same services as UPS and FedEx but at a much-reduced price.
The only difference is that their delivery network is limited. This means you will need to partner with a couple of them to cover the whole geographical area of your target market.
Get a fulfillment warehouse
Setting up warehouses in the countries your target market is in can help you deliver products from a local station. This not only gives your business an international outlook, but it also cuts down transport costs as well as reduces delivery timeframes.
It makes sense that if you usually ship from point A to B, staying close to B can help save transport costs.
However, note that getting a warehouse is a viable solution for businesses that sell high volumes of products internationally.
This is because warehouses can be an added cost to small businesses that are already not making much. But still, considering one, maybe the untapped opportunity to increase your international shipment demands.
Make use of prepaid shipping
Prepaid shipping means paying for shipping labels generated by your carrier prior to shipping your packages.
You’ll need to buy a bunch of these labels and put them on your packages prior to them being shipped out; thus, you’ll not have to pay for each label when you have to ship a package.
Prepaid shipping allows your carrier to see what will be shipped upfront. It’s a way of telling your shipping company, “Hey, I’ll be shipping the same weight of package tomorrow.”
And the best part is, carriers love when you do this. They can offer up to a 20% discount on shipping costs when you use prepaid shipping.
Use third-party insurance
Delivering your items through multiple modes of transportation increases the chances of damage or loss. This means there’s an increased chance to refund, replace or repair products. It also means you’ll need to pay for shipping costs again.
And even though most carriers provide cover to a certain amount at no added charge, this coverage is not the same as insurance. It’s limited.
Insurance reimburses for the full shipment value regardless of the damage or loss incurred.
It gives you peace of mind as you don’t have to worry about shipping costs. It also allows you to provide great customer service to your customers, which can help you retain them.
To save a coin, consider third-party insurance covers. They will make your international shipping process easier. They are also cheaper than insurance offered by carriers.
Choose the right shipping carrier
It doesn’t go without saying that choosing the right carriers is one of the most important decisions you have to make to boost your business.
Your products may be great. The packaging materials may also be great. But choosing the wrong carrier will cost you a lot.
The wrong carrier is one that doesn’t care about your business. And the right carrier is one that understands your needs and fulfills them to the best of their ability.
When choosing a carrier that offers the best international shipping services, you need to consider several things. These things include:
Reliability
What is their level of service availability? Do they offer shippers consistent and high-quality services?
Reputation
Do they have a bad reputation, such as delivering items late or in bad condition?
Cost and service
Whereas you may be tempted to go for the cheapest option. Cheap can be expensive. Instead, compare the price and the service quality.
If the cost is low and the quality of service is bad. Run and don’t look back. Such services will negatively affect your eCommerce store.
Again, note that you don’t have to stick to one carrier. You can use a handful of carriers to fulfill your shipping needs. Carrier A may be the best in X, but carrier B outshines carrier A in Y. So, use both of them.
Having several choices also gives you the ability to meet your instantaneous shipping needs.
But note that this doesn’t mean you have to be all over the place. Two to three options are ideal. That way, you’ll have strong bargaining power when negotiating rates- you can claim you’re a loyal customer.
Look for programs and discounts from international shipping companies
Most carriers offer membership programs and discounts to shippers. If your carrier is already offering you these perks, good for you.
But it doesn’t hurt to check what other carriers are offering. This way, you will be able to identify bigger opportunities that can help your business save tons of money on shipping operations.
To give you an example, UPS offers a small business program where they promote small businesses, helping them save on shipping for eight weeks, followed by another discount on weekly UPS shipping volume.
FedEx, on the other side, also offers saving programs. You can save 22% on eligible FedEx Express services and 9% on eligible FedEx Ground.
Offer different delivery timeframes
When shipping overseas, speed is directly proportional to cost. The faster you deliver your goods to customers, the higher both of you will pay for shipping.
Something else, never assume your customers’ first priority is getting the product soon. They may be willing to wait a little longer to save money.
Therefore, offer various time frames for your customers to choose from. You’ll be surprised that they also want to cut expenditures just like you.
Choose a pricing model that fits your budget
There are four pricing models for international shipping. These models include:
Courier rate shipping
This is the most common model used by many shippers. It allows you to find the best rate by comparing local, regional, and express courier services.
It also allows you to go through various prices and delivery speeds to choose which service best suits your specific shipping needs.
Free shipping
This is the most loved model by customers. But as a merchant, this model will dent your business credit card. If saving money is the goal, avoid this pricing model.
Flat-rate shipping
Flat-rate shipping allows you to ship packages 50-70 pounds at a fixed price. This makes this model cost-effective as shipping heavy items over long distances is usually expensive.
Hybrid Shipping
This model combines shipping and logistics services such as 3PLs to lower shipping costs.
With this model, you’ll be shipping your products to the destination country, and the third-party logistics providers will take over to store and fulfill orders.
Choosing the most appropriate pricing model can help save money. If you’re already using any of the above, consider looking at your agreement and see if you can optimize it to save on shipping.
Factor in your target markets
The destination of your items has a huge impact on shipping rates. For example, it is more expensive to ship from Texas to Argentina than to Mexico.
Again, it’s rare to find a carrier that’s cheap for all your global market. This only means it’s wise to find several carriers for each delivery destination.
Therefore, compare carriers ( local, regional, and express couriers) that ship to your target market to find the cheapest one that suits your needs.
Maximize use of shipping account number
If you buy goods from domestic suppliers and then ship them internationally, consider asking those suppliers to use your account number when shipping to you.
This way, you’ll manage to increase your business shipping volume, which can help tap into cheaper rates.
Carriers love when you give them business. And the higher your shipping demands, the more likely they’ll offer you better discount deals.
While it may take time to convince your suppliers to use your shipping account number, once you do, you’ll be able to save a ton as well as help them prevent padding on their shipping costs.
Ship internationally at a cheap rate
Shipping rates make up a considerable expense that can overwhelm your shipping budget. Therefore, it’s only logical to seek ways to cut corners and lock in low rates to save some money.
And while you can implement several tips to offset high shipping rates, getting an audit for your shipping operations should be at the top of the list.
An audit can help you evaluate the costs you spend on delivery fees as well as make it easier to recognize where you’re going wrong. The audit can help you attain a comprehensive shipping report you can use when negotiating rates.
Simply put, an audit can help you regain control over your shipping costs. Here at Betachon, we can help you with this and more. Request a demo today and start shipping internationally at cheap rates.