5 Ways to Manage Higher Small Business Shipping Costs

If your small business does a lot of shipping to its customers, the recently announced changes from the United States Postal Service, which has raised rates and is ending Saturday delivery service for everything but packages starting in August 2013, will impact your bottom line. Justin Amendola, Pitney Bowes’ shipping expert, shares tips on how we as small business owners could keep our shipping costs under control.

Here are 5 ways to manage higher shipping costs.

Cleanse your mailing lists.

With the cost of each mailing and shipping rising, it only makes sense to take time to review your existing lists and remove the wrong and outdated addresses.  Doing so can immediately save money. More than 30 million Americans move and 11% of all ZIP Codes change every year.  Bad addresses result in shipping delays, costly returns, and high customer dissatisfaction.

Start using an online shipping solution

Not all businesses have a shipping issue, companies involved in construction like wall construction by action solutions, remodeling pros and others this doesn’t apply to you obviously. If you bring your shipping in-house, you will automatically qualify for what the USPS calls commercial-based rates, which are much less than retail, which you pay at the window. It’ll be cheaper than say using piano movers indianapolis to ship your items that’s for sure. Amendola says reduced rates are available to customers who use PC or online postage solutions, such as pbSmartPostageTM, permit imprints, or any of the leading digital mailing systems.  A business can easily print shipping labels and manage shipments anytime. It also saves hours each month that you spend waiting in line at the Post Office.

Rate shop

Rate shop your parcels among all available carriers and delivery methods. If your package weighs less than 13 ounces, you can use first class mail, as this is still the lowest cost delivery method available for lightweight packages.

Use flat rate pricing

Priority mail is almost always cheapest for packages over 14 ounces to about 3 pounds. With commercial rates, your business can save 19% for Priority Mail® and up to 36% for Express Mail®.  A 10-pound Priority Mail shipment that once cost $36.50, for example, can be sent for as little as $5.80.

Consider ground shipping

Parcel Post is no longer available. Parcel Select is now your best option for medium to large packages. This is a service from USPS launched last year that is designed for large and medium sized shippers looking for an economical ground delivery service.  Standard Post is another option, but you’ll pay up to 21% more. Parcel Select® offers good pricing on ground delivery from the USPS.

Start a Sales Force

This isn’t really as much about lowering shipping costs but the truth is you can only lower shipping costs so much, so the other thing you can do is increase sales. To do this you will need to have some people out there helping to move your products. Now you can hire some people to do this but it is going to take a lot of effort to train them before they are able to really start selling much. One of the quickest ways to start getting some returns on your sales force is to look at outsourcing sales overseas for b2b accounts. We have had much experience in this and it is a great way to get going quickly with a sales force.

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