How Can Small Businesses Reduce Their Shipping Costs?

Tractor TrailerFor many small businesses, shipping is a major expense. Fortunately, resourceful business owners can find ways to reduce their costs. Today we’ll offer a few suggestions to help you get started.


You have more bargaining power than you think! Compare rates among different shipping companies and negotiate with them to compete with rival companies by lowering their rates.

Use Third-Party Insurance

Many small-business owners don’t know that it can actually be cheaper to use third-party insurance rather than buying insurance through your shipping carrier, especially when shipping expensive items.

Keep an Eye out for Fees

Read the fine print carefully to watch out for sneaky fees. Carriers may charge for things such as Saturday delivery, delivery signatures, fuel surcharges and residential delivery service. Watch out for these fees to avoid paying extra for services that don’t really matter to you and your customers.

Use the Carrier’s Packaging

If you use your own, you could wind up paying “dimensional fees” for boxes that exceed the carrier’s size regulations, even by a millimeter or two.

Consider Prepaid Shipping

If you regularly send packages that are the same weight, purchase a quantity of shipping labels up front and affix them to packages as needed rather than paying for each package as you send it. This tip could save you as much as 20%.

Of course, shipping is only part of the picture—warehousing and distribution are important, too. At American Supply company, we operate a full-service, conveniently-located commercial warehouse and storage facility with easy access to I-95 and I-76. Contact us to learn more about how we can help you get your products where they need to be today!

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