Lowering shipping costs is the most effective route to better profit margins. Smaller e-commerce companies can reap huge benefits by focusing on reducing shipping rates and streamlining packaging. Free or low-cost shipping options have become vitally important to consumers: high delivery fees may lead them to abandon their shopping cart. Whether you offer same-day delivery, free shipping or a click-and-collect service, there are ways to reduce your costs.
- Negotiate rates with shippers
Third-party logistics (3PL) companies that focus only on a few core logistics services generally deliver the best value for small businesses. Fit Small Business, recently evaluated 3PL companies and came up with a list of six recommended ones, rating them on these seven criteria:
- Range of services
- Customer service
- Cost and value
- Startup-friendliness and scalability
- Simple onboarding
- Management systems
There is always room to negotiate on price, even for small volumes.
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