Reduce Shipping Costs

Proven strategies to reduce shipping costs, whilst also minimising storage and other associated costs

Whilst the growth in ecommerce is undoubtedly fuelling competition amongst couriers and haulage providers, a key challenge for any business is attempting to reduce shipping costs.

 

A central part of any strategy to improve a company’s performance in this area is the role that packaging has to play.

Reduce Shipping Costs

The usual reason why there is a need to reduce shipping costs

Many companies will utilise stock sizes of boxes and cartons (or off the shelf protective cases / bins)  for one simple reason – as they are produced in bulk and have no upfront design or tooling costs, they are considerably cheaper per unit than custom designed boxes.

 

So what is the problem?

 

Whilst this sounds great in principal, the problems become apparent when shipping the finished products. To use the “nearest” sized packaging usually means a box that is big enough. However, the likelihood is that there will be wasted space within each box.

 

This in turn means that shipping costs rise. Effectively you are paying to ship boxes that are not completely full or that are packed with void fill products (which have to purchased at further additional cost).

 

Amazon – one of the largest shippers of goods globally – are frequently given negative press coverage for sending small goods in outer cartons that are substantially larger than is actually required.

 

If this sounds familiar, you can benefit from strategies to reduce shipping costs.

Considering the argument for custom sized packaging

Whilst it is not always the case, custom sized boxes can save companies vast amounts of money in shipping and courier costs.

 

Designed to perfectly fit your product, you can be certain that no space is wasted and more products can be delivered at one time too.

 

This is particularly important with the increased prevalence of volumetric shipping charges. It is even more important if goods are to be shipped internationally too.

Minimise Packaging Costs

A team of experienced designers will work alongside you to create a packaging solution that  allows you to maximise the efficiency of your shipping and / or logistics operations.

 

Great care will also be taken so that  transit protection required for your specific products will not be compromised either. In fact, increased transit damage can offset any savings realised through strategies to reduce shipping costs.

Other ways custom sized packaging can reduce costs

Besides the reduction in shipping costs, tailoring the size of your packaging to your products can result in a number of other cost savings and advantages too.

 

Firstly, items used to fill any additional space, including foam pellets and other void fill packaging, are no longer required. Eliminating the need to purchase this secondary packaging has an obvious and immediate benefit to your overall costs.

 

Custom size boxes will also generally take up less space in storage, and the costs associated with this.

 

Being tailored to your products, they will usually offer improved levels of protection too. This in turn leads to fewer damages during transit, fewer returns and fewer customer complaints.

 

The overall effect of this is lower costs of replacing goods, happier customers and an increased likelihood of repeat business.

Case Study: Hardware Services

Hardware services, a GWP Group customer of over 10 years, source a range of bespoke corrugated boxes and cartons. These are used primarily for shipping out network refurbishment equipment.

Custom Sized Packaging

By taking advantage of tailored sizes, the costs of shipping have been greatly reduced.

We source a range of bespoke cardboard packaging for our network equipment refurbishment program. There is a “family” feel when dealing with GWP and you can really see how much they value their customers. I would recommend GWP due to the flexibility of helping their customers create a solution and service that fits the needs of the business.

Ben Carter | Hardware Services Operations Manager

Summary of key benefits:

  • Reduce shipping costs through tailored sizes (eliminating shipping of “empty space”)
  • Elimination of costs and storage associated with secondary (void fill) packaging
  • Sizes can be tailored to Royal Mail or courier specific guidelines
  • Frequent reduction in storage space before use
  • Particularly beneficial for ecommerce and mail order operations

Find Out More

For further information on how custom designed packaging can lower your shipping costs, please speak with a GWP Group advisor for free, impartial advice today.

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Could your business benefit from packaging that reduces your shipping costs?