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5 Tips to Reduce Packaging and Shipping Costs

5 Tips to Reduce Packaging and Shipping Costs

Shipping costs can be one of the biggest expenses for many small businesses.

In today’s competitive e-commerce arena, more and more businesses are entering the marketplace than ever before…and it’s becoming even more essential to keep costs under control. Packing and shipping are unavoidable costs, but there are ways to reduce packaging and shipping costs by re-evaluating your packaging and shipping processes.

Our experts at Hughes have compiled five of our top tips on how to reduce your packaging and shipping costs to boost your ROI and earn more customers, too!

1. Automate Packaging & Reduce Labor Cost

Save significant labor costs associated with manual effort and time spent in selecting the optimal packaging boxes by choosing automated onsite packaging technology for your business. Adding automation or robotics for bagging, for example can turn an inefficient and labor-intensive operation into a smooth, cost-efficient process. Optimize performance, boost workplace efficiency, reduce on-site employee injuries, increase output and improve your /blogsiness’ ROI.

2. Decrease Your Cost Per Packaging

Companies can quickly lower shipping costs by keeping the packages as small as possible – allowing them to operate more efficiently and be more eco-friendly, too! Choose the right size box for your product, or even make the switch from boxes to bags. Simply put, using mailing envelopes to ship will cost less than using boxes because they take up less space.

3. Reduce Surcharges

Eliminate wrong address penalties by using online tools (often provided by carriers) to verify shipping addresses.

4. Negotiate Shipping Rate Discount

No matter your size, work with your FedEx, UPS, or DHL representative to get the best discount possible for your company. Get an even bigger discount by designate one carrier as the primary carrier to get volume shipment discount on top of your existing negotiated rate.

5. Minimize Dimensional Weight Pricing

At the start of 2015, both FedEx and UPS began using Dimensional weight pricing for all domestic ground orders. Carriers now charge more for packages that are large in size but light in weight. The new dimensional weight pricing, which takes into account package volume rather than the box weight, can greatly impact businesses’ shipping rates with these costly changes. If the shipping box/parcel size falls into dimensional weight category, it may be cheaper to ship the items in multiple boxes rather than in a single large box.

Save with Hughes

Hughes Enterprises offers a wide variety of packaging equipment to fill any and all of your business’s shipping and packaging needs – regardless of your company’s size. Working very closely with each of our customers, Hughes strives to find the right solution for your packaging needs. Trust our packaging experts to help your decide on the best design for your product’s packaging. For assistance with your shipping and packaging operation needs, contact a Hughes Sales Representative today.