Packaging Innovations to Reduce Shipping Costs for SMBs
Shipping costs can greatly impact any small to medium sized business. The packaging used to ship products plays a big role in determining the overall shipping expenses. By implementing smart packaging strategies and innovations, SMBs can effectively reduce their shipping costs and increase profit margins.
Use Lightweight Materials
One of the best ways to reduce shipping costs is to use lightweight packaging materials. This lowers the dimensional weight of the package, which is how carriers like USPS, FedEx and UPS calculate shipping rates. Some effective lightweight options include:
- Padded Envelopes – For smaller products, padded envelopes can cost significantly less than a box. Choose paper over plastic for even more savings.
- Air Pillows – Inflatable air pillows cushion products at a fraction of the weight and cost of bubble wrap.
- Lightweight Bubble Wrap – New lightweight bubble wrap reduces bulk while still protecting products.
- Paper instead of Plastics – Choose recyclable kraft paper whenever possible as an eco-friendly lightweight void fill.
Right-Size Packaging
Many SMBs use boxes and mailers that are far too large for their products. This unnecessary space increases dimensional weight. Carefully measure products and choose the smallest packaging that will properly contain them without compromising protection.
Leverage USPS Cubic Rate Pricing
For USPS shipments, utilize Cubic Rate pricing which bases rates on the cubic footage of a package rather than just weight. Cubic Rate pricing is ideal for lightweight, low-density packages. Design packaging to maximize cubic space efficiency.
Optimize Box and Mailer Sizes
When selecting packaging, choose boxes and mailers that align with USPS and carrier standard sizes. Non-standard and custom sized containers can result in higher shipping rates. Stick to common sizes like 12″ x 12″ x 8″ boxes.
Strategically Use Void Fill
While cushioning products is important, overusing void fill like packing peanuts adds unnecessary weight. Use just enough to prevent movement and strategically place in areas most vulnerable to damage. Alternatively, utilize snug-fitting interior packaging like folded cardboard inserts.
Offer Simple Returns Packaging
Providing pre-paid return shipping labels and reusable packaging for exchanges and returns reduces return shipping costs. This encourages customers to return products using the most affordable shipping option.
Compare Carrier Rates
Don’t rely on just one carrier. Regularly compare rates between USPS, UPS, FedEx and others. While Certified Mail Label postal rates work well for letters and smaller packages, you may have to shop around for the best parcel rates.
Options like UPS, FedEx, DHL and regional couriers can provide very different pricing and delivery speeds depending on the origin, destination, package weight and dimensions. Checking rates across 2-3 carriers on a per package basis can lead to significant savings over relying on just one provider.
Businesses should also take advantage of discounted shipping programs offered by carriers to receive the best rates. Testing different carriers with sample shipments allows businesses to assess reliability, tracking services and compatibility with their operations before committing to any single provider long-term.
With some innovative strategies and smart packaging decisions, SMBs can optimize shipping costs. Taking the time to analyze packaging expenses, needs and alternatives pays dividends in reduced rates long-term.