Basically, charges for shipping/delivery that a includes on its bill are taxable only if the product that is being shipped/delivered is taxable. The terms shipping/delivery also include charges identified by terms such as transportation, handling, or postage.
Shipping is the most cost-consuming expense, especially for small-scale businesses. It is very challenging to reduce shipping charges if your business sells physical products. Over 30% of customers cancel or abandon their cart after looking after the shipping prices they have to pay for the products they ordered. Customer satisfaction should be the first priority for any business brand. Surpassing customer expectations and satisfaction with services or products supplied always leads to gains and profits for the company. Therefore keeping customers engaged during the checkout process is through having a good grip over the shipping process.
Shipping tax or costs not only include the amount associated with shipping but also the cost required for the supplies during the transportation of products. So how small-scale businesses or startups can reduce shipping costs without any losses but can also attract and satisfy their customers?
Here are some ways to Reduce Online Shipping Costs for Small Scale Businesses :
Use a shipping calculator:
A shipping calculator is a software solution built for the purpose of making shipping rates and service details available for online users in a meaningful way. It is not too common in small-scale businesses as they shift the decision of calculating shipping costs to your customers. Many people have a misconception about losing money in this but it is nothing to worry about as no money is lost. On the bright side, many businesses have started using shipping calculators to promote transparency and clarity with their businesses. This helps customers to understand clearly why they are being charged a particular amount as the delivery cost. While assessing the cost variation of the delivery area from the warehouse shipping calculator is useful.
Standard postal services:
For small-scale businesses who are starting out recently with small quantities, it is best advised to use standard postal services for shipping. The primary function of the Post Office is the collection, processing, transmission, and delivery of mail. All postal articles whose contents are in the nature of the message can be classified as mail which includes Letters, Postcards, Inland Letter Cards, Packets, Ordinary, Registered, Insured, Value Payable articles, and Speed Post. It is a government service, the cost is low and one can also control their logistics working.
Prepaid shipping:
Sometimes, when the shipments are prepaid, shipping providers provide discounts and lower costs. This way a company can buy labels and stamps in bulk amounts and fix them for packaging even before they are ordered. This way time is consumed and the company works in an organized manner without any difficulties while shipping.
Introduce Flat rate shipping:
Flat rate shipping includes a lot of indirect values of cutting down the delivery charges. Basically, it means having a standard amount of charge no matter what the size of the product or package is, small, big, or medium. This attracts customers more and gives them a chance to order as many as products they want in the maximum amount, they are going to get charged the same. Not only that but flat-rate shipping helps promote your business’s order size.
Recycle your packaging:
This will be the perfect time to use your Eco-friendly card. Using Eco-friendly packaging material not only saves your money but also nature. The smart way to reduce shipping costs is by reusing packaging material from the returned products. Bubble wraps, shreds, and polystyrene can be recycled and used again for packages. As a bonus, this reduces your garbage and helps the environment.
Get familiar with your online shipping reps
Representatives of major shipping carriers negotiate rates and help businesses understand the entire shipping process. These agents play an integral role in completing the shipping process. It will prove beneficial for you if you search for the right representative for your business who will get discounts and the best rates. Stay in touch with these representatives to be updated about the different rates, revised pricing, and shipping rules.
