Reducing Shipping Costs
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Anyone in the import and export business will tell you that one of their largest costs are shipping costs. There is no way to avoid paying for shipping. It is simply something you have to factor into your business. Though they are unavoidable there are ways to minimize shipping costs. Today we are going to give you a few ways to do so.
To begin, use air freight only when needed. Goods that are not time sensitive can be shipped by sea and land freight. Doing so will save you a lot of money. A $200 ocean shipment can cost you $1,000 by air. Shipping by air can also be tricky because airlines have stricter regulations when it comes to shipping certain materials.
Another easy way to save on shipping costs is to buy larger quantities of raw material (if you can afford it). If you do not get the lowest price per item, you will be amazed at the cost that is spread to every commodity. Also, the price of freight is determined by the weight of the goods. When the goods are transported, the more goods, the cheaper the freight. Although this freight cost looks higher, the cost per unit of shipping is lower.
The last thing you should consider when shipping is optimizing your packaging. As mentioned before freight charges are based on the weight or volume of the goods. Shipping extra packaging will not only cost you in package material but also in terms of lost cargo space. If you can optimize by reducing the volume you are using then you will end up saving loads of money. By optimizing packaging, you can save on packaging materials, raw materials, warehousing, and of course shipping costs.
There are many avenues you can take when it comes to minimizing your shipping costs. You just have to find the one that works best for your business.
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