Alamak, shipping fees got you pulling your hair out?
Don’t worry, fellow Malaysian business owners! This guide is packed with 12 hacks to slash your shipping costs and boost your profits. Let’s get started!
1. Pack Tight, Ship Smart
Every cubic centimetre counts! What you need to do is measure twice, buy once! Before purchasing boxes, measure your products to find the perfect fit. A snug box minimises empty space and wasted money.
What you can do next is consider eco-friendly alternatives like recycled paper or biodegradable peanuts to reduce excessive packing materials usage. For oddly shaped items, think outside the box (literally) to explore non-traditional packaging options like custom-cut cardboard inserts or inflatable pouches.
Packing your products properly can significantly reduce your shipping costs.
2. Get Quotes, Don’t Get Duped!
Shipping costs can vary dramatically depending on the carrier, service level, and package dimensions. The best way to ensure you’re not going to get ketuk (scammed) is to never settle for the first quote you receive. Get quotes from several carriers – both established players and smaller regional options.
Then, compare apples to apples! When comparing quotes, ensure you’re comparing similar service levels (e.g., delivery speed, insurance coverage). Don’t be fooled by a seemingly low price if it comes with a week-long delivery window.
If you have extra time on your hand, you can look for online quote comparison tools to quickly gather competitive quotes.
3. Look for Promotions and Special Offers
Staying informed about shipping promotions can be a game-changer. Though going through their websites on a monthly basis is time-consuming, what you can do instead is sign up for email alerts from your preferred shipping companies to stay updated on special offers, like free shipping days or discounted rates for specific regions.
Following their social media is a great alternative too, as many carriers announce promotions and flash sales on their social media platforms. For example, Ninja Van often announce their latest promotions on their social media, making consignors feel more informed of their marketing initiatives.
And let’s say you’ve scouted bulk shipping discounts, always negotiate if you anticipate a high volume of orders during a specific period (e.g., Hari Raya, Chinese New Year).
4. Free Shipping? Yes Way! (But Strategically)
Free shipping can be a powerful marketing tool to incentivize customers and boost sales. However, it’s crucial to implement it strategically to avoid hurting your profit margins.
Here’s how to make free shipping work for you:
- Set a Minimum Order Requirement: Offer free shipping only on orders exceeding a certain amount. This encourages customers to spend more to qualify for the free perk, potentially increasing your average order value.
- Emphasise Cost Savings as an Attractive Incentive: Clearly advertise your free shipping offer on your website and marketing materials. Make it BOLD!
- Factor in Free Shipping Costs: Before you suka-suka (carelessly) offer free shipping, carefully calculate the additional cost of free shipping and adjust your product pricing accordingly to ensure profitability.
5. Flat Rate Boxes Can Help!
Flat-rate shipping boxes can simplify your life and save you money on specific types of shipments as they are a form of predictable pricing: With flat-rate boxes, you pay a fixed price regardless of the weight of your product (within a certain limit). This eliminates the need for complex weight-based calculations.
What you should know is flat-rate boxes come in standard sizes offered by the carrier. This simplifies packaging and ensures compatibility with their shipping network.
🐱👤 Ninja Tips: While convenient, flat-rate boxes might not be suitable for all products. They may not be cost-effective for very heavy or oddly shaped items.
6. Calculate Shipping Costs Accurately (Every Sen Counts!)
Talking about calculating shipping costs, accurately estimating shipping costs upfront is crucial for setting competitive prices and avoiding profit surprises. Though as an SME, it might be difficult to calculate this, especially when you’re a 5-person business, there are shortcuts you can replicate!
First is to invest in a Shipping Cost Calculator. Many online shipping cost calculators can help you estimate shipping costs based on package weight, dimensions, and destination.
Be aware of and account for any additional fees like fuel surcharges or remote area delivery charges that might impact your final shipping cost. With these, the safest way to find your way out is to add a small buffer to your estimated shipping cost to account for potential fluctuations or unexpected fees.
7. Order in Bulk for Discounts
While it might seem convenient, buying in smaller quantities can chip away at your profits.
Imagine this: you negotiate a sweet deal with your supplier for a larger order. You get a lower price per item, which translates to more savings in your pocket. But wait, there’s a catch!
You’ll need some extra storage space to accommodate those extra goodies. So, the key is to find the sweet spot – enough inventory to qualify for bulk discounts without turning your office into a warehouse!
8. Negotiate Pricing Like a Boss!
Shipping companies are more likely to give you better rates if you’re a frequent consignor (well, shipper!). The more you send, the more leverage you have to negotiate for lower rates.
Think of it like this. Loyal customers more often get VIP treatment, special discounts or better customer service, just for being a regular. For example, Ninja Van offers Ninja Rewards for their regular consignors in the form of discounts, vouchers and even redeem points in exchange for electronics and gadgets. Find out more about Ninja Rewards HERE.
So, even though you are cutting off costs, highlighting your business potential and loyalty is a great way to show that you’re a reliable customer who ships frequently, making them more likely to offer you a hero-worthy discount.
9. Consider a Shipping Agent
Think of them as your personal shopper, but for your shipments.
They have the expertise and connections to negotiate deals you might not be able to get on your own. So, though it might cost you a bit to hire them, you’ll eventually be able to get the best possible rates for your shipping needs while focusing on running your business. It’s a win-win situation!
10. Save More with Discounted Packaging Supplies
Go online into marketplaces and wholesale suppliers. You might be surprised at the competitive prices you can find for boxes, void fillers, and other packaging materials.
If you have the space for it, consider buying packaging supplies in bulk to benefit from further discounts. Just remember, you don’t want to end up with a mountain of unused boxes!
Never forget to repurpose and reuse as well! Get creative! Can you reuse some of your existing packaging materials with a little ingenuity? For example, could you use leftover packing peanuts from another shipment for your own orders?
11. Think Local: Delivery or Pickup?
Customers in your area will appreciate the faster delivery times and potentially lower costs of local options. This can be a great selling point and boost customer satisfaction.
And, believe it or not, local delivery or pickup can potentially cut down on your reliance on traditional shipping companies, leading to overall cost savings. Plus, you bypass the complexities (and sometimes delays) of long-distance deliveries.
12. Embrace the App Revolution
Gone are the days of endless calculations and manual paperwork!
With our current technology, you can utilise online shipping cost calculators and quote comparison tools. These platforms help you compare rates from various carriers in seconds, saving you valuable time and revealing hidden savings.
But once you’ve chosen a carrier, shipping apps can be your best friend for streamlining the process. Many carriers and logistics platforms offer user-friendly apps to help you manage your shipments.
Take the Ninja Biz app, for example. This handy app allows Malaysian businesses to manage their Ninja Van deliveries directly from their smartphones. With Ninja Biz, you can:
- Manage your parcels on the go
- Schedule pickups for added convenience
- Track your shipments in real-time for complete peace of mind
Download the Ninja Biz app and unlock a special bonus – 5 FREE shipments!
That’s right, get a head start on your shipping journey without any upfront costs. Plus, Ninja Van offers fresh, exclusive deals every month, so be sure to check the app for the latest promotions.
Save valuable time, reduce errors, and experience a smoother, more efficient shipping process with Ninja Biz app. Get started now!
