If e-commerce is a staple of your business model, shipping and handling costs can keep you up at night. For any business, especially an e-commerce-driven company, overpriced shipping could send profit margins plummeting.

Take a t-shirt company, for example. The price per shirt is $7.50, and they charge $15. If it costs $5 per shirt to ship, they’re gaining $2.50 in profit per shirt. For a small business trying to grow, the revenue of $2.50 per shirt is practically nothing. If you want to avoid over-priced shipping, here are a couple of ways to cut your costs.

Switch to Poly Mailers

If you sell less fragile items like clothing or marketing materials, shipping via polybags or in a mailer envelope is a great way to make room in your budget because they weigh considerably less than boxes. Using this mailing strategy also requires less tape, bubble wrap, and other shipping materials, which can save you even more money.

Recycle Gently Used Supplies

Saving all the packing materials you receive from suppliers is another great way to cut costs. When unpacking the materials or goods from suppliers, gently cut the tape, wrap all the materials together, and close the boxes. This way, you can recycle shipping materials and significantly reduce your packaging costs.

This list isn’t exhaustive by any means, but they offer a good starting point to cut costs. If you need inspiration, reach out to your local entrepreneur community, as you’d be surprised how innovative business owners can get! If you’re an AFEUSA member, you can find even more savings when utilizing your exclusive UPS discount.

Article by
Wayne Goshkarian,
Senior Advisor

Wayne Goshkarian in front of his jet