Here are some crucial statistics:<\/p>\n\n\n\n
- Nearly 33<\/strong>% of consumers in Canada agree that delivery times could reasonably vary based on the type of the product. <\/li>
- 19<\/strong>% of Canadians expect to receive their orders in 2 days or less.<\/li>
- 25.5<\/strong>% of Canadian customers are okay with paying up to $10 for shipping. <\/li>
- 53.2<\/strong>% of consumers expect free shipping in Canada<\/a>. <\/li>
- 68<\/strong>% of Canadians think free shipping is a key reason when choosing a retail website. Still, 69 percent of them are ready to pay for faster delivery.<\/li>
- 55<\/strong>% of shoppers in Canada abandoned shopping carts because the retailers were not offering free delivery.<\/li><\/ul>\n\n\n\n
It is clear from the stats that small businesses in Canada are under pressure to provide free or discounted shipping. However, they also have to cover the shipping cost keeping the profit margin. <\/p>\n\n\n\n
You can increase your product prices to a limit only. It means you need effective ways to reduce shipping costs. Let\u2019s discuss how.<\/p>\n\n\n\n
Fundamentals of Shipping for Your Business<\/strong><\/h3>\n\n\n\n
Managing shipping costs can be a formidable task for small businesses in Canada. Considering the stiff competition and customers\u2019 expectations for free or cheap shipping, you have to find ways to keep shipping costs under control. <\/p>\n\n\n\n
But how?<\/p>\n\n\n\n
As soon as you hand over the packages to a shipping carrier, they are out of your control. The shipping company will then be responsible for delivering your orders on time and in perfect condition.<\/p>\n\n\n\n
Also, carriers are increasing shipping costs frequently. So, it all boils down to shipping fundamentals where you need to take proactive actions to minimize shipping costs.<\/p>\n\n\n\n
Carriers decide shipping rates based on the items and the following elements:<\/p>\n\n\n\n
- Shipping containers\/boxes, packaging, tape, and labels<\/li>
- Labor for loading and sending packages<\/li>
- Carrier costs for picking up and delivering packages<\/li>
- Import\/export fees when shipping overseas.<\/li><\/ul>\n\n\n\n
As a retailer, you should ideally disclose shipping costs on your website to be transparent. Remember that the most common questions eCommerce stores receive are about shipping.<\/p>\n\n\n\n
To deal with this, you should create a clear shipping policy, setting customer expectations about costs and delivery timelines. <\/p>\n\n\n\n
Although you can\u2019t do anything about the local sales tax on your products, there are still ways you can lower shipping costs.<\/p>\n\n\n\n
Besides, ensure the carrier you choose provides a free tracking facility so that customers get to know about the status of their orders. <\/p>\n\n\n\n
5 Ways to Reduce Shipping Costs for Your Small Business in Canada<\/strong><\/h3>\n\n\n\n
The cheapest shipping for small business Canada doesn\u2019t mean cutting corners. It means making smarter choices\u2014from packaging to carriers to automation. Managing your shipping needs isn\u2019t about just reducing costs, but optimizing the whole process.<\/p>\n\n\n\n
When a package leaves your hands, it\u2019s in the carrier\u2019s control. And carriers are constantly tweaking shipping rates, often upward. But with a little strategy, you can stay ahead of the curve and offer shipping solutions that boost both customer satisfaction and your bottom line.<\/p>\n\n\n\n
1. Use Lightweight Packaging<\/h5>\n\n\n\n
When shipping packages to customers, costs will vary based on the package weight. The larger and bulkier the actual weight or dimensional (DIM) weight, the more it is going to cost.<\/p>\n\n\n\n
Although it may only be a few cents higher per package, think about adding up those few cents for a high volume of parcels. Due to this, lightweight boxes are ideal for reducing shipping costs and increasing profit margins.<\/p>\n\n\n\n
Some of the ways to reduce package weight are below:<\/p>\n\n\n\n
Use lightweight material for packaging: <\/strong>You can pick from various types of packaging material available instead of heavier ones. <\/p>\n\n\n\n
Some of the lightweight options could be packing paper, air pillows, foam inserts, bubble wrap, Versa Pak wadding rolls, and excelsior. The purpose is to make the shipping containers tight and reduce their weight.<\/p>\n\n\n\n
Use corrugated boxes to pack items<\/strong>: You can use corrugated boxes, which are sturdier and lighter in packaging than standard cardboard boxes. These boxes come with rows and little air-filled grooves between the layers.<\/p>\n\n\n\n
Here is an example of light packaging by Benny Gold, a well-known streetwear label:<\/p>\n\n\n\n
<\/figure>\n\n\n\n
Benny Gold Packaging (Source<\/a>)<\/p>\n\n\n\n
Lightweight packaging can save you several ounces during each shipment. Over a period, this could add up to sizable profit margins and make a good return on your invested time and resources.<\/p>\n\n\n\n
2. Choose the Right Packaging Size<\/h4>\n\n\n\n
While trying to reduce shipping costs, another crucial thing to consider is to pick the right packaging size or customize one. <\/p>\n\n\n\n
Your shipping cost will depend on the size and weight of the package. Cardboard is heavy, and anywhere you can trim down weight will help you save costs.<\/p>\n\n\n\n
If you can customize your shipping package closer to the shape and size of your products, the less packing material you need. It will lead to lower costs.<\/p>\n\n\n\n
<\/figure>\n\n\n\n
Shipping Boxes of Different Sizes (Source<\/a>)<\/p>\n\n\n\n
Also, some good research can save you shipping costs. Several carriers provide free packaging.<\/p>\n\n\n\n
For example, major carriers such as FedEx, UPS, USPS, and DHL Express offer packaging of different sizes and give it away for free when you pay shipping costs while sending parcels under specific mail classes. <\/p>\n\n\n\n
Whether you are getting free packaging facility or doing custom packaging, knowing the types and sizes of shipping boxes you use frequently can also save you money.<\/p>\n\n\n\n
Measure all your products and estimate how many packages you typically send at once. It will help you understand which package sizes are most appropriate for the orders you ship more often. If you send individual shipments at a time against high volume, review your order history to identify which items would fit in a specific box. <\/p>\n\n\n\n
3. Use Flat-rate Shipping if Possible<\/h4>\n\n\n\n
The dimension of shipping boxes and their pricing is frequently changing, which is not ideal for your company\u2019s bottom line. It is hard to keep up with these changes.<\/p>\n\n\n\n
In 2021: <\/p>\n\n\n\n
- FedEx increased its shipping rates from $0.10 to $0.35<\/li>
- UPS increased shipping prices by 4.9 percent on average, with higher rates for larger and heavier packages.<\/li>
- The United States Postal Service (USPS) increased shipping rates ranging from 2 to 4.95 percent or more, depending on the package size.<\/li><\/ul>\n\n\n\n
Due to these price increases, online retail brands can try flat-rate shipping to reduce shipping costs. These rates remain the same regardless of the high value of the shipped items.<\/p>\n\n\n\n
As the term suggests, flat-rate shipping refers to the single-rate shipping cost, regardless of the weight, size, or shape of a package. <\/p>\n\n\n\n
The major takeaway from flat-rate shipping is the conversion of variable costs into fixed costs. It means if you ship 15 items within a specific weight range, you will know their shipping costs in advance.<\/p>\n\n\n\n
You can set the shipping rates when customers reach the checkout stage on your website. You can also create flat shipping rates for packages within a shipping zone. <\/p>\n\n\n\n
For example, for different shipping zones within the US, you can set a flat rate of $6, and for another one, a rate of $4 for orders above $60. This way, you can control the shipping charges customers pay at checkout.<\/p>\n\n\n\n
4. Choose Carriers that Offer Affordable Shipping<\/h4>\n\n\n\n
Both domestic and international shipping rates vary from carrier to carrier depending on factors, such as the types of packages you ship and the destination. <\/p>\n\n\n\n
As a retailer, you may aim to offer affordable shipping prices to your customers and have enough profit margins by saving on shipping costs. <\/p>\n\n\n\n
There is a direct correlation between customers\u2019 delivery expectations and shipping costs. Most shoppers in Canada think if you offer free shipping, the delivery speed will be much slower.<\/p>\n\n\n\n
Conversely, if you offer faster shipping options with higher rates, they need to be fast so customers will be ready to pay for them. <\/p>\n\n\n\n
Also, before the peak holiday season, post a notice like \u201cLast day to order to receive them before December 25.\u201d It will make customers aware when they have to pay high shipping costs for faster shipping to receive orders before Christmas.<\/p>\n\n\n\n
5. Use ShippingChimp to Save Up to 53% on Carrier Costs<\/h4>\n\n\n\n
- 19<\/strong>% of Canadians expect to receive their orders in 2 days or less.<\/li>