In this digital age, delivering cost is one of the vital aspects of your business. In recent times, the shipping cost has risen significantly, majorly due to rising fuel expenses. However, higher shipping costs affect your business, resulting in bad shopping experience and eventually high delivery costs for customers. So as retailers, you need to redesign your shipping process to reduce the cost of delivering products. For online businesses, knowing the strategies to reduce delivery costs can benefit them hugely. There are many e-commerce logistic companies such as handover, which have strategically made the delivering process cost-effective. If you are facing the financial burden due to expensive shipping costs, this article is for you! Here we will explore how to calculate the shipping cost and remedies to reduce them. 

How to Calculate Your Delivery Costs?

Several factors help determine the shipping cost of products, such as package size, weight, destination, value, and shipping type. The following are some factors that help in reducing shipping costs. 

Package Size

Package size is an important factor influencing shipping costs. Need to send small size products but you waste too much packaging material when packaging them? Don’t waste it, as it will occupy a large space of your vehicle and stop you from dispatching more products. Whereas, using an optimised packaging process will allow you to accommodate a wide range of products and send them to their destination in one go. You will save both your time and money following the same.

Customers’ Location

Customers’ location is an important aspect that determines the delivering costs. For instance, if the customer’s location is somewhere that insists you take a long route, your delivery costs will increase due to potentially increased fuel consumption.  

Effective Strategies to Reduce Delivery Costs

1. Use Your Resources Efficiently

You need to develop a master plan to carry out the perfect cost-saving technique. If you want to lower the delivery expenses for your business, you must use every second since time is money. To keep delivery expenses under control, you need to make sure optimised loading of products on the proper vehicle at the right time. Also, make sure they are delivered through a smooth delivery procedure. And this is possible when you are connected with every person involved in product deliveries. 

2. Use Advanced Route Optimization 

It is difficult for both customers and retailers to not know what is happening with the orders. So, logistics management companies started using reliable delivery management via an AI-powered software route optimisation. It helps delivery executives to find the shortest route possible to reach customers as soon as possible. Furthermore, the software helps create a geographical area of operation for delivery executives, so they won’t have to waste time and resources balancing their delivery process to find a suitable way. Failure to use this technology trend will likely increase additional costs on fuel and workforce. 

3. Automate Your Dispatch Process

 If you continue to manually dispatch each order your delivery teams may experience a burden whenever a new order enters the system, you need to implement an automated dispatch system. More so if you want to expand your delivery operations.

With the help of a delivery management company like handover, you can automatically assign new orders to your delivery executive, who can accommodate them without any further manual intervention. 

4. Choose a Delivery Partner Who Uses EVs

Traditional vehicles consume fuel for delivery operation and add to  delivery costs. If you enhance costs per delivery, it can make your customers disappointed. handover, a leading logistics brand, has already started using Electric Vehicles (EVs) for delivering goods to customers. EVs are cost- effective due to their fuel-less operating system. Furthermore, traditional vehicles require services and maintenance for smooth functioning. On the contrary, EVs run on batteries and their charging cost is much lower than traditional ones. As retailers, you can partner with any third-party delivery company who uses EVs as a delivery transportation mode. This will likely reduce your delivery costs. 

5. Look for Reasonable Delivery Service Rates 

There are many logistics companies in India who offer reasonably low cost delivery services to retailers. So, find out who offers the same. Try to bargain with logistics companies. As we know, there is significant growth in logistics companies, and they are competing with each other. So, they can offer impressive delivery services at a reasonable cost. 

Conclusion

Nowadays many businesses and their customers stay worried seeing enhanced delivery costs. They often search for low delivery cost services. Using these 5 strategies can help you reduce delivery costs. handover can help you reduce your delivery costs by customising its delivery management as per your needs. Contact Now!