10 Tips for Reducing Product Storage and Shipping Costs

stacked bulk bags in a warehouse

When you run a business, it’s essential to ensure customer satisfaction. One way to maintain high customer satisfaction is with fast shipping. Many customers expect companies to fulfill and deliver their orders within a few days. However, expedited shipping costs can soon get out of hand. Thankfully, there are methods you can use to reduce your shipping and storage costs and still maintain customer satisfaction.


10 Tips to Reduce Shipping Costs and Product Storage

Reducing shipping and storage costs is always worthwhile, and you can put the money you save toward other aspects of your business. Check out these ten simple tips on how to save on shipping costs for small and large businesses!

1. Use Bulk Bags

Cardboard boxes aren’t the only packaging material. Flexible intermediate bulk containers (FIBCs) or bulk bags are a cost-effective and durable shipping solution. They can store and transport a variety of materials, like grains, agricultural products, fertilizers, pharmaceuticals and building materials. Bulk bags reduce shipping and storage costs with their:

  • Storage capacity: These bags have various sizes and styles to store many types of products. Their typical load weight is between 1,000 and 5,000 pounds.
  • Weight: The shipping container’s weight factors into the total shipping costs. Large containers are heavy and more expensive to ship. But bulk bags are lightweight, so they cost less to ship.
  • Durability: The durability of bulk bags allows them to handle heavy-duty shipping environments. They don’t need packaging material or pallets to protect goods, eliminating this unnecessary weight.
  • Stackability: Bulk bags are stackable, so you can maximize the space available in your warehouse. When they’re not in use, they collapse for compact storage.

2. Lower the Package’s Dimensional Weight

Carriers charge shipping based on the package’s greater weight — dimensional or actual. The package’s dimensional weight is the amount of space it occupies in relation to its actual weight. You can lower your dimensional weight by packing more efficiently. Packing more efficiently means you choose the right-sized box for your product and reduce infill.

3. Avoid Expedited Shipping Costs

Many customers expect you to ship their orders quickly, usually within two days. Companies must pay for expedited shipping to meet this expectation. But, instead of paying for expedited shipping, you can establish a warehouse or fulfillment center in a central location. Determine where the majority of your customers are and choose a site that allows ground carriers to reach them in two days.

Another way you can avoid expedited shipping costs is by packaging your orders quickly. If it takes several days to pack and ship your orders, carriers may be unable to deliver them on time. 

4. Consolidate Your Shipments

Only shipping your products as needed uses more boxes and costs more than bulk shipments. For example, shipping a 20-pound container costs more upfront than shipping a 10-pound container, but you save money over time. Scheduling bulk shipments also ensures you ship time-sensitive orders faster.

Invest in third party tracking and insurance services

5. Invest in Third-Party Tracking and Insurance Services

Investing in tracking services makes the carrier responsible for delivering the package at the promised date. If an order is missing or delayed, you can look at the tracking details. You can also allow your customers and partners to view the tracking information. 

It’s also crucial to invest in shipping insurance. Shipping insurance makes carriers reimburse you if a package is missing or damaged. Tracking services and shipping insurance might cost less from a third party.

6. Negotiate With Carriers

Businesses that ship products in bulk can negotiate with carriers to secure discounts. Every carrier offers discounts on shipping volume. The more you ship, the better the discount. But, even if you don’t have a large volume of shipments, you can try to negotiate a loyalty discount. 

If you have an e-commerce business, your order fulfillment company might be a bulk shipper. In that case, you can ask them to share their savings. However, you should only seek lower shipping costs if they won’t extend delivery times or affect your shipping solutions.

7. Consider Prepaid Shipping

You can purchase prepaid shipping labels if you consistently ship orders with the same weights and dimensions or know your orders beforehand. Prepaid shipping labels save you money on upfront shipping costs. They also save you time because you can package and label your product in-house, then ship it out.

8. Implement Modern Software

Cloud-based systems can streamline your process, improve customer satisfaction, and reduce costs, returns and stockouts. These systems are available to handle orders, shipments, returns and warehousing. They can accurately track inventory levels, determine buffer stock and set a reorder point and quantity.

9. Check Out Discounted Shipping Supplies

Large shipping companies may offer discounted or free packaging supplies to commercial enterprises. These supplies include packaging materials like dunnage, bubble wrap and peanuts that you purchase in bulk. When you buy these supplies in bulk, you receive a discount and save money.

10. Consider Hybrid Services

Logistics companies offer hybrid services that might be cheaper in some situations. The carriers will pickup the packages and ship them to the post office closest to their final destination. Delivery time is slower with this method, but it may help save on shipping costs for smaller items.

Save Money Using Recycled Bulk Bags

Buying recycled bulk bags is an excellent way to reduce shipping weight and costs. When you purchase used bulk bags, you extend the bag’s life and save money on the extra expense of new packaging materials. Additionally, you can reuse bulk bags, so you don’t have to repeatedly purchase new packaging material.

Bulk bags are lightweight, so they’ll save you on shipping weight costs. Refurbished bulk bags are more affordable than new ones and offer the same quality and safety assurances. You can also save money by purchasing bulk bags in bulk. The cost of each bag will decrease as you order more. So, you’ll get more for your money at the lowest price per bag. Additionally, you’re helping the environment by reducing packaging waste in landfills.

trust bulk bag reclamation for quality bulk bags

Trust Bulk Bag Reclamation for Quality Bulk Bags

Purchasing recycled bulk bags is the best way to reduce packaging costs. These durable bags can safely transport any goods at a lower price. Bulk Bag Reclamation can help you choose the perfect bag for your inventory. All our high-quality, refurbished bags meet industry and environmental standards. They never transport toxic substances, so you don’t have to worry about contamination. 

We ensure our bags are safe for transporting, shipping and storing goods. Our bags come in various sizes, shapes and carrying capacities to meet your needs. View our inventory online or request a quote today!