In a survey conducted in 2019, more than 64% of US respondents said that cost is the most important factor associated with shipping. Additionally, 28% of respondents said that they are more likely to order something if it arrives within a week. With shipping costs rising to an all-time high, guaranteeing fast and affordable shipping can be challenging for small cosmetics businesses.
If you’re wanting to cut down costs in your private label beauty business this year, shipping is one area where you can make changes. Whether it be finding cheaper materials, improving your packing skills, or negotiating rates with couriers, we are here to help!
1. Find cheaper supplies
Although this might be intuitive, finding the cheapest shipping supplies is the first thing you can do to minimize your spending.
To start, create a table comparing costs for your most commonly used packing items such as boxes, mailers, and packing fillers. Most office supply stores offer the same standard packaging products, so make sure you are choosing the cheapest option!
Next, when purchasing from your supplier, try to buy in bulk to save more! Although this can be an expensive upfront purchase, you will save more money in the long run. This is especially true if you find yourself using the same parcel size over and over again.
💡 Blanka Tip: Use poly mailers whenever you can! These are a lighter, smaller, and lower cost way to ship your beauty products. They’re also a more versatile option than using boxes because of their ability to resize to your needs. You can often find biodegradable options at the same or even less cost, too! 💡
Finally, did you know that popular shipping services such as FedEx, DHL, and USPS provide free shipping supplies? The best way to save money on supplies might be to not pay for them at all! These freebies are often provided for business account owners and can only be used for the respective courier.
For those using Shopify, there are also numerous apps available that can help you find the best shipping rates for your products.
2. Pack more efficiently
It’s no secret that shipping is based on the dimensions and weight of your packages. To cut costs, it’s vital to choose the right size packaging for your products so you are not paying for unused space. One solution to this problem is having a range of package sizes on hand to make sure you are not settling for a bigger box than necessary.
If you have void space in your box or need extra cushioning around your products, try using the lightest filler you can. Some filler options include bubble wrap, foam wrap, paper, and crinkle paper. Cosmetics companies need to use a lightweight but strong filler to keep fragile products (like makeup palettes) safe.
3. Negotiate rates with couriers
When you create a business account with most shipping companies, you will have access to shipping rate discounts. These are usually calculated based on your annual shipping volume. Often, these operate on a tier system where you can achieve more significant savings with higher shipping volumes.
To maximize these discounts, you could limit yourself to one courier in order to reach target shipping volumes. However, be sure to conduct an analysis beforehand to see whether opting to sometimes pass up cheaper options in the short term is worth the discounted rates of one courier in the long run.
Alternatively, try exploring shipping services outside of major couriers. Typically, you can find third-party platforms that offer discounted shipping through popular couriers. To find the best rates for your parcels, use a shipping comparison site to help you choose.
For example, Envia Shipping offers domestic and international shipping services with up to 70% discounted rates to get to those harder to reach destinations that perhaps your local courier can’t ship to.
4. Use a dropshipping service
If your primary customer base is located in another country, consider storing your inventory closer with a dropshipping provider. For example, Blanka is based in North America and can provide cheaper and faster shipping for overseas merchants who want to sell their beauty products in Canada and the US. Not to mention, opting for dropshipping saves you valuable time in that you don’t have to fulfill orders yourself! You can save and redirect your time towards selling more products or focus on other aspects of your private label beauty business.
5. Test out a new shipping strategy
There are many shipping strategies you can use to negate your shipping costs, as previously covered in our blog post on ecommerce best shipping practices. Popular ecommerce shipping methods include flat-rate, minimum order for free shipping, and having shipping cost included in product price.
To save money, you might want to adjust your shipping strategy for international orders. For example, some merchants encourage a minimum order for free shipping to certain countries so profit margins on products can account for the expensive shipping costs when sending overseas.
Additionally, if you choose to include the cost of shipping in your product price, adjust your prices annually to follow increases in shipping rates. With this method, you can give the illusion of having free shipping while still keeping the same profit margins.
Shipping is one of the areas of business that can be expensive. Luckily, many solutions exist so you can make more money selling your private label cosmetic line!
If you’re wanting to reduce your spending when shipping, try opting for cheaper supplies, packing more efficiently, finding the best shipping rates, dropshipping with Blanka, and testing out different shipping strategies to find what works best for your private label beauty business.