If you run an online business like www.smokingthings.com, you know that shipping costs are one of the main things that eat into your profits. No matter what parcel service you are using, you are likely incurring high charges each time you need to ship something. Offering free shipping can be a great marketing tool, but it has to be compensated by raising your prices across the board. It is important that you establish ways to save on shipping so that your profits can be maximized.

Offer Curbside Pickup for a Discount

Curbside pickup is an easy thing to do. A person places their order online, and you set the merchandise aside for them. When they arrive at your store, they simply call you, and an employee carries the package out to them. You do not have to worry about printing shipping labels, and this can save you a ton of money. You can offer a discount on the total order if the customer chooses curbside pickup. You will not be using your profits towards shipping costs; instead, you will be making your customers happy and more likely to return to you.

Provide Local Delivery

It can be less expensive to deliver things in your local area on your own instead of paying for them to ship. You can set a certain mile radius in which you will deliver merchandise ordered online. Just make sure that you establish a good drop off day and time for the customer. One of your employees can leave every day to make the local rounds. You will have to pay a little for fuel, but this cost will be much less than the cost of shipping all of those packages.

Charge More for Rush Shipping

Rush shipping can increase your costs on parcel delivery greatly. Even if you offer free standard shipping, you should charge extra for rush shipping. Not only do you have to fulfill the order faster, you are incurring a charge that greatly dips into your profits if you are not receiving compensation for it. When customers really need a product in a hurry, they might decide that curbside pickup is a better option than paying for rush shipping.

As a small business owner, it is important that you are always looking for ways to reduce overhead costs and increase overall profits. Consider how cutting back on shipping costs could affect your overall bottom line.