Starting an import business brings with it a host of expenses, and a key area where you can control costs is in shipping. Efficiently managing shipping fees with Alibaba can make a significant difference to your bottom line. We’ve put together these 13 practical suggestions to help you economize on shipping without compromising on service quality.
🚢 The weight of the actual products
🚢 The overall dimensions of the package
🚢 The urgency of delivery
🚢 The materials used for packaging, like boxes and tape
🚢 Labor costs associated with handling your shipment
🚢 The carrier service you select
🚢 Applicable duties and taxes
🚢 Postal Service
🚢 Air Express
🚢 Air Cargo
🚢 Ocean Shipping
Air express is expedient, delivering within 3-5 days, but it’s also pricey. Ocean shipping, though slower, is much more cost-effective for substantial shipments.
Postal service might seem risky due to potential loss or tracking issues, yet it’s economical for samples or small orders, with deliveries from China Post taking 15-35 days.
Air express, utilizing services like DHL, FedEx, or UPS, though reliable and quick, comes at a high cost, usually $5-10 per kilogram.
Air cargo suits shipments over 100 kg, needing about 10 days for delivery. The cost is slightly less than air express, around $4-8 per kilogram.
Ocean shipping is the slowest, taking up to 60 days, but it’s ideal for large or heavy loads. It also offers full-container load (FCL) or less-than-container load (LCL) options, with FCL being more cost-effective for larger volumes.
Select the Appropriate Shipping Method Your decision should be based on the cargo’s weight, volume, and required delivery speed. Sometimes, a blend of different shipping methods can be the most economical, allowing you to balance the urgency of certain goods with the overall shipping cost.
Reduce Packaging Size Minimize the size of your packaging to reduce both volume and cost. Alibaba’s shipping fees are based on both weight and volume, so more compact packaging can lead to savings.
Lighten Packaging Weight Opt for lighter materials like corrugated boxes and air pillows to reduce the weight of your packaging, which can lead to savings over time.
Partner with the Right Shipping Providers Selecting the right partners for shipping and logistics can significantly impact your costs. Be wary of low quotes as they may indicate subpar service.
Utilize Online Shipping Calculators Use online tools to get an estimate of the shipping costs you should expect, independent of freight forwarders or Alibaba suppliers.
Optimize the Shipping Route Consider all possible routes and modes of transport to find the most cost-effective combination for your needs.
Adjust Shipping Timing Plan your shipping schedule to avoid peak times, which can incur higher costs due to increased demand.
Insure Your Freight Invest in freight insurance to protect against loss or damage during transit, potentially saving you from significant losses.
Employ a Customs Broker A customs broker can help navigate the complexities of duties and taxes, potentially reducing overall costs.
Consolidate Shipments Combine smaller orders into one larger shipment to save on per-unit shipping costs.
Designate Custom Shipping Zones Understand the cost implications of shipping to different countries and set your shipping rates accordingly.
Understand Your Incoterms Learn about Incoterms to determine the most favorable terms for your shipping arrangements.
Offer Local Delivery Options Consider local delivery or in-store pickup to bypass shipping costs and strengthen customer relationships.
For businesses with established shipping processes, taking control of shipping logistics can offer the most significant cost benefits, allowing for personalized negotiation and optimization of shipping expenditures.
