5 Ways to Save Money on Delivery Costs

Jul 15

5 Ways to Save Money on Delivery Costs

Whether you are an eBay seller in your spare time, or you run an ecommerce business, delivery costs are a regular expense. While many businesses look at delivery costs as essential expenditure, and few look at efficient ways to make savings, it is possible to cut the cost of packaging, sending parcels, and even posting letters.

1 – Investing in a Franking Machine

A franking machine does require some capital investment, but if you send a lot of first class letters, then you can quickly make this money back. You can also add your logo to the frank mark itself, heightening your branding, and you can save time on trips to the Post Office, therefore saving even more money.

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2 – Set Realistic Delivery Charges

Excessive delivery charges and restrictive delivery times will put some of your potential customers off, but not everybody expects free next day delivery. Set reasonable deadlines and include charges for any premium delivery options. For example, three day delivery may be included in the price, while next day or two day delivery charges can be levied. Set your delivery charges so shoppers know what to expect, and then stick to them.

3 – Get the Best Delivery Deals

Not only should you ensure that you are using a reliable delivery service, but you should do everything possible to get the best delivery deals. Bulk orders, repeat orders, and agreeing regular schedules can all save money when agreeing prices with courier services like TNT Direct.

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4 – Purchase Bulk Packaging

From the envelopes you stuff letters into, to the boxes and even the polystyrene chips that you cushion items with, you should shop around to get the best deal. Usually, the best deals will be afforded to those that buy in quantity so if you can buy a month of packaging in one go then you will save cash. You can even consider recycling packaging goods. Shred waste paper, reuse envelopes, and find other ways to recycle and save money.

5 – Reclaim VAT

If you’re a taxable business, then you can claim back the VAT that you pay on delivery costs as well as packaging products. If you’re a sole trader that sells on eBay then don’t forget to include the costs in your business expenses when you complete your annual self-assessment return. It may not seem a lot for a single delivery, but when added up over the whole year, the total that you can save in taxes does add up.

Whether you sell one item a week, or hundreds, you can reduce expenditure and potentially increase profits by cutting the costs of packaging and delivery for your business.