Saving money on shipping – one of our biggest expenses

One of the biggest expenses that we have in our business is shipping. Between the boxes, the packing material, and the postage, a lot of our profits were leaving before we even saw them. I have learned a lot of ways to make things cheaper since we started buying bubbles and boxes at Walmart and shipping at the desk at the Post Office.

The first thing that I usually like to tell people about when I learn that they sell things from their home is Stamps.com. I was very frustrated getting started in this business because I was spending a fortune on shipping. I tried comparing UPS to USPS, but it seemed like the Post Office was cheaper. While I was researching ways to save money on shipping, I found Stamps.com. I was immediately impressed. The thing that I enjoy the most is the free delivery confirmation. Each time I sell something on Amazon or Ebay, I had to pay for delivery confirmation. At $0.85 a piece, it was cutting into our profits quite a bit. We sell on average right now between 5-15 orders per day. That was $4.25 to $12.75 pr day in delivery confirmation fees alone. When we learned that Stamps.com was $15.99 a month, we knew that the cost was more than paid for by the delivery confirmation fees alone!

They also give you a discount on the price that you pay from shipping at the front counter at the Post Office. I have not run specific numbers to share, but I do know that the rate is significantly cheaper.

When I signed up, they gave me the option of a free 5lb shipping scale, or I could pay 25$ for a scale that could weigh up to 25lbs. I chose the larger scale, as I ship out Xbox 360’s and PS3 consoles. I recommend that if you are sourcing things at thrift stores and yard sales like we do, that you go for the larger scale. They have a four week free trial, and give you 5$ to start in free postage. You also get vouchers for $20 in free postage for use after your trial period ends.

The scale was very easy to setup, installed the software and plugged in the USB. We started by printing 4 labels to a page, and taping them onto our packages. It is a convenient way to start. Once we had gotten a little money back from starting out, we invested in a DYMO Label Writer 450 Twin Turbo label printer, 71 Labels Per Minute, Black/Silver (1752266)
printer. With their 3-part labels, it makes it very fast and convenient to print the labels with the tracking information at home.

The software allows you to do a lot of things that reduce the amount of time that we spend packing and shipping. You can buy your insurance, change your delivery options, and customize your return address. One of the best things about it is that you can perform batch imports. What that means is that you can link your Amazon and Ebay accounts directly to Stamps.com, and they will import all of your orders at once. You pack the item, place it on the scale, and click the weigh button. Then it calculates the amount of shipping that is required, allows you to choose the shipping option that is best for you, and even allows you to hide the amount of shipping that you paid! Once all of the items are weighed, click print and all the labels come out at once. Then you can print a single form, called a batch form. The Post Office scans this form, counts your packages to make sure that they are all there, and you are done!

I know this sounds a little like a commercial, but this service has saved us hundreds of dollars this year alone. There are a few things that could use some improvement.

Sometimes the batch form does not print. Not sure why, but that means that you need to have every item scanned individually at the post office. Not a huge deal, but kind of annoying.

Some addresses won’t play nice with the software. Again, it doesn’t happen very often, but when it does it can be frustrating.

Overall, I think that using this service is one of the smartest things that we have done so far as far as saving us money on our costs. I encourage everyone that is doing this business to at least use the trial period. If you ship more than 18 orders a month, you will break even on the confirmation costs alone. The discount on the postage is pure profit! Not to mention the time that you save. In my opinion, scaling is very important. Scaling is the ability to handle an increase in orders. The more orders you can handle quickly and efficiently, the more time you spend managing your business instead of it managing you. Hope you enjoyed the tips. Let me know what you think of this article or anything else you would like to know about. Mail us!

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