I know there’s probably not many of you who run a small business that involves posting parcels out to your customers but more and more these days, people are starting to make money by re-selling bargain buys on sites like eBay. This post should help you guys out, if you have no need for parcel deliver information then I strongly recommend this post as you can never go wrong with cake. 😉
The phrase “a penny saved is a penny earned” definitely rings true for small business owners. Even the smallest saving made can make a difference to their balance sheets, possibly turning a small loss into a small profit. Looking for discounts here, there and everywhere can take a little effort, particularly for delivery costs.
In the 2015-16 financial year, the volume of parcels delivered in the UK rose by 12% year-on-year. A lot of that growth is because more of us are doing our shopping online, rather than on the high street and because the re-selling market is growing as people are looking for new ways to make money. If your business gets a lot of its custom online, you’re bound to be reliant on delivery firms to get your products to customers’ front doors.
This is why it’s really important to get value for money from every single delivery your business needs. Comparing what each courier can deliver for a set or one-off price can add up to significant savings, but how can it be done?
Most businesses that need to deliver their goods will be at least partially reliant on a major courier firm. There are a few that operate in the UK, delivering letters, parcels or a mix of the two. The big delivery companies will do one of two things when informing customers of their prices.
The first is that they will clearly list their prices for different types of delivery, for packages of different sizes. If they don’t do that, they will give you a quote, asking you to request one. This doesn’t take a lot of effort – all you need to do is know how big your package for delivery is and where you want to send it to.
After receiving that information, the delivery firm will come back with a quote. Do this for two or more couriers to see what, if anything, you can save. There are, however, other options such as bulk delivery where you can see any savings begin to add up.
If you are delivering in bulk, the amount spent per package on delivery will instantly go down. Whether it’s for several of the same item e.g. plastic buckets or for many items of different sizes, having them be part of the same order saves in all sorts of ways. Using a UK courier service for bulk delivery reduces the amount spent on fuel and the number of journeys taken.
By not using as much fuel or travelling as long, the savings made by the delivery company will be passed on to you. Going down the bulk delivery route is the most sensible option if your business has a lot of customers in the same town or region. In one trip, they could take on dozens of deliveries, all without going back and forth from the depot.
Another area where businesses can cut their delivery costs is through choosing when to deliver. Demand from customers for fast deliveries is high, but so is flexibility. Same-day and next-day deliveries are typically more expensive than standard deliveries. However, even choosing same-day delivery in the afternoon rather than first thing in the morning can slash costs.
Being a little more patient can be useful for the customer as well as your business. If you offer a lower premium for delivery in the afternoon, a few quid saved will make their order seem more affordable. Waiting a couple of days can bring costs down even further.
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