How To Save Money on USPS Shipping: US Postage Changes & Ecommerce Fulfillment

Keeping up with postal rate changes is an essential practice for businesses that are trying to maximize profit, especially considering the e-commerce industry is an ever changing and highly competitive environment. In this article, we’ll discuss the projected postal changes in the United States, the order fulfillment difficulties that may arise for businesses, and how to save money on USPS shipping.

How US Postage Rates Are Changing in July

The USPS has announced that postage rates will continue to increase, with the next adjustment projected to occur on July 14, 2024. Among these adjustments is around a 7.8% increase in cost for different mailing services: $0.68 became $0.73 for a First-Class Mail Forever stamp; $0.64 became $0.69 for a metered 1-ounce letter; $0.53 became $0.56 for 1-ounce postcards; and $0.10 became $1.65 for international postcards and letters.

Potential Challenges

Shipping Costs

As postage rates increase, businesses must decide whether to take on the additional costs themselves or pass them on to customers. Taking on those costs has the potential to significantly reduce profit margins, particularly for small or medium-sized businesses that may not have the bargaining power to negotiate better rates with their carriers. However, passing these costs on to customers can potentially reduce sales and give businesses less of a competitive edge. 

Package Sizing

The dimensional weight pricing by the USPS can also warrant a re-analysis of packaging strategies to minimize shipping costs. DIM weight prices calculate shipping costs based not only on the weight of the package, but on its volume. The overall weight and design of your packaging could be increasing your shipping costs. 

Customer Expectations

As you are likely aware, customers look for fast, free, or low-cost shipping options, which puts pressure on ecommerce businesses to offer competitive shipping rates while maintaining the quality of the package. Balancing these expectations while also considering how to save money on USPS shipping can be difficult, and failure to meet customer expectations can lead to negative reviews and a loss of repeat consumers.

How Ecommerce Fulfillment Can Help

To help you navigate through these challenges, we’ve come up with several strategies that businesses can take into consideration when evaluating their ecommerce strategies.

Use Fulfillment Centers

Partnering with fulfillment centers that have negotiated bulk shipping rates can save you a lot of profit margin in the long run. These centers can often pass on the savings to you, reducing your overall shipping costs, saving you the time that you may have had to spend comparing, and making it easier for you overall! 

Fulfillment centers won’t just save money, they’ll simplify shipping and logistics, giving you more time to concentrate on the other facets of your company. They also provide comprehensive inventory management systems for precise stock tracking, scalable solutions to match the growth of your company, and expedited shipping times.

Additionally, fulfillment centers allow you to have flexible storage options, thorough return management, and access to the latest technology and logistics expertise. By working with a fulfillment center, you can cut operational costs, improve efficiency, and enhance customer happiness.

Learn more about your ecommerce fulfillment options with Wolff SMG.

Looking for a more do-it-yourself option? There are some additional ways that ecommerce businesses can help off-set some of the increased shipping costs. 

Optimize Your Packaging

Using the smallest and lightest packaging possible without compromising the protection of your product during delivery. Investing in custom-sized boxes and packing materials can help reduce DIM weight charges. Redesigning your product packaging to reduce its overall size or finding ways to obtain cheaper packaging may also be a logical option for some businesses. 

Compare Your Delivery Carriers

Establish relationships with multiple carriers, including USPS, UPS, FedEx and even the lesser known sources! This allows you to compare, and potentially negotiate for discounted rates based on your shipping volume. Many carriers can offer lower rates for businesses that ship frequently.

Offer Multiple Shipping Options

Provide your customers with a range of shipping options at checkout. Allow them to choose between faster, more expensive shipping and slower, cheaper options. This flexibility can help manage customer expectations while feeling like they have more control over the cost.

Utilize Shipping Software

If you haven’t yet, invest in shipping software that compares rates from different carriers in real-time. This technology can help you select the best and most cost-effective shipping option for each order.

Monitor Postage Changes

Make sure you stay informed about upcoming postage changes and adjust your pricing and business strategies accordingly. Subscribing to industry newsletters and following USPS updates, business centered marketplace offers and more can help your business stay ahead of the curve!

For e-commerce based businesses looking to save money, navigating these postal changes and creating plans to overcome these obstacles are crucial. With proper consideration, you can figure out how to save money on USPS shipping, and find e-commerce fulfillment methods for your company. These strategies will ensure your company stays competitive in a market that is constantly evolving. To make things easier for you and your business, consider reaching out to Wolff SMG for effective and affordable e-commerce fulfillment services.

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Keeping up with postal rate changes is an essential practice for businesses that are trying to maximize profit, especially considering the e-commerce industry is an ever changing and highly competitive environment. In this article, we’ll discuss the projected postal changes in the United States, the order fulfillment difficulties that may arise for businesses, and how …

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