As companies aim to stay competitive in today’s business landscape, reducing costs without compromising on quality or customer service grows increasingly vital. One area where UK companies can find significant savings is in packaging and shipping operations. With some strategic planning and process improvements, businesses can reduce these expenses and boost their bottom line.
Utilise an FBA Prep Centre
One of the best ways for UK companies selling on Amazon to reduce fulfilment fees and packaging costs is to use an Amazon FBA prep service UK. Amazon FBA (Fulfilment by Amazon) handles the storage, picking, packing and shipping of products. Rather than handling these things in-house, companies can outsource the work to an Amazon prep centre UK.
These centres specialise in prepping products to Amazon’s specifications in a quick and efficient manner. By utilising an Amazon prep centre, businesses can save on labour costs associated with self-prep. An FBA prep centre also has preferential shipping rates and volume discounts on packaging and labels not available to individual sellers. This results in significant cost savings that go straight to a company’s bottom line.
Optimise Box and Package Sizes
Another way UK firms can reduce fulfilment expenses is by optimising the sizes of boxes, mailers and packages used for orders. Oversized packaging leads to wasted space, extra material costs and higher shipping rates. By taking the time to correctly size packaging, businesses can realise material and shipping savings.
Some tips for rightsizing packaging include:
- Use filler and void fill – Packing peanuts, crumpled paper, or air pillows can eliminate empty space in boxes. This prevents shifting during transit.
- Evaluate box dimensions – Only use box sizes that closely match the dimensions of products. Avoid large boxes with lots of empty space.
- Consider envelope mailers – For smaller, lightweight items, padded mailers are cheaper than boxes.
- Order custom box sizes – For odd-shaped or extra-large items, custom boxes can save over standard sizes.
- Reuse shipping materials – Gather and reuse undamaged boxes, mailers and padding to reduce costs.
Leverage Discounts from Carriers
Work directly with shipping carriers like Royal Mail, DPD, DHL, UPS and others to leverage volume discounts and negotiate better rates. Most carriers offer discounts for high shipment volumes or guaranteed delivery windows. Discussing options and negotiating custom rates based on average weekly volumes can lead to 10-20% discounts off published list rates.
Businesses should also take advantage of loyalty discounts, small business programmes, and other incentives offered by carriers. Signing up for a carrier’s small business or loyalty programme takes little effort but can provide access to reduced rates, no delivery fees and other perks. Maintaining an active dialogue with fulfilment partners allows companies to capitalise on special promotions and opportunities to reduce expenses.
Finding ways to trim costs in packaging and shipping operations pays big dividends for UK businesses. By outsourcing prep work to Amazon FBA experts, rightsizing packaging to fit products snugly and leveraging volume discounts from carriers, companies can see their bottom line grow. Implementing these strategic changes requires some upfront time investment, but the long-term payoff makes it well worth the effort.
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