Startup Advice: How To Drive Down The Cost Of Deliveries


If you’ve recently started an online retail company that sells products all over the world, you’ll have to work hard to drive costs down. The last thing you want is for the price of delivery to eat into your profits. However, at the same time, you can’t charge your customers over the odds for that service. So, you need to sit down and take a look at the situation. Try to design a system and processes that will help you to achieve your goals without breaking the bank. You should include some of the ideas mentioned in this article for the best results. At the end of the day, transporting your goods from A to B can become expensive. So, you’re going to need all the help you can get. 

Use International Couriers For Overseas Orders 

If you sell to customers overseas, it doesn’t make sense to send a delivery driver halfway around the world. So, you need to build relationships with international courier firms as part of your long-term growth strategy. That is how you will get your products to their destination without paying over the odds. Of course, prices will get better with every item you send. Those companies reward loyalty. So, if you’re shipping thee-hundred deliveries every week, it’s going to cost less per item than it would when you ship one-hundred. All you have to do right now is research the matter using Google. Make a list of suitable companies, and then get in touch with them to discuss your arrangement. With a bit of luck, using the same firm will assist you in keeping prices down.

Use Agency Drivers When You’re Busy 

There is no getting away from the fact that you will have to employ some full-time drivers to make deliveries in your home country. However, you’re not going to receive the same number of orders every single week. You might have busy periods around Christmas for example. With that in mind, you should never offer permanent contracts to extra drivers during those times. That is because the action might hurt cash flow when the situation calms down. Do yourself a favor and contact some recruitment agencies that deal with logistics. The experts working for those brands can provide you with other professionals whenever you require their assistance. You can then let them go when your orders die down.

Use Route Planning Software To Save Time 

You need to make sure your drivers don’t use too much fuel when travelling to their destinations. The best way of achieving that goal is to use route planning software. There are many different packages available on the market today. The best ones will consider issues like roadworks and traffic when designing the fastest route to the destination. So, don’t make the mistake of purchasing the cheapest solution you can find. Ideally, you want a premium product that comes with all the latest features. In many instances, you can make stipulations about the route. For example, you can insist the software doesn’t take your drivers on a motorway.

Get All Insurance From The Same Provider 

Insurance policies for delivery firms can become rather expensive, and so you should always shop around before signing any contracts. Get in touch with lots of different providers like those at quoterack.com.au, and ask them to come back to you with some quotes. You can then use those figures to negotiate and drive prices down. Whatever happens, make sure you use the same insurance company for everything you require. If you take out multiple policies with the same firm, you have more ammunition to reduce prices or get some discounts. You also might like to consult a legal expert during the process. People in that profession are in the perfect position to offer advice and highlight any types of policy you might have overlooked. Picture 

Give A Three Day Window For Dispatch Times 

You probably want to deliver all products as soon as possible. However, it’s sensible to allow some flexibility in the dispatch times. That is because you want to send a full order wherever possible. If your drivers can fit two-hundred items in their vans, and you only have one-hundred orders that day, you should wait. The following day you might have another hundred orders. So, you can fill the van and ensure you use your money as efficiently as possible. At the end of the day, your profits will decrease if you send a driver out with only half a load. It’s still going to cost the same amount to transport those goods to their destinations. So, try to remain as economical as possible through flexibility. 

Apply For Finance For Your Vehicle Fleet 

There is a good chance you will have to purchase a fleet of vehicles for your startup retail business. You need those so your drivers can make deliveries as quickly as is convenient. The issue is that trucks and vans tend to cost a lot of money if you buy them brand new. However, there is a solution, and it relates to financing. You can research using Google or visit RobSinclairFinance.com.au for more info. All you need to know is that financing will mean you only have to pay an affordable bill each month. You won’t have to fork out hundreds of thousands to purchase the vehicles outright. If your company doesn’t have any credit problems, you should get approval fast. 

Everyone reading this post should now have a reasonable idea about the best ways to drive down the cost of making deliveries. Make sure you put those tips into action as you move forward and expand your company this year. The fact that you need delivery drivers suggests that your retail business is doing well at the moment. That’s an excellent sign as more than 50% of new companies fail within the first twelve months these days. You’re obviously onto a winner, and so you just need to continue your research and read more articles from this blog. Everything you need to know about logistics, frugal finances, digital marketing, and much more is freely available on this website somewhere. Take a look around!





I hope you enjoyed this article about how to help reduce the cost of your deliveries and other related business expenses.

Interested in more articles about cutting business costs?

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Published by Michael J Schiemer
Owner of Bootstrap Business
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