global shipping logistics, third party fulfillment, fulfillment solution, fulfillment provider

How to Minimize the Cost Spent in Global Shipping Logistics?


Shipping costs make up a significant portion of overall business expenses. The past two years have witnessed a continuous hike in shipping rates, and small businesses were the biggest hit [1]. Coupled with the rising inflation, small business owners are being squeezed from everywhere. Many small businesses reported that they are reluctant to increase the prices of their products in order to be able to retain their customers. This has put small business owners in a tight spot.

While the big businesses have been able to save up the cost spent on global shipping logistics by transporting huge volumes and negotiating the best shipping rates, and this article will shed some light on several ways through which small businesses can save up the cost of their global shipping logistics.



1.Determine if you need contract logistics or 3PL fulfillment

Previously, we have already discussed how to choose between contract logistics and 3PL fulfillment. Small businesses, in particular, need to attach extra importance to this issue, as managing inventory and fulfillment in this today's global supply chain network can be overwhelming for small business owners. Outsourcing global shipping logistics can save businesses from locking up the funds in hiring specialists, warehouses, and order fulfillment.

A fulfillment provider can ease down the burden on business owners by handling their global shipping logistics. The key here is to determine what kind of fulfillment provider you need to help you provide fulfillment services to your growing customer base.

2.Take order volume and required delivery time into consideration

Is your shipment going to be delivered within the country or overseas? What is the volume of your package? What is the required delivery time? Is it a same-day delivery package, or can it be processed within business days? Shipping costs are not just heavily influenced by the distance a package covers, but also depend on the package volume and required delivery time. So don’t forget to consider more when selecting different delivery methods.

For many small businesses, the most cost-effective method of shipping is the carrier's flat rate shipping, in which a flat rate is charged for all the parcels. Choosing the appropriate delivery method according to the volume and delivery time of the package can reduce shipping costs significantly.


3.Reduce the weight of your packaging

Pay attention to the weight of your shipments. The shipping rate increases with the package's actual or dimensional weight.  That's why it's beneficial to use lightweight packing if you want to save money on shipping and increase your profits.

Customization is another way to reduce the total weight. Customized packages according to the product's size and type require less packaging material, thus saving you on shipping costs. Custom packaging doesn't only reduce the package's actual weight by needing less packaging material but also takes less dimensional space. Additionally, customizing your package contributes to extra branding. We are all too familiar with the boring brown boxes when unpacking our deliveries every day, the customized package and uniquely designed boxes would surely bring a strong impression on your brand.


4.Choose those offering package tracking services for the follow-up actions

Choose the carrier that offers free tracking services for your packages. The free tracking of the package will enable you to get regular updates on the status of your package without adding anything to your shipment costs. It also allows your customers to track their purchases. According to a survey conducted by Metapack, 70% of the customer said that they prefer to buy from sellers who offer tracking services of their purchases while buying a product online [2].

5.Find those offering both international and local delivery

Local carriers can expedite the delivery time, while international carriers have a global reach. It is important to select a carrier that offers international and local delivery both, allowing you to negotiate to avail the best shipping prices while expediting the delivery process. Also, integration of all services ensures the control of the entire process, reducing your effort spent in talking between different parties.

6. Diversify your shipping strategies

Enabling customers to choose from a variety of shipping options can reduce the burden of the shipping expenses basket. Diversify your shipping strategy by incorporating multiple shipping options to choose from; for example, allow the customers to choose from having the goods delivered to their doorstep, or they can pick their package from their nearest pick-up points.


Partner with YunFulfillment to Minimize the cost of Global Shipping Logistics

Although you can keep the fulfillment in-house, contracting the right carriers and managing all other order fulfillment operations can be overwhelming, time-consuming, and might eat up your profit margins if not executed effectively. Outsourcing the outbound logistics can save you from this hassle while saving your expenses in global shipping logistics.


As a one-stop fulfillment service provider as well as a trustworthy partner for businesses of all sizes, Yunfulillment has a reach across the globe covering 220 countries. We support small-volume delivery, customization, package tracking, and global/regional shipping. Our team of committed and professional logisticians has served more than a thousand clients, with fulfillment solutions that promise flexibility, efficiency, and cost-effectiveness, so that our clients can solely focus on generating sales without worrying about their outbound logistics.

If there’s anything you would like to know, contact us anytime, we are happy to help you however we can.



[1] COVID-19 and rising shipping rates: What are the factors in play and what can be done?

[2] “Where’s my package?” Why answering this question is the key to building customer trust

Previous7 tips for inventory management in warehouse you shouldn't miss!
5 Tips to Manage Your Global Shipping and Logistics During Festivalsnext
Contact Us