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How to Reduce Shipping Costs on Alibaba
Alibaba shipping costs play a vital role in determining the overall expenses incurred in a business; however, with some measures put in place, one can easily reduce the overall cost of shipping. Below are ten practical techniques you can employ to minimize shipping costs when importing from Alibaba.
Basic Alibaba Shipping Options Overview
When buying goods from Alibaba, it is very important to choose the right shipping method because that can determine the length of time one has to wait and the low prices of the shipping. Here are brief descriptions of the major kinds of shipping to help you determine which kind of delivery will be affordable for you.
1. Regular Post
Regular posts, such as China Post or Hong Kong Post, typically take 15-35 days for delivery. This method is the cheapest for small shipments like samples and parcels. While it offers online tracking, updates can be infrequent.
Although economical, this method is less reliable and secure, making it a better choice for dropshipping rather than valuable or time-sensitive shipments. If you want to learn more about Drop Shipping, we have already published an article on “Best Wholesale Dropshipping Companies” that you can refer to.
2. Air Express
Using courier companies like DHL, UPS, and FedEx is ideal for those starting. Air Express offers reliable online tracking and fast delivery times, usually within 3-5 business days.
The convenience and reliability of express couriers come with a higher price tag than a regular post. However, the seamless delivery process and quick resolutions for any issues make it worth the investment.
3. Air Freight
For larger shipments, air freight becomes cheaper than using a courier service especially when the weight of the shipment is over 100kg. Applicable for moderately fragile goods with pressing time constraints, air freight may take between three and seven days depending on the flight plan. It’s important to note that this method usually has a minimum weight requirement, and the air cost ranges from $4 to $8 per kilogram.
4. Ocean Freight
The sea freight service is cheaper for large shipments but takes longer times usually 30-60 days. It can be effectively used for goods distribution planning and dispatching a large number of products. Sea freight offers flexibility with two main options: FCL and LCL shipping services aimed at the client’s convenience when choosing the container’s size for shipping and bearing the costs.
You now know the shipping services offered by Alibaba through this article, let’s look at how you can lower your shipping costs.
Most of the time, you can determine ways to reduce costs and increase your effectiveness in getting your products to your customers in one piece. It is now appropriate to delve into the following methods in detail.
9 Tips to Reduce Shipping Costs on Alibaba
1. Bulk Purchasing
One of the easiest and most effective ways of minimizing shipping charges is to order in large quantities. Generally, when you buy in bulk, the suppliers are ready to extend shipping concessions to you. For instance, buying 100 pieces for $1500 is more expensive per piece than buying 1000 pieces for $1200 and each comes with the cost of shipping each piece.
To learn more about the Minimum Order Quantity you can order on Alibaba, check out our article on “How to Find Low MOQ Alibaba Suppliers.”
2. Negotiating with Suppliers
Negotiation is crucial for better shipping rates. Discuss shipping costs with your supplier, especially for large orders. Be firm, and explain your budget constraints clearly. For a comprehensive understanding of dealing with Chinese suppliers on Alibaba, don’t miss our article “Chinese Suppliers (Alibaba) Ignore Your Inquiries.”
3. Find The Right Shipping Agent
Large global freight forwarders can attain better rates and conditions from the main airline and ocean shipping companies, as well as a broader network of operating locations.
They can manage warehousing, transportation, and even customs clearance in many cases which may reduce the cost of shipping. Do research on the available shipping agents and select the one that will meet the standard of your business.
4. Consolidating Shipments
Consolidating shipments is another effective way to cut Alibaba shipping costs. Instead of shipping items individually, combine them into one shipment. It reduces the number of shipments and can lower the overall cost. For instance, if you order different products from the same supplier, ask them to consolidate the shipment.
5. Optimizing Packaging and Weight
The shipping cost can be greatly minimized depending on how good the packaging is. Employ appropriate packaging that is light and strong to reduce the consignments’ weight and size. Discuss with your supplier about the various packaging requirements that will give the product protection as well as affordability. For a more in-depth look at packaging when sourcing products, don’t miss our article “How to Customize Product Packaging for Amazon FBA.”
6. Shipping During Off-Peak Seasons
In general, shipping costs differ based on the season. Saving costs can be achieved by shipping during off-peak times because the demand for the services is low. This means that you are advised to plan your shipments during these times since they attract lower rates.
7. Taking Advantage of Promotions and Discounts
Some of the shipping services provided by Alibaba include, the company often stops giving out discounts for shipping. To know the current status of these offers, one can subscribe to newsletters or follow their social media accounts.
8. Leveraging Alibaba Trade Assurance
The Alibaba Trade Assurance program guards your orders; it can minimize risks and expenses. It guarantees you get the products exactly as described and at the expected time or your money back. This program enables people to have confidence and shields them from spending a lot of money in the process.
9. Monitoring and Reviewing Your Shipping Costs
Shipping cost analysis should be done frequently to check areas for optimization and improvement. estimate shipping costs, and compare prices from different shippers. Recording your expenses makes it easier for you to make good decisions and also adopt better measures.
Read More:
The Cheapest Way to Ship on Alibaba
To minimize Alibaba shipping costs, one must incorporate the service of a reputable and reliable shipping agent.
OwlSourcing specifically focuses on the coordination of the different stages of the import process and has extensive knowledge of supply chain solutions. Thanks to our experience, we are ready to provide services in the transportation of goods by air and sea, as well as by the Amazon FBA method and express cargo.
To you, our commitment is to give you the fastest and most efficient solutions to reduce your shipping expenses on Alibaba.
