Don’t Let Shipping Costs Eat Your Margins

May 21, 2021

You Might be Losing Money on Shipping

During the last year, returns have exploded due to increased consumer spending online. According to the National Retail Federation, consumers returned approximately $428 billion in merchandise equating to 10.6% of total U.S. retail sales in 2020. 

Not only does this cause a finance loss for retailers but also, it creates a logistical nightmare.

 To support our community of small business owners, we decided to catch-up with Chris Randall, Vice President of Freight Club, to learn how we can implement the smartest shipping tactics to navigate increased returns.

Carrier Selection

Think about what your carrier’s capabilities are within the regions that you ship. Is a particular carrier more active than others in the Midwest, for example? Can they provide lower costs for your shipments to customers in that area whereas another carrier may be more cost effective in the Northeast? Companies like Freight Club allow you to source multiple carriers to benefit your carrying shipping needs in different regions to minimize spend and maximize shipping reliability.

Consider Damage Costs

Consider the type of products you are shipping. Are they high or low damage products? It may be beneficial to pay slightly more upfront to ensure there won’t be increased costs associated with damages later on.

TIP: Make sure you are asking the carrier what their damage rate is. This will give you major insights to your products and the likelihood of damage due to shipping for a single SKU.

  Improvements in Insurance

Carrier insurance does not always have you covered in likely damage occurrences, leaving you vulnerable for losses along the way. By securing a secondary insurance policy, it’ll be less likely that you will have to pay out of pocket when a damage occurs.

To find out more on how you can decrease losses and increase gains in your shipping strategy, view the on-demand recording of ‘Shipping & Returns 101 for free. 

About ASD

At ASD Market Week, you’ll discover higher margins, a wider selection of on-trend products, and the newest merchandise while meeting over 2,700 vendors. ASD Market Week is truly the wholesale buying event that can’t be missed.
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Macala Wright

Macala Wright

Macala Wright is a writer and researcher who specializes in health, wellness, food, and farming. Her expertise has been published in the New York Times, Wall Street Journal, San Francisco Chronicle, and many more publications. When she’s not writing about consumer behavior or food, she can be found scouring for deals in antique shops or on the back of her horse. You can follow her on Instagram @Macala or visit

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