{"id":7763,"date":"2022-08-23T08:19:12","date_gmt":"2022-08-23T08:19:12","guid":{"rendered":"https:\/\/www.brightpearl.com\/?p=7763"},"modified":"2023-03-31T14:39:34","modified_gmt":"2023-03-31T14:39:34","slug":"online-retail-4-ways-you-can-cut-shipping-container-costs","status":"publish","type":"post","link":"https:\/\/www.brightpearl.com\/blog\/online-retail-4-ways-you-can-cut-shipping-container-costs","title":{"rendered":"Online Retail: 4 Ways You Can Cut Shipping Container Costs"},"content":{"rendered":"

For online retail brands that import products, using shipping containers is a necessary evil \u2013\u00a0and it\u2019s one that\u2019s hitting merchants\u2019 profit margins harder than ever.\u00a0<\/span><\/p>\n

A unique combination of multiple circumstances \u2013\u00a0including the supply chain<\/a> crisis, the lack of lorry drivers, the pandemic aftermath, the fallout from Brexit,\u00a0 the Ukraine invasion, rising inflation and fuel prices, \u2013\u00a0has resulted in a staggering surge in the cost of using shipping containers.\u00a0<\/span><\/p>\n

Container costs are reportedly now up by more than 600% \u2013\u00a0and there are widespread anecdotes of merchants being forced to pay upwards of $25,000 for container space that cost just $3,000 a couple of years ago. Even consumers are starting to sit up and take notice as they realize items they once bought without a second thought are becoming unaffordable after brands passed on price hikes.\u00a0<\/span><\/p>\n

Unfortunately, things are set to get worse before they get better. Experts predict that shipping costs will continue to rise (because shipping capacity is unable to increase at the same pace as demand) into 2023 and leading logistics providers <\/span>claim<\/span><\/a> it will take <\/span>years<\/span><\/i> for costs to stabilize.\u00a0<\/span><\/p>\n

As a retailer, you can\u2019t do anything to change the causes of rocketing shipping container shipping, but there <\/span>are<\/span><\/i> things you can do to mitigate the impact and cut costs. Let\u2019s look at four suggestions:\u00a0<\/span><\/p>\n

1. Maximize use of container space\u00a0<\/span><\/h2>\n

Shipping containers are usually priced per container – regardless of how full they are packed. Make sure you know the inner dimensions and weight limits of the shipping containers you are using, and use this information to ensure you maximize the space available to increase your value for money.\u00a0<\/span><\/p>\n

Brightpearl\u2019s <\/span>Inventory Planner Premium<\/span><\/a> allows you to input CBM (cubic metrics) or weight to maximize container loading. You can even scale a PO to ensure you fill every square inch of your containers to avoid wasted space and unnecessary costs.\u00a0<\/span><\/p>\n

In the battle against surging container costs, being smart about how you fill each and every container you pay for should be a top priority.\u00a0<\/span><\/p>\n

2. Rethink your packaging<\/span><\/h2>\n

The precise volume and weight of your packages might not have seemed like a big deal in the past, but with shipping container prices going through the roof, retailers must rethink how their imported items are packaged.\u00a0<\/span><\/p>\n

The key is to keep items packed tight and lower their weight as much as possible. Don\u2019t assume cardboard is your only option – standard cardboard is heavy and bulky. Corrugated boxes are lighter, and air pillows or packing paper are a lightweight option for padding.<\/span><\/p>\n

However, it might be worth designing bespoke packaging that closely matches the shape and size of your items. This way, you\u2019ll need less packaging and will be able to fit more in your container, making each shipment better value.<\/span><\/p>\n

3. Switch up your suppliers<\/span><\/h2>\n

How much do you pay for each shipment? What\u2019s the lead time<\/a>? Do containers arrive on schedule? The answers to these questions will impact the cost effectiveness of each supplier. And while shipping containers are in high demand, it doesn\u2019t mean you should settle for sub-par service or just assume you aren\u2019t being over-charged.\u00a0<\/span><\/p>\n

Shop around for the best deal. Choose suppliers that can help you cut costs where possible. For instance, your freight forwarder should ensure they don\u2019t deliver goods too early or too late \u2013\u00a0both can incur extra fees that you\u2019ll have to pay.\u00a0<\/span><\/p>\n

Consider using smaller, less well-known (but still trustworthy) suppliers who can often offer a more reasonable and flexible service.\u00a0<\/span><\/p>\n

Worried about managing multiple suppliers with different lead times? As a purpose-built <\/span>Retail Operating System<\/span><\/a>, Brightpearl offers integrated supplier management and access to our market-leading Inventory<\/a> Planner Premium tool. It means you can easily manage all your suppliers in one place, keeping track of all activity and adjusting replenishment based on each supplier\u2019s lead time to ensure you always have the optimum amount of inventory.\u00a0\u00a0<\/span><\/p>\n

4. Source products closer to home<\/span><\/h2>\n

Importing goods from China has long been the cheapest way to source stock, but current shipping container costs mean that\u2019s no longer always the case.\u00a0<\/span><\/p>\n

Research which items you can source within your own borders \u2013\u00a0and consider reprioritizing your inventory accordingly. If your goods don\u2019t have to travel internationally, you can bypass the need to use expensive shipping containers altogether. Local suppliers may be able to offer attractive economies of scale, faster lead times and better service.\u00a0<\/span><\/p>\n

However, minimizing the cost of domestic shipping is also important. <\/span>Brightpearl<\/span><\/a> enables retailers to automatically optimize order routing in order to reduce shipping distance (and therefore reduce cost).\u00a0<\/span><\/p>\n

Book a demo<\/b><\/a> to find out more about how Brightpearl\u2019s Inventory Planner Premium can help you win against the surging cost of shipping containers.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

For online retail brands that import products, using shipping containers is a necessary evil \u2013\u00a0and it\u2019s one that\u2019s hitting merchants\u2019 profit margins harder than ever.\u00a0 A unique combination of multiple circumstances \u2013\u00a0including the supply chain crisis, the lack of lorry drivers, the pandemic aftermath, the fallout from Brexit,\u00a0 the Ukraine invasion, rising inflation and fuel […]<\/p>\n","protected":false},"author":17,"featured_media":7764,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7763","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"\nOnline Retail: 4 Ways You Can Cut Shipping Container Costs - Brightpearl<\/title>\n<meta name=\"description\" content=\"For online retail brands that import products, using shipping containers is a necessary evil \u2013\u00a0and it\u2019s one that\u2019s hitting merchants\u2019 profit margins\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.brightpearl.com\/blog\/online-retail-4-ways-you-can-cut-shipping-container-costs\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Online Retail: 4 Ways You Can Cut Shipping Container Costs\" \/>\n<meta property=\"og:description\" content=\"For online retail brands that import products, using shipping containers is a necessary evil \u2013\u00a0and it\u2019s one that\u2019s hitting merchants\u2019 profit margins\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.brightpearl.com\/blog\/online-retail-4-ways-you-can-cut-shipping-container-costs\" \/>\n<meta property=\"og:site_name\" content=\"Brightpearl\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/BrightpearlHQ\" \/>\n<meta property=\"article:published_time\" content=\"2022-08-23T08:19:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-31T14:39:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.brightpearl.com\/wp-content\/uploads\/2022\/08\/iStock-656487340-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1440\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@BrightpearlHQ\" \/>\n<meta name=\"twitter:site\" content=\"@BrightpearlHQ\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark Hook\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.brightpearl.com\\\/blog\\\/online-retail-4-ways-you-can-cut-shipping-container-costs\",\"url\":\"https:\\\/\\\/www.brightpearl.com\\\/blog\\\/online-retail-4-ways-you-can-cut-shipping-container-costs\",\"name\":\"Online Retail: 4 Ways You Can Cut Shipping Container Costs - 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