Facing Rising Shipping Costs? What Is Driving Up Prices and How You Can Save

Running a cell phone accessories retail or drop shipping business isn't easy. And new challenges often lurk around every corner, contributing to uncertainty and risk.

 

With Christmas and New Year on the horizon, we're sure you're looking forward to a busy and profitable holiday season. Now, that's all well and good, and at TVCMALL, we want nothing more than for all our B2B customers to THRIVE! But we need to keep you in the loop about certain factors that can potentially derail your festive season boom.

 

That's why we're taking this opportunity to inform you about the rising shipping costs that can hurt your profitability. But we won't leave things at that, as we'll also offer several helpful tips to alleviate the pain incurred by these increased shipping costs and even turn the tables in your favor!

Global Shipping Volatility in 2024

 

It's no secret that the global economy was under severe strain during 2024. Contributing factors include disruptions in the Panama Canal, Suez Canal, and the Red Sea. Unsurprisingly, this severely impacted global supply chains and caused a sharp rise in shipping costs.

  

The Panama Canal and Red Sea disruptions have also affected the China Containerized Freight Index. And the results don't look pretty, with a cumulative 120% increase on the index from October 2023 to June 2024.

 

The situation is so bad that the UN Trade and Development (UNCTAD) has called for immediate coordinated action to deal with the current volatility. Will it be too little too late, or can we hope for some positive change in the immediate future? At TVCMALL, we hope it will be the latter, but we need to brace ourselves for some more bad news right now.

 

Latest Logistics Update

 

Due to Christmas and New Year shipments, including an earlier Chinese New Year, high demand and limited vessel availability are causing severe congestion and rising rates across all major shipping lines. Therefore, multiple carriers have adjusted rates in November, with increases likely through January.

 

Unfortunately, the same is happening with air freight rates, which are reaching new highs. If you're a US-based customer or seller, expect to be impacted further. U.S. Customs is intensifying inspections on shipments with multiple consignees. In the EU, Spain will require a recycling symbol on all packaging for sellers starting January 1, 2025.

 

How to Reduce Shipping Costs

 

While rising shipping costs will negatively impact the profitability of your business, there are several things you can do. With the festive season upon us, there's never been a better time to adopt these proven cost-saving strategies:

 

● Calculate shipping fees early on: Don't leave this for the last minute, as you don't want to incur higher-than-usual fees by overlooking any shipping-related expenses during peak business cycles. Calculate all the costs of your packing materials, labor, courier, collection, delivery, export, and import duties before the holiday season begins.

 

● Utilize the most affordable courier for your region: Compare the transit times of multiple courier services offered for your country or delivery destination. Determine which courier gives you the best deal, but ensure that delivery timelines are satisfactory and that the courier has a reputation for delivering on time.

 

● Pay attention to the weight of your orders: Reduce your shipping costs by keeping the weight of your orders as low as possible, especially your Christmas bulk orders. An effective way to do this is to split your order into several packages to reduce the shipping cost per package. Also, consider using lightweight packaging materials for orders you ship to customers. This often requires trial and error to achieve the most optimal shipping fees.

 

● Consolidate orders: Reduce the number of trips and packaging materials by consolidating your wholesale orders. Contact our friendly experts to learn which shipping method will serve you best.  

 

● Automate your shipping process: It's often challenging to keep on top of incoming orders and customer orders shipped out. Orders sent to the wrong address or delivered late will lead to a costly penalty for your business. So, stop this from happening by integrating your e-commerce website, third-party platform, and operating system via our API.

 

Conclusion

 

Christmas and New Year are often the busiest times of the year for retailers, e-commerce stores, and drop shipping businesses. Some of the biggest-selling products for the festive season are available at our phenomenal one-stop B2B wholesaler online store.

 

And if you follow our simple steps to save on shipping costs, your holiday season will be joyous and profitable. Contact us today to learn about our product range and shipping options that will put your business on top!