In New Zealand, there are endless opportunities for small businesses to grow and thrive. The country offers many advantages for entrepreneurs, including a strong economy and a supportive environment for businesses.
Small local businesses account for more than 90% of all firms, with an estimated 530,000 in operation, according to the New Zealand government. These businesses contribute over a quarter of New Zealand’s Gross Domestic Product (GDP).
In recent years, the growth of e-commerce has exploded in the country and is expected to grow by 55% by 2025, according to the 2022 Global Payments Report by Worldpay from FIS. Small, home-based businesses are reaping the benefits of online commerce. By selling their products and services virtually on an e-commerce website, they can reach a larger audience and generate more revenue.
However, the cost of shipping can be a significant expense for these small New Zealand (NZ) businesses. They often find it difficult to cut down on shipping costs, especially when competing with larger businesses. Below are four tips for small and micro businesses in New Zealand to reduce their shipping expenses without compromising the quality of their products or customer service.
1. Compare shipping rates across different carriers
It's no secret that shipping rates from different carriers can vary greatly. That’s why it is important to compare shipping rates from different carriers to find the best deal for your needs.
However, businesses need to have a firm understanding of the market. By knowing average rates and what to expect from different shipping services, companies are in a better position to negotiate better shipping rates with suppliers and carriers, getting the best deals possible.
Be sure to factor in delivery time and cost of shipping insurance into the costs as well.
2. Ship products in bulk whenever possible
Bulk shipping can be a great way to save money on your shipping costs. When you ship products in bulk, you take advantage of the lower rates offered by shipping carriers for larger shipments. In addition, packing your products tightly together helps to reduce the amount of space they occupy in the truck or air cargo container, which means you'll pay less for transportation.
When shipping items, it is important to ensure that they are packed securely to avoid damage during transit. By using sturdy packaging materials and taking care to fill any spaces around the item, you can help protect your shipment and save on shipping costs.
3. Plan ahead to avoid last-minute shipping rush fees
There are certain peak periods in shipping, such as September to November for import goods and February to April for export products. No matter if its air, ocean, rail, or road freight, the rates are often higher during these peak seasons due to the greater number of cargo going in and out of the ports.
However, by planning ahead and finding alternative routes, small businesses can avoid paying last-minute shipping fees that are much higher than they need to be. If you’re transporting goods via air freight, book at least a week ahead of the cargo ready date. If you’re shipping Less than Container Load (LCL) cargo, book at least two weeks before the estimated time of departure.
4. Choose a trustworthy shipping partner
When you're looking for a company to handle your shipping needs, it's important to find one that is reliable and has a proven track record so you can get your products where they need to go, on time and without any issues.
At DHL Express, we have been providing quality shipping services to businesses of all sizes for over 50 years. We are experts in the shipping industry, and our team is dedicated to ensuring that your shipments arrive on time and in perfect condition. Sign up for an account today or get in touch with our team to learn how DHL Express can help your small business in New Zealand.
