The Shipping Cost Dilemma

February 17, 2021

You all know the shipping and exporting costs from China have gone crazy. It doesn’t matter if you are a retailer or an e-commerce seller; the current situation is affecting your unit product cost. Until a while ago, the container’s shipping cost was bearable and would have little impact on a single unit’s cost. The shipping price has nearly quadrupled, which then causes the cost of a unit to increase. Has this situation placed many sellers in the big dilemma of choosing between:

  1. losing a large part of their profits
  2. raising their prices and risk losing customers

I want to offer a different and creative approach to handling this dilemma.

“Filling the emptiness” – many of the sellers used to sell empty storage boxes. It doesn’t matter what kind of box – mostly, the dimensions are large, but the product’s value is low. To solve it, a suggestion is to start filling the boxes with suitable products and selling them as one product. An excellent example of this is an empty spool organizer box. The product costs are low, but in the current situation, its shipping costs are incredibly high. To solve this, we started to fill the organizers with sewing thread.

By doing this, we accomplished  two things:

  1. we saved on shipping space – instead of shipping two separate products (thread, organizer) we used only one product.
  2. We increased product value – now, even though the shipping costs are high, the product can absorb it.

“Together is always better” instead of selling two different products, we create a new set from them. An excellent example of this is knitting accessories. Instead of selling many separate accessories like bobbins, stitch counters, stitch holders and so on, we combine them into the one kit – a knitting accessories kit. Once again, we succeed both in saving on shipping space and increasing the product value.

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O.S.M Director

O.S.M Director

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