Tech Tools to Minimize Shipping Costs
As more retailers roll out free shipping and returns, staying competitive as an artisan winery or specialty CPG company can be challenging. Tech tools to minimize shipping costs let growing businesses compete through improved efficiency, discounted rates, and streamlined operations. Learn how shipping cost reduction tools work and explore winery and CPG shipping solutions.
Why Reducing Shipping Costs Is Crucial for Wineries and CPG Companies
According to research from Santa Clara University's Retail Management Institute, shipping concerns are to blame for 56% of abandoned online shopping carts. Around 26% of customers abandoned purchases because the store didn't offer free shipping or charged high shipping fees.
Companies like Amazon have accustomed consumers to low-cost (or free) shipping and ultra-fast deliveries. And with major retailers like Wine.com offering paid subscription programs with free shipping, small wineries and CPG companies may struggle to attract customers.
Smaller businesses likely don't have the infrastructure to offer free delivery without cutting into their profits to an unacceptable degree. While research shows that some consumers are happy to pay more for artisanal products, wineries and CPG companies can still offer cheaper deliveries by leveraging tech tools to minimize shipping costs.
Shipping tech tools aimed at the wine and CPG industries typically offer inventory, logistics, and warehousing systems to help small companies exploit the infrastructure used by larger businesses. Partnering with the right company helps you deliver shipping costs and timescales to rival your competitors.
Industry-Specific Shipping Solutions
Solutions such as WineShipping and Vinfillment offer cutting-edge technology to meet the unique needs of food and beverage sellers, enabling cost-effective, efficient shipping.
WineShipping
WineShipping provides a range of logistics and tech solutions aimed specifically at wineries. Partnering with WineShipping offers:
Temperature-controlled shipping. General shipping solutions may not be a good fit unless they use safe storage and transportation practices. To solve this issue, WineShipping provides temperature-controlled shipping and advanced warehousing solutions to keep your wine in perfect condition.
Specialized handling. Breakages during storage or transit can impact your bottom line. WineShipping specializes in handling delicate wine products to minimize losses.
Pricing. Customers receive customized quotes with transparent per-package rates for easier financial planning. The company's extensive network also lets you leverage economies of scale to keep shipping costs low.
Local fulfillment centers. WineShipping operates six regional hubs, shipping orders from the nearest warehouse to the customer to shorten delivery times.
Vinfillment
Vinfillment's comprehensive services let wineries control every aspect of storage and delivery to maximize efficiency. It provides:
Tailored logistics. Vinfillment works with wineries to understand their values and deliver on-brand experiences. Its tailored logistics packages include shipping notifications, email confirmations, and other brand-specific services.
Temperature-controlled shipping. Orders arrive in temperature-controlled vehicles to maintain flavor and integrity. The company also monitors local weather events to avoid conditions that could impact your wine's quality.
Pricing. Pricing depends on your requirements and shipment volumes. Vinfillment will work with you to create cost-effective shipping strategies.
Top Tech Tools to Minimize Shipping Costs
Tech tools to minimize shipping costs help you streamline shipping processes. While features vary between providers, many offer:
Discounted shipping rates
Integration of multiple services and carriers
Label printing
Stock reservation
Shipping action automation
Branded customer portals
Automatic shipping notifications
These tools reduce the time spent on manual processes while delivering the best rates. They help you provide the affordable delivery, fast turnarounds, and on-brand experiences your customers expect.
This table compares five of the most popular shipping cost-reduction tools:
| Company | Integrations | Key Features | Carrier Discounts | Price per Month | Free Trial |
|---|---|---|---|---|---|
| ShipStation | Partners include: Amazon Walmart eBay Shopify Shopify Plus Squarespace TikTok Shop Adobe Commerce Etsy Wix Google Merchant Center WooCommerce |
Order management software Order reports Task automation Branded tracking pages, labels, and packing slips Returns portal Scan to Verify warehouse technology Rate comparison tools |
Carrier discounts include: USPS UPS International UPS Ground DHL Express GlobalPost Parcel Guard |
Up to 25 shipments per month: Free Up to 50 shipments per month: $9.99 Up to 500 shipments per month: $29.99 Up to 1,000 shipments per month: $59.99 Up to 2,000 shipments per month: $99.99 Up to 5,000 shipments per month: $149.99 Up to 7,500 shipments per month: $229.99 Over 7,500 shipments per month: Custom quote |
30 days |
| Shippo | Partners include: Shopify eBay Square Wix Shoplazza WooCommerce BigCommerce Squarespace Bluehost Weebly Web.com |
Label printing Branded customer tracking and returns pages Shipping notifications Insured shipping Niche delivery options Shipping analytics and reporting |
Carrier discounts include: FedEx USPS UPS DHL Express AxleHire CDL Veho |
Up to 30 shipments per month: Free Up to 10,000 shipments per month: $19 Unlimited shipments: Custom quote |
30 days |
| EasyShip | Partners include: Amazon eBay Etsy Groupon Indiegogo Jumia Kickstarter Linio OnBuy Shopify Zalora Zapier |
Shipping dashboard with multi-platform integration Custom shipping rules Label and documentation generation Tracking and returns portal International duties and tax calculator Insured shipping |
Carrier discounts include: UPS USPS DHL Express SF Express Aramex |
Up to 50 shipments per month: Free Up to 500 shipments per month: $29 Up to 2,500 shipments per month: $69 Up to 5,000 shipments per month: $99 |
14 days |
ShipStation
ShipStation's all-in-one platform makes importing orders from multiple marketplaces easy. It automates everyday shipping tasks and compares discounted carrier rates to find the most cost-effective options. The 30-day free trial allows you to test ShipStation's services before committing to a contract.
Shippo
Shippo lets you process up to 30 monthly shipments for free and up to 10,000 shipments for $19, making it cost-effective for small businesses. You can add insurance to deliveries to protect against losses when shipping delicate items. The platform integrates with multiple platforms, letting you manage shipping operations from a single platform.
Easyship
Although EasyShip is more expensive per month than Shippo for high-volume businesses, it's an excellent option for wineries and CPG companies sending products overseas. EasyShip calculates international duties and taxes and generates documentation for straightforward shipping. It also offers discounts for multiple carriers, helping minimize delivery costs.
Benefits of Using Tech Tools to Minimize Shipping Costs
The primary benefits of winery and CPG shipping solutions are reduced shipping costs and improved efficiency. Let's explore how tech tools to minimize shipping costs can boost your business.
Improved Efficiency
Shipping tech solutions let you automate multiple activities, such as label printing and warehouse task delegation, to reduce the hours spent on shipping tasks. Many platforms also track orders, deliveries, and returns, helping you respond quickly to shipping delays and reducing the risk of errors.
In 2018, the Byrd Cookie Company successfully used Shippo's shipping platform to streamline its cumbersome multi-step shipping process. The company now ships over 6,000 direct orders and provides in-flight snacks to a major airline.
Cost Reduction
Most winery and CPG shipping solutions feature carrier comparison tools and discounted rates. These features let you provide competitive shipping prices to your customers. For example, Veiled Collection reduced its shipping costs by 30% through a ShipStation partnership, allowing it to offer free, convenient returns to its customers.
Considerations When Choosing Tech Tools for Shipping Cost Reduction
When choosing tools to minimize shipping costs, the following checklist can help you find comprehensive solutions:
Scalable features
Platform and carrier compatibility
Customer support options
Onboarding training
Platforms with these features manage growing sales volumes, integrate seamlessly with your existing tech, and provide the support you need to use shipping tools effectively.
Scalability
Scalable solutions ensure your shipping tech tool grows with your business. When planning for scale, consider platforms with warehouse optimization and automation features to improve the reliability of your operations when processing high volumes. Many tools also provide deep carrier discounts for larger businesses. For instance, high-volume ShipStation customers can save up to 89% on USPS carrier fees.
Integration Capabilities
As your winery or CPG company grows, you may wish to sell your products across multiple marketplaces. Therefore, solutions that import orders from several platforms and integrate other business tools are ideal. Consider the other tools and platforms you use to help you pick the most compatible option.
Vendor Support and Training
Wine and food deliveries are time-sensitive, so picking a responsive shipping partner is crucial. While some shipping tools are relatively intuitive, you'll usually require training to understand the platform's features. Before committing, check whether solutions offer onboarding training.
Optimizing Shipping Costs With the Right Tech Tools
Tech tools to minimize shipping costs help you streamline operations, maintain product integrity, and access the best shipping rates. To learn more, check out our other articles on logistics for wineries and CPG companies or contact us for personalized support.
