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Lowering your costs doesn’t mean cutting corners. In fact, the smartest eCommerce brands reduce costs while maintaining quality, and it starts with looking at your supply chain. From negotiating better deals to finding alternative suppliers, there are huge savings hiding in plain sight.
The key? You’ve got to stop getting comfortable. Because over time, “business as usual” can quietly eat away at your margins.
Here are three proven strategies to help you reduce your costs and unlock hidden profit:
1. Negotiate Better Deals with Suppliers
If you’ve been working with the same suppliers for a while, chances are you’ve built some solid relationships. Use that to your advantage. Suppliers want your business long-term, and if you’re a reliable buyer, there’s room to negotiate.
Here’s what to ask for:
- Volume Discounts: If cashflow allows, committing to larger orders can give you significant savings per unit.
- Better Payment Terms: Extend your payment window (e.g., from 30 days to 60 days) to keep cash in your pocket longer.
- Loyalty Rewards: Remind suppliers of your consistent business and ask for incentives, small discounts, free shipping, or perks for sticking around.
A single “What can you do for us?” conversation could save you thousands over the year.
2. Switch to Alternative Suppliers
Here’s the uncomfortable truth: loyalty to your suppliers can cost you.
Many businesses stick with the same suppliers for years, assuming they’re getting the best deal. But in reality, prices creep up over time, cost creep, and you may not even notice.
What to do:
- Shop Around: Explore other suppliers who can offer the same (or better) quality at a lower price.
- Get Quotes: Reach out to 2–3 competitors and compare their prices and terms. Even if you don’t switch, showing your supplier that you have options could nudge them into giving you a better deal.
- Test New Partners: Start with a smaller order to assess quality before committing.
This isn’t about switching for the sake of it, it’s about making sure you’re paying what you should be paying.
3. Consolidate Shipments to Reduce Costs
Shipping can quietly drain your margins, especially if you’re placing small, frequent orders. One way to fix this? Bulk-order inventory to consolidate shipments.
Here’s why it works:
- Lower Per-Unit Shipping Costs: Shipping in larger volumes brings down the cost per product.
- Fewer Shipments = Fewer Fees: Instead of paying for multiple shipments, you’ll save by reducing the number of deliveries.
- Smoother Cashflow: Yes, bulk orders require upfront cash. But in the long run, you’ll save money, and avoid stockouts that interrupt sales.
If you’re worried about cashflow or storage, plan your bulk orders strategically. Work out your most popular SKUs and buy those in bulk first.
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4. Reduce Packaging Costs (Without Compromising Experience)
Your packaging matters—it’s part of the brand experience. But let’s be honest: it can also be a sneaky expense that adds up fast. The good news? You can reduce packaging costs without sacrificing quality.
Here’s how:
- Simplify the Design: Does your packaging need all those bells and whistles? Sometimes simple, clean packaging performs just as well.
- Negotiate with Suppliers: Like any other cost, packaging materials can be negotiated. Talk to your supplier about bulk order discounts or alternative materials.
- Use Eco-Friendly Alternatives: Many sustainable options now cost less than traditional materials. Bonus: customers love eco-friendly brands.
- Test New Sizes: If your box is bigger than it needs to be, you’re paying more for shipping and materials. Audit your SKUs and adjust packaging sizes to fit products snugly.
Good packaging doesn’t have to cost the earth (figuratively or literally). Keep it functional, on-brand, and cost-efficient.
The Big Takeaway: Stop “Business as Usual”
Costs don’t go down by accident. They go down when you intentionally review, renegotiate, and rethink your supply chain.
- Talk to your suppliers. Use your loyalty to get better deals.
- Explore alternatives. Don’t let cost creep eat your margins.
- Order smarter. Consolidate shipments to reduce per-unit costs.
Margins matter. And the beauty of these strategies? They don’t compromise the quality of your product. Instead, they make your business leaner, more profitable, and ready to grow.
Stop leaving money on the table, start optimizing.
This is just one of the strategies in the Double Your Profit in 90 Days Cheat-Sheet. If you haven’t grabbed your copy yet, download it now to get even more actionable tactics to boost your profits.