Shipping supplies are one of those areas in the reselling world that money seems to just disappear into. For each individual order, it doesn’t look like the cost of supplies is a lot, but at the end of the year we suddenly see a massive amount paid when reviewing our expenses. Boxes, Polly mailers, bubble wrap, tape…it all adds up, and if you don’t learn how to buy your shipping supplies right, you will be throwing money away.
The cost of shipping supplies directly affects your profit margin. That is because profit margin is calculated by dividing your profit by the revenue, and your profit is calculated by subtracting cost of goods sold from your revenue. Since shipping supplies are part of your COGS, they are part of the profit margin calculation.
The great thing though is that you can directly impact this part of your profit margin, unlike other areas that you cannot change, such as the selling platform fees you are paying to EBay, Poshmark, Mercari, Etsy or Amazon.
Shipping supplies can be found at cheaper prices if you look hard enough. Therefore, a little work can increase your profit margins on not just one or two items you sell, but on all items you sell.
That’s a big deal!
So how do you save money on shipping supplies? Here are some of the ways we do it.
1. Use Free Supplies From USPS, FedEx, or UPS
What’s better than saving some money? Getting supplies for free! The major shipping carriers in the US all offer some free supplies which you should be availing of in your reselling business. There are some restrictions on the services that these supplies can be used for, e.g. the USPS supplies are less useful if you only sell books and use Media Mail for all shipments, which is not eligible for use of their free supplies. However if you sell clothing or many other items, these supplies can be incredible, and you can often save money on not just the envelope or box, but also creatively save money on the actual shipping costs by leveraging some of the flat rate options in different ways.
USPS, UPS and FedEx all offer supplies ranging from cardboard envelopes to full sized boxes and many things in between. Check out their websites to see what is available. You can even order supplies to be shipped straight to your door!
2. Build a Partnership With a Local Store
If you are at least a few months in to your reselling journey, then you likely have a good grasp on the type of boxes that you need for your items. Whether you’re selling shoes, books, clothing, toys, electronics, or anything else, box sizes will vary in size and cost.
When you know exactly what type of boxes you need, start to pay attention to the businesses near your home. Do they use boxes that may just be the precise type of box that you could use to ship your items? Grocery stores, restaurants, gas stations, and countless other types of businesses frequently recycle boxes of various sizes. There’s a good chance that the sizes you need can be found in one of those businesses.
When you’ve identified some businesses that may have the boxes you need, ask to speak with the manager. Explain to her or him that you run a small online business and you would be willing to pick up their recycling for free once per week, on an agreed day and time. It’s important to use that type of wording, where you are offering to give them a free service, as opposed to sounding like you are asking for a favor.
If the manager doesn’t agree, move on to the next store. You should be able to find one that is willing to work with you. By doing this, you could meet all of your shipping box needs for free, and save hundreds or thousands of dollars per year.
Local businesses are great because you could get a consistent box size and only need to travel to a single location, with an agreed and frequent schedule which helps with planning.
3. Talk to Your Neighbors
If you can’t find a local business to work with, you could turn to your neighbors. In a world where online shopping has become a normal part of most people’s lives, people find themselves swimming in boxes from Amazon, Walmart, Sephora and many other retailers. Where do those boxes end up? In the recycle bin in your neighbors driveway!
I don’t suggest going through your neighbors recycling without discussing with them though!
Let your neighbors know that you run an online store, and you have a constant need for boxes. Tell them your preferred box size, but that you may have a use for various other sizes too. Ask them if they can keep boxes for you, and agree to stop by regularly to pick them up.
This can be a great way to get free boxes quickly. It’s particularly useful if you live in an apartment building, as often you can simply go to the trash room and find endless stacks of boxes there. Talk to the super or building manager, and let them know that you would love to take some of those boxes off their hands.
4. Local Marketplace Websites
Another great way to find free shipping supplies is to use Facebook Marketplace, Craigslist, OfferUp or another local marketplace site. If you live in a city, these sites are full of people willing to give shipping supplies away for free or extremely cheap. Moving boxes are frequently exchanged for free, so if you sell larger items or if you ship your inventory in bulk (e.g. to Amazon FBA warehouses), you may be able to get larger sized boxes quickly on marketplace sites.
For smaller sized boxes, these sites can still be useful. More and more small businesses are turning to these sites to post items for sale, or post liquidation that they have ongoing. Use the opportunity to reach out to the store owners that you see and ask them directly for a partnership to remove their boxes.
Packing material may also be found for free on local marketplace websites, and other supplies such as tape can sometimes be found at heavy discounts from typical retail prices.
Aside from checking for ads that may lead to supplies, you can also post your own ad. Mention that you are offering box recycling services for local businesses free of charge. Who knows, you may strike gold!
5. Community Groups
Connecting with your community online can be another great way to find a source for boxes. Facebook Groups for your city are an incredible way to access large numbers of people. Other sites such as Reddit or the NextDoor app can also be great, if they have sections for your city. Post and ask if anyone knows of a source for free boxes. Even if no one has supplies to give, they may keep you in mind in the future, and reach out when an opportunity arises.
The key here is to go wide. Find multiple groups for your city, and post in all of them. This increases the chances that you’ll find that one person who has the perfect source of supplies for you.
Don’t Put Too Much Work In!
It’s worth calling out here that you need to think about the value you’re getting for the work you put into searching for a source for free shipping supplies. If it will take you a long time to go to collect free boxes, then it may not be worthwhile. Paying for boxes to free up that time and mindshare might make more sense. These tips regarding free boxes only work if it is a quick and easy transaction. Investing some time up front to get the relationship in place is of course an exception; that piece is worthwhile, but make sure that the work thereafter is not too intensive.
Thanks for reading to the end! If you found this valuable, check us out on Instagram, where we share awesome quick tips for resellers regularly, and make sure to subscribe to our email newsletter so you never miss our tips!
Do you have any other tips on how to get free shipping supplies? Let us know in the comments below!
