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IOL News
2 days ago
- Business
- IOL News
Save on shipping: 5 practical ways SMEs can cut delivery costs
With a recent World Wide Worx report revealing the value of e-commerce in South Africa is expected to surge to over R100 billion by 2026, these mounting expenses could pose a serious growth barrier for many smaller businesses. Image: Supplied. With rising fuel prices and fragmented delivery routes, South African SMEs are battling some of the steepest logistics expenses globally. With a recent World Wide Worx report revealing the value of e-commerce in South Africa is expected to surge to over R100 billion by 2026, these mounting expenses could pose a serious growth barrier for many smaller businesses. 'Last-mile delivery isn't just a transport problem, it's a business planning problem,' Leon Bruwer, managing director of sales, FedEx Sub-Saharan Africa said. 'If it's not managed properly, it will drain cash flow, create bottlenecks, and cost you customers,' Bruwer added. With a few smart choices, businesses can turn shipping into a competitive edge. Bruwer provides a few helpful last-mile tips for SMEs: Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Consolidate shipments and avoid death by handling fees Sending multiple small shipments during the week may seem convenient, but it quickly racks up handling and delivery fees. By bundling orders and sending fewer, larger shipments, businesses can significantly lower their logistics spend. Too many businesses rush small orders out the door, not realising how much it eats into their bottom line. Consolidation makes a noticeable difference, especially for businesses shipping across regions or internationally. 2. Go digital and take control of your costs Unexpected charges can turn a simple order into a costly mistake. The fastest way for SMEs to gain control is to use digital tools that help prevent issues before they cause problems. 'With an automated system, you can save time and money,' Bruwer said. 'These tools let you track your costs upfront, avoid last-minute surprises, and make sure everything is correctly documented. It's a small change that can have a big financial impact.' 3. Don't get caught chasing the cheapest courier It's easy to get trapped in a cycle of chasing the lowest courier quote. But businesses often pay for it elsewhere, through delayed deliveries, hidden fees, or unhappy customers. The smart money is on finding a logistics partner who offers reliability, flexibility, and real value, not just the lowest rate on paper. Choosing the cheapest option can end up being the most expensive decision. You want a partner to offer the right balance. This includes solid service, flexible delivery options, and ways to save, like loyalty discounts or volume-based savings. With a FedEx business account, for example, you get built-in discounts just by signing up. delivery speed to customer need Not every package needs to arrive the next day. Businesses can save thousands over time by selecting more economical services where appropriate. Customers are generally happy to wait an extra day or two, especially if you communicate it upfront. It's about being strategic, like using premium shipping when you need to, and standard options when you don't. That's how you protect your margins without letting down your customers. 5. Pack properly – small changes here mean big savings It's not just what you ship, but how you pack it. Oversized boxes or inefficient packing can lead to unnecessary volumetric charges. Done properly, good packaging reduces not only damage risks but also costs. 'We always remind businesses that packaging equals money,' says Bruwer. 'If your box is too big, you're literally paying for air. Efficient packaging keeps your costs lean and your products protected. It's low-hanging fruit for any SME looking to save.' A smarter delivery strategy = healthier margins
The Citizen
6 days ago
- Business
- The Citizen
Five practical ways SMEs can cut delivery costs
If delivery costs are not properly managed, they can drain cash flow, create bottlenecks and ultimately cost customers. It is important for small and medium enterprises (SMEs) to find ways to cut costs in order to stay in business. One of the things SMEs can look at is cutting delivery costs, especially with rising fuel prices and fragmented delivery routes. Leon Bruwer, managing director of sales, FedEx Sub-Saharan Africa, says a report by World Wide Worx revealed that the value of e-commerce in South Africa is expected to surge to more than R100 billion by 2026; these mounting expenses could pose a serious growth barrier for many smaller businesses. He emphasises that if delivery costs are not properly managed, they can drain cashflow, create bottlenecks and ultimately cost customers. How to cut delivery costs Bruwer gives five tips SMEs can use to cut delivery costs. 'Sending multiple small shipments during the week may seem convenient, but it quickly racks up handling and delivery fees. By bundling orders and sending fewer, larger shipments, businesses can significantly lower their logistics spend.' Bruwer adds that the mistake businesses make is to rush small orders out the door, not realising how much it eats into their bottom line. 'Consolidation makes a noticeable difference, especially for businesses shipping across regions or internationally.' ALSO READ: Mid-year financial check for SMEs: Tips to prepare for the next six months 2. Go digital and take control of your costs He says unexpected charges can turn a simple order into a costly mistake. 'The fastest way for SMEs to gain control is to use digital tools that help prevent issues before they cause problems.' He believes an automated system can save a lot of SMEs time and money. 'These tools let you track your costs upfront, avoid last-minute surprises, and make sure everything is correctly documented. It is a small change that can have a big financial impact.' 3. Do not get caught chasing the cheapest courier Bruwer says many businesses opt for the lowest courier quote, but they often end up paying for it through delayed deliveries, hidden fees or unhappy customers. 'The smart money is on finding a logistics partner who offers reliability, flexibility, and real value, not just the lowest rate on paper.' Choosing the cheapest option can end up being the most expensive decision. 'You want a partner to offer the right balance. This includes solid service, flexible delivery options, and ways to save, like loyalty discounts or volume-based savings.' ALSO READ: How SMEs can leverage cross-border e-commerce opportunities 4. Match delivery speed to customer need He advises businesses to select more economical services where appropriate, instead of trying to deliver packages the next day. 'Customers are generally happy to wait an extra day or two, especially if you communicate it upfront. 'It is about being strategic, such as using premium shipping when necessary and opting for standard options otherwise. That is how you protect your margins without letting down your customers.' 5. Pack properly – small changes here mean big savings He adds that it is not just what you ship, but how you pack it. Oversized boxes or inefficient packing can lead to unnecessary volumetric charges. Done properly, good packaging reduces not only damage risks but also costs. 'We always remind businesses that packaging equals money. If your box is too big, you are essentially paying for air. Efficient packaging keeps your costs lean and your products protected. It is low-hanging fruit for any SME looking to save.' NOW READ: Half of SMEs may not survive the next year without urgent help
