Hacks to Save BIG on Import Costs

Shipping costs are rising, and as someone importing from places like China, India, or South America, I know you're feeling the squeeze.

It’s frustrating, but these cost increases aren’t just random—they stem from real challenges that are eating into your profits. 

First, supply chain disruptions are making everything slower and more expensive. With overcrowded ports and a shortage of workers, shipments that used to arrive quickly are now bogged down by delays that cost you more money.

To top it off, rising fuel prices are hitting you with extra fees every time you ship.

Then there's the shipping container shortage, which is driving up the price of space like never before. And with the surge in online shopping, carriers are hiking their rates just to keep up, leaving you paying more for the same service.

It doesn’t stop there—tariffs and customs duties are adding even more to your expenses, making it tough to keep your prices competitive without cutting into your margins.

And if that wasn’t enough, new environmental regulations are forcing shipping companies to use cleaner, pricier fuels, pushing your costs even higher.

It’s a lot to deal with, and unfortunately, the list goes on.

Today, I’m excited to share some tried-and-true tricks to help you cut down on your excessive shipping costs and boost your profit margins.

If you're just starting to explore sourcing products from overseas, these tips will make the process a lot smoother and give you a solid head start.

Trick # 1: Ship By Sea, Not By Air

Air freight is fast, but it’s also incredibly expensive. In fact, it can cost up to five times more than shipping by sea.

For example, sending one kilogram by air might cost $5 to $10, while shipping that same weight by sea could be as low as $1 to $2. When you’re shipping larger amounts—like four pallets or more—those savings can really add up. 

Let’s say you're shipping four pallets, weighing anywhere from 2,000 to 4,000 kilograms. If you go by air, your shipping bill could easily hit tens of thousands. But by shipping by sea, you can cut that down significantly.

Yes, sea shipping takes longer, but if you plan ahead and factor in the extra time, the savings will make a big difference to your bottom line.

Plus, sea freight doesn’t come with the same weight restrictions and extra charges you face with air shipping. So if you’re shipping larger loads and want to save money, sea freight is a smart choice.

Trick # 2: Go Full Instead of Mixed

If your shipment doesn’t fill a full 20-foot container, Less than Container Load (LCL) shipping can save you money since you only pay for the space you use.

But here's a tip: if your goods take up 70% or more of a container, Full Container Load (FCL) is cheaper. LCL adds extra handling, coordination, and paperwork because your shipment is mixed with others, increasing costs that get passed on to you.

FCL is also faster—there’s no unpacking or sorting at the warehouse, and customs tend to inspect mixed containers more, causing delays.

If you’re shipping larger volumes, filling 70% of a 40-foot container is even better for saving money than using a 20-foot container and LCL for the rest.

Though the upfront costs may seem higher, you’ll save more in the long run and protect your profit margins.

Trick # 3: Be Mindful of Tax Duties and Tariff Codes

Getting your product classification right is key if you want to avoid overpaying on taxes and tariffs. It’s surprising, but two similar-looking products can end up with very different duty rates just because of a small difference in material or function.

For example, one product might have a 7% duty, while another—almost identical—could be taxed at 33%. That’s a huge difference, especially if you’re importing in bulk. 

 If you're only shipping a few items, it might not seem like much, but once you start scaling up, those small percentages really add up.

Now, imagine bringing in a big shipment at a 20% tariff when it could’ve been classified under a 7% one. That 13% difference, when spread across thousands of units, can seriously eat into your profits.

Here’s the tricky part—your freight forwarder might not always get the classification right. They do their best, but they aren’t product experts. That’s where you come in. Doing your own research and double-checking the classifications is worth it.

By making sure your products are classified correctly, you’ll save on unnecessary taxes and tariffs, and every bit you save goes straight back to your bottom line.

Trick # 4: Only Declare the Cost of Your Goods

When you’re declaring the value of your goods for import, make sure to only list the cost of the goods—not the total landed cost. The landed cost includes things like shipping, insurance, and other fees, and adding these could make your tariffs higher than they need to be.

If your supplier gives you a price that includes delivery, ask them to break it down so you can see the actual cost of the goods separately from the shipping fees. 

Why is this important? Tariffs are based on the declared value of your goods. So, if you include shipping costs in that value, you’re also paying tariffs on those extra fees.

For example, if your goods cost $5,000 to produce, but shipping adds another $1,000, and you declare $6,000, you’ll end up paying tariffs on the full $6,000 instead of just the $5,000.

By keeping the costs separate, you’ll only pay tariffs on the $5,000, which could save you hundreds of dollars.

This small change can make a big difference, especially if you’re importing regularly. It’s an easy way to cut costs and boost your profit margins, giving you some breathing room in a tough market.

Trick # 5: Keep Each Shipment Under the Threshold

Section 321 is a U.S. customs regulation that allows for duty-free import of goods with a total value of $800 or less per shipment.

Instead of dealing with high customs duties and piles of paperwork, you can ship smaller orders without the extra costs and hassle.

For example, if you're importing $2,000 worth of products, breaking it into three smaller shipments can help you avoid hundreds of dollars in duties. That’s money you get to keep, which is a huge win when you're working with tight margins.

The process is also quicker and simpler. No more dealing with long customs clearances that slow down your deliveries and frustrate customers.

Some e-commerce sellers have saved up to 20% on shipping costs by using Section 321, and those savings can really add up when you're trying to grow your business.

Trick # 6: Take Advantage of FTAs.

Free Trade Agreements (FTAs) are deals between two or more countries that aim to reduce or eliminate barriers to trade, such as tariffs, import quotas, and other restrictions.

Depending on where you're getting your products from, you could end up paying a lot less in taxes, which puts more money straight into your pocket.

For example, if you're importing from Canada or Mexico, you should check out the United States-Mexico-Canada Agreement (USMCA). This agreement replaced NAFTA and still offers big savings for businesses trading between these countries.

 If your products qualify under the agreement’s rules, you might not have to pay tariffs at all. Imagine saving hundreds, maybe even thousands, on each shipment just by using these agreements.

Studies show that businesses using free trade agreements save around 5% to 10% on duties. That kind of savings can make a real difference when you're working to boost your profits.

Plus, those savings give you the freedom to offer better prices to your customers or invest in areas like marketing or product development to grow your business even more.

Trick # 7: Save on Shipping Time with Active Import Lanes

When choosing import routes, it’s important to think about how often ships travel along those lanes. Sticking to major ports with frequent departures gives you more flexibility and can lower your shipping costs.

For example, shipping from China to North America is much smoother than from Costa Rica. With China, there are ships leaving daily, which means less waiting time and more competition among carriers, driving down your costs.

In contrast, Costa Rica might only have monthly departures, so your products could be stuck for weeks, delaying your sales.

If you’re shipping from China, the high number of departures means your goods are more likely to arrive on time, keeping your customers happy and avoiding inventory disruptions.

In fact, China to the U.S. accounts for over 40% of all container traffic. A less frequent route can lead to higher storage fees and missed sales due to delays.

While it might seem cheaper to go with a less popular route, slow deliveries could hurt your business more than you think. Sticking with major routes not only saves money but also keeps your inventory flowing smoothly, which is key to keeping your business profitable.

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These tips have made a huge difference in my online business. They're the reason I’m able to succeed, even with the tough economy and all the frustrating changes happening on the e-commerce platforms I’m selling on.

I hope they make importing easier for you too. As for finding the right supplier, that's a conversation for another day.

Until next time!