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5 Tips for Reducing Shipping Charges for Your Business

March 30, 2018 Courier

shipping charges
shipping charges

Everyone loves online shopping. Receiving packages in the mail can be the highlight of a customer’s day. So how do you keep on top of shipping charges? Is there any way to make sure that you’re not being overcharged? And your customer isn’t as well? What are some of the things you can do to reduce the cost, while still getting packages to their owners in a timely manner? Shipping doesn’t have to cost an arm and a leg for customers. And it definitely doesn’t have to cost you that much either. Here are 5 tips on how to reduce the shipping charges your business may rack up.

1. Choose the Best Carrier for You

Your customers shop around for the best price. You should too.

Trying to find the best shipping rate for your business is an essential form of cost management. Using USPS as a carrier will save you money. Shipping priority through the post office is a great way to utilize a local resource. USPS services cost 70% less than UPS and FedEx. Try to take advantage of this in the future.

Being aware of your usage and your services is important. And being aware of alternative regional carriers will help you too. Package consolidation is always an option as well. Most major carriers offer this. Companies like FedEx and UPS use USPS’s services to get packages to your customers efficiently.

Don’t be afraid to investigate shipping rates. FedEx, USPS, and UPS all have their benefits. And sometimes smaller companies do as well.

Doing some research before choosing the right combination for your company and ultimately your customers is always a good idea.

2. Audits Will Save You Time and Money

Keeping eye on your shipping charges is a good idea. Errors can be made that might be costing you money.

Shippers should be paying attention to missed delivery deadlines, overcharges and other errors involving carriers. Auditing your shipments will help you file claims in the future. And will save you money in the long run.

You can do internal audits on your business. But if that does not seem to be working, outsourcing is always an option as well.

You should consider finding audit firms specializing in parcel spend management. According to this website, doing audits can save you anywhere from 1-15% of your weekly parcel invoice

3. Outsource Your Shipping

Outsourcing can be used for more than audits, too.

Try and see if you can find a company that may hold your items for a decent fee and take care of the shipping for you. This will take some careful research. And you must be 100% certain of customer satisfaction.

The key to a good partnership is to track all of the charges that may come. Be aware of storage fees and the fees you may get through shipping companies like FedEx and UPS.

Having a trial period with a company you’re interested in outsourcing with is absolutely a good idea as well. If you are not happy with this trial period, you can cancel it and move onto something better.

This source will help you do some more research on this topic.

4. Your Customers Can Carry Some Shipping Charges

Balance is important to think about when you’re deciding your shipping rates.

You don’t want to carry all of the shipping charges on your own. But you especially don’t want your customer to carry all of the cost either. Deciding what your rates are going to be depending on your product, is important. And will determine how much the customer is going to front.

Customers love one-day shipping and free shipping.

This is an expensive perk though. And considering many shipping costs aren’t even calculated until after the item has been purchased, can cost you.

Adding a “handling fee” to your shipping will help cover any of those background charges. Customers desire the items you are selling. So they will cover much of your shipping costs. You don’t have to shoulder every single one of those charges.

Just remember – you want that satisfied customer to come back to your business.

Having them shoulder the shipping cost is not always an effective way of covering shipping either.

5. Be Prepared for Returns

What many eCommerce businesses don’t realize is that 30% of their shipments are likely to be returned.

This is a very important aspect of maintaining low shipping charges. Being mindful of the return fees that are going to come with those returns will help you stay on top of those extra costs. Having pre-paid shipping return labels ready for your customers will help. And will also help maintain a good customer relationship.

Making sure your shipping methods are simple and well communicated will help your customers. And help you maintain a consistent business model.

Some Final Notes

Being realistic about costs is important for online businesses.

You will have to review your costs often and be ready to change. The market is always changing and a growing business will stretch all of your resources. Being aware that these changes are coming and will occasionally need review will help you maintain low shipping costs for your customers.

Don’t be afraid of these changes. Saving money is the reason why many people shop online.

And you should be able to save money as well.

How We Can Help

Finding the right carrier for your shipments doesn’t have to be a nightmare. And it definitely doesn’t have to cost you an arm and a leg.

With some careful research and strong analysis, you’ll be able to choose the carrier that will help you keep your shipping charges low.

If you are interested in shipping with a smaller company that will help you keep those costs down, look no further. We offer a wide variety of services that will guarantee your products arriving at their new home quickly.

Sounds great right?

It definitely is!

Contact us for more information. We will help you every step of the way.