Shipping freight can lead to serious expenses for a new business, especially if all the shipping costs fall on the company. Even when clients pay for shipping, your firm still needs to handle the logistics of the shipment, which can be a drain on resources all its own.
If you want to save money, try the following three strategies.
1. Explore your options
Not all shipping companies offer the same rates. True, many are in competition with one another, but based on your location, you probably have a unique selection of rates that apply. Your current fees are not necessarily the lowest, so check out rates based on the type and weight of your shipments.
Typically, FedEx and UPS offer competitive rates for heavier packages, but again, packaging and location play very important roles.
You should also look into less expensive methods of shipping. Air delivery tends to offer quick delivery, but is it really worth the expense? Chances are good that only a fraction of your customers use it and the costs may be too high to make air freight worthwhile.
If you really want to deliver by air, then try to divide your shipments and only send absolutely essential products via express delivery.
2. Manage your overages
You may be able to save money by changing the way you pack. Most shipping companies require extra fees if your DIM or dimensional weight reaches a certain level.
If you’re paying extra for oversize charges, you could be expending unnecessary funds. Managing package weight and size could allow you to choose different, less expensive options.
Try to condense products into a smaller space if possible; or spread out especially dense packages to avoid weight problems. Finding the sweet spot between size and weight may help you save dollars on every shipment.
3. Utilize programs
Dozens of different programs exist to help you save on shipping; you just have to watch for them. Using a shipping service like Endicia can make discounts on express mail available for long-time customers.
Trade associations and organizations in specific industries like housewares often make discounts available for major carriers like UPS and FedEx. Sometimes even long-term relationships with your supply vendors can yield discounts if you request them.
For more in-depth savings, consider entering into a contract with a shipping broker or an order-processing company. These services may allow you to ship more effectively and efficiently. There can also be key savings in time, allowing you to focus on other aspects of your business.
Originally posted on October 17, 2013 @ 7:48 am