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Five Tips for Saving Money on Shipping

For a small business, shipping merchandise can be very stressful and complicated. Owners who do not properly plan their shipping can end up paying more money and potentially lose sales if they are not able to provide their customers with cost-effective delivery. It is essential for businesses to create a set of guidelines to manage their shipping services. Below you will find a list of several tips that a business owner should contemplate before shipping merchandise to customers.

Match delivery requirements and fees for common shipments.
Whether you are working with UPS, FedEx, the U.S Postal Service or any other shipping service, it is best to work with the providers small-business professional. When doing so, take the time to match the carrier’s services and fees with your businesses shipping requirements. This includes duration of delivery costs, method of transportation, etc. businesses that opt not to work with their carrier spend a nearly 40 percent more in fees. A main factor that should be discussed between businesses and their carrier is when to use ground verse air shipping. If a company needs to ship something at the last minute, air might be the only option to get eh package to its destination on time but it may cost more.

Establish transportation cost charge-back policies.
This means it is the businesses job to decipher which shipping is paid for by the business and which the customer pays for. For example, three-day shipping may be your businesses standard which is paid for by your company but the express shipping options such as two-day or overnight shipping are paid for by the customer. This information should be completely understood by the customer service department of the company since they are the once that will deal with customer questions and concerns.

Know when to combine.
If you are sending shipments between 150 to 20,000 consider calling a freight consolidation service. This is referred to as “less than a truckload.” They will combine you shipments with others to make a full truckload. When a truck is not full rates are higher. If the small business has a full truckload shipment, then the carrier can pull up to the company’s terminal and load the truck and go, saving time.”

Track carrier performance.
Measure pickup, delivery, customer service responses, access to online status online, data accuracy and meeting scheduled delivery and pickup appointment times. You can have your carrier keep a scorecard which tracts the service factors mentioned as well as costs. The cost features include package weights and distance and meeting delivery times on schedule. If a problem arrises speak with your carrier immeditly to prevent

In other words, good shipping practices should result in lower fees — and happy customers.