Every business knows how much shipping can eat away at their revenues. Amazon, the biggest retailer in the world today, is looking to operate its own fleet to cut down on shipping costs.
Shipping costs are the bane to any company’s existence. Whether you’re a manufacturer or a retailer, you know how expensive shipping can be. The only aspect that is saving you right now are cheaper oil prices – if it wasn’t for that then your shipping costs would be a lot higher now.
For a small- or medium-sized business, one of the best things you can do is to select the right shipping company, become a long-term customer and always negotiate the best terms. Until we have teleportation devices, the cost of shipping will remain a massive expenditure.
Here are five ways you can save money on shipping by choosing the right shipping company:
1. Take Advantage of a Postage Meter
When you want to avoid having the carrier guess the weight of your package and then being required to buy extra postage, you should purchase a postage meter, especially if you ship a lot.
A postage meter is a portable device that has a scale attached to it already that weighs each package, prints shipping labels and examines the precise postage charge. It’s convenient. By having a postage meter with you, you can eliminate additional charges.
2. Monitor the Carrier’s Performance for Discounts
Did the carrier damage a package? Was the carrier two days late? Has a product gone missing?
Whatever the case, it is important to monitor the carrier’s performance all the time. The reason for this is because if the company makes a mistake then you should be discounted for it. In the world of shipping, every kilometre and loonie counts.
3. Use Flat Rate Shipping
If you want to get the best bang for your buck then you should consider flat rate shipping.
Every major shipping firm provides customers with flat rate shipping options – they’ll even offer flat rate boxes for nothing. The flat rates are established by zones or distance. If this is overwhelming then be sure to consult with your area’s representative to learn more.
4. Get the Most Out of Your Shipping Needs
To get the most out of your shipping requirements, one of the best things you can do is to encourage your customers to purchase more at the checkout. Rather than having to ship a Boston Red Sox t-shirt or a Casio watch for $10, you should get them to spend $50 to get free shipping.
This not only minimizes the cost of shipping, but you also earn a few extra dollars.
5. Apply for Shipping Refund if Possible
Did you know that most shipping refunds go unclaimed? This is money sitting on the table waiting to be picked up. Why aren’t you claiming this dough?
Oftentimes, no matter how reliable they are, many of the shipping companies are unable to meet their guarantees, which means that you can claim a refund. Unsure what to do exactly? It’s simple: use a package auditing firm, a company that managing your shipping accounts and seeks out refunds, discounts and other pecuniary-related elements.
It will cost you, but it’s a worthwhile investment if it means lowering your shipping costs. When a company like Amazon, the biggest brand in the world, is having a hard time reining in its shipping costs then at least you can take solace in the fact that it isn’t just you.
The Jeff Bezos-led corporation is experimenting with everything – airplanes, ships, drones, etc. – and perhaps it’s time for you to do the same thing. It begins with the shipping company that you choose; it must be the right one, otherwise your shipments will imbibe your revenues.