March 2022 - Audintel

Reducing shipping costs with insightful shipping reports

Reducing shipping costs is essential for businesses. So, what are the factors affecting the rise in shipping expenditure? Shipping reports provide answers.

E-commerce businesses in 2022 are increasingly finding it difficult to lower their shipping costs. The reasons behind this are many. To begin with, the general rate increase announced by FedEx and UPS is more than last year. In addition, the economic situation has led to a fuel price hike. Further, additional surcharges are making matters worse. Thus it is essential to know the best way to reduce shipping costs. This article explores the factors influencing the rise in shipping costs. And how shipping reports are helping businesses reduce shipping costs.

Why is reducing shipping costs essential?

Shipping costs affect a business’ profitability. The growing demand for E-commerce goods has put pressure on parcel carriers to deliver goods faster. As a result, parcel carriers have increasingly adjusted their rates based on the shipping distance. Further, parcel carriers calculate the shipping expenses based on the availability of the warehouse area. Therefore, lowering shipping costs is essential for shippers to improve their margins.

Factors affecting shipping costs

Shipping costs are affected by many factors. We had earlier discussed ways to reduce shipping costs. But, the main factors that affect shipping costs include:

Fuel costs

The price of fuel surcharges has skyrocketed in the past year. The global supply chain disruption has caused an increase in fuel prices. Also, no additional crude oil supply is on the horizon for the US. Shipping parcels to far and remote destinations is costs more for shippers. Shipping to higher shipping zones for domestic shipments in the US is more expensive.

Package weight and dimensions

Shipping heavy packages lead to businesses paying more for shipments. Larger boxes mean an increase in the dimensional weight of packages. Shipping costs are rising due to the oversize dimensions and weight of parcels. Bulky, oversize packages cost more for shippers. In addition, FedEx and UPS charge a dimensional fee for customers using their company boxes.

Packaging

In addition to the weight and dimensions of packages, the packaging material is vital. Filling a parcel with padding material will increase the weight, thus increasing the shipping costs. The cardboard used for packaging increases the overall weight of packages. Further, multiple boxes are responsible for the rise in shipping expenses for businesses.

Delivery surcharges

Not only general rate increase, but delivery surcharges also contribute to rising shipping costs. Small and medium-sized businesses will be hit hard with the significant rise in delivery surcharges in 2022. Additional handling and oversize package surcharges are increasing for shipping zones across the US. Further, parcel delivery to residential areas will be costly with the rise in residential charges by UPS and FedEx.

Shipping speed

Any large or small business promises on-time, fast delivery of products. However, expedited shipping charges are eating into the expenses of shipping businesses. Express services offered by FedEx and UPS may save time for shippers. But, they increase the overall shipping costs.

Parcel carriers

Each parcel carrier offers a variety of services. Big parcel carriers like UPS and FedEx have a general rate increase annually. Shippers feel the effect of price rise in the services opted by them. Many businesses stick with a single shipping carrier for shipping parcels. Shipping businesses lose out on the discounts and deals offered by different parcel carriers for various services.

How do shipping reports help in reducing shipping costs?

Shippers need comprehensive solutions to mitigate the factors causing the rise in shipping expenses. It is where shipping reports are helpful for businesses. Searching, sorting, and viewing shipment information is possible with shipping reports. Shippers can plan their shipping strategies based on the data available in the shipping reports. The reference number of the shipment, type of service, pick-up, delivery dates, taxes, insurance, etc., are monitored by shipping reports. In addition, the past and present shipment details for a particular time frame are a part of the shipping reports.

Lower shipping costs with shipping reports of Audintel

Shipping businesses often wonder where their money is spent the most with each parcel delivery. With Audintel, shipping businesses have the advantage of getting customized shipping reports. Our intuitive software provides detailed information about each parcel shipment. We have experts who can track and monitor each aspect of parcel shipments. The actual weight and dimensions of packages are in shipping reports so that clients know where to save money. Audintel advises clients regarding the best, most affordable services of the parcel carriers. We help clients negotiate with shipping carriers on data points such as fuel costs, delivery surcharges, and more. Audintel prepares more than 85 shipping reports. In-depth shipping information is available for clients through shipping reports.

Final thoughts

A rise in fuel prices is having a cascading effect on shipping businesses. Shippers are looking for avenues to reduce their shipping costs and save money. And so, Audintel offers robust shipping reports that provide insights into each aspect of package shipment. Our shipping reports are comprehensive reports that help shippers lower their shipping costs. According to a client’s convenience, shipping reports allow a quick peek into each parcel shipment. To know about our shipping reports, you can call us at +1 (619) 354 8539 or contact us here. Please visit the Audintel website to learn more about us.

Package late by a minute: request a UPS GSR, get a refund

The priority for a shipper is to ensure parcels reach customers on time. Moreover, customers also expect the same from their shippers. But, if the parcel delivery is late, there are chances that the customers may not do business with the shipper again.

As a result, shippers loose out on business and money. Further, not all shippers request a refund from parcel couriers in time. UPS and FedEx have Guaranteed Service Refunds (GSR) for service failures. This article explores UPS GSR for late package deliveries. In addition, we discuss the UPS services entitled for GSR.

UPS Guaranteed Service Refund for late package deliveries

As discussed in our earlier blogs, UPS guarantees on-time delivery of packages to 50 US states. In addition, UPS guarantees a refund for each shipment delayed. However, UPS does not give a refund due to certain conditions or restrictions mentioned on the UPS website. UPS Guaranteed Service Refund does not apply to packages with a Large Package Surcharge or Additional Handling charges. In addition, shipments made around the holidays are not eligible for a UPS refund.

What are the UPS services eligible for UPS Guaranteed Service Refund?

UPS Service Guarantee has updated rules for 2022. UPS had to suspend its money-back guarantee in 2020. But now, some services are reinstated. From April 5, 2021, UPS Service Guarantee is offered for the following services:

UPS Next Day Air® Early

This service guarantees early morning delivery for time-critical shipments. The delivery of packages is by 8 AM to major US cities.

It is for time-sensitive shipments with guaranteed overnight service. Further, there is an extension in the delivery time of parcels to residential locations from 10:30 AM to 12:00 PM.

UPS Next Day Air Saver®

It is an overnight service that is less costly than UPS Next Day Air®. In addition, the delivery time is till 11:59 PM on the guaranteed day of delivery.

UPS Worldwide Express NA1®

This service provides guaranteed next-business-day delivery to businesses in the US. Also, it is a fast shipping service to Canada, Mexico, Central, and South America.

UPS Worldwide Express Plus®

An international service that sends parcels early in the business day.

UPS Worldwide Express®

It is an international service that guarantees deliveries to 140 countries.

UPS Worldwide Express Saver

It is an economical international service that ensures package delivery during the day.

UPS Worldwide Saver®

An international service that guarantees delivery of packages to 220 countries by the end of the business day.

UPS Worldwide Express Freight® Midday

It is an international freight service to 35 countries with guaranteed delivery by 12:00 PM or 2:00 PM.

UPS Worldwide Express Freight®

International, guaranteed service for urgent, high-value freight of more than 150 pounds.

The above UPS services are for time-sensitive shipments. So, if there is a delay even by a minute, shippers are entitled to a refund from UPS. Shipping businesses need to identify each delayed shipment. Further, shippers have to request a refund from UPS.

How is a UPS GSR request made?

The shipper can request a refund in 2 ways

Calling 1-800-PICK-UPS (1-800-742-5877) and saying “Refund” or
Logging into the UPS Billing Center.

How to file a GSR in UPS website?

Step 1: Log in to UPS Billing center and navigate to “View & Pay Bill” page.

Step 2: UPS has two options to file for a GSR refund- “My Invoices” and “Dispute History & Refunds”.

Step 3: First option – Select “My Invoices” and select the invoice number and its tracking number for which the refund has to be claimed. Select Dispute option for the tracking number. Select the dispute reason and dispute level.

Another option is through “Dispute History & Refunds”. Select “Request Service Refund” in “Dispute History & Refunds” page. Select the Dispute ID and enter the tracking number.

The UPS Billing Center is accessible to shippers having an account with UPS. The request will be within fifteen days of the originally scheduled delivery date.

What happens after the submission of a UPS GSR request?

After approval of the refund request, UPS will credit or refund the transportation charges to the shipper. The credit is visible in a section in later UPS invoices. However, transportation charges will not include all other surcharges. UPS Service refunds information is on the UPS Tracking Details page.

Recovering UPS GSR made easy by Audintel

Imagine a business having more than twenty packages shipped per day. It would be difficult for companies to keep track of each late parcel delivery. Also, each delayed parcel will have a request for a refund from UPS. Businesses will need to hire resources to do this every day, thus increasing costs. Audintel has customized dashboards and auditing techniques that help businesses in recovering money. We seamlessly track each shipment and monitor it for late delivery. Audintel requests UPS refunds for late deliveries on the client’s behalf. Our team ensures that UPS Service Refunds are deposited directly in their client’s accounts.

Summary

Customer satisfaction is paramount for all businesses. So, late delivery of packages is harmful to further business growth. Moreover, shippers lose money if they do not request UPS refunds for late deliveries of parcels. Audintel audits shipments and retrieves money for its clients. Learn how to save money and track refunds by contacting us or you can call us at +1 (619) 354 8539. Visit the Audintel website to know more about us.

UPS, FedEx shipping zones: an easy guide on shipping zones

Saving on shipping expenses is essential for e-commerce businesses. But, it gets confusing figuring out the shipping rates of different parcel carriers? UPS and FedEx have different shipping rates based on various factors, including shipping zones. Hence, knowing about zones is equally vital for businesses. In this blog, we will discuss the shipping zones of UPS and FedEx and their significance.

So, what are shipping zones?

Shipping zones are the geographical areas for the delivery of packages. The zones consist of a set of zip codes. Shipping zones give the distance a parcel takes from its origin to its destination. The zones are not universal or fixed. The zones vary according to the type of service and the weight of packages. In addition, each parcel carrier has different shipping zones. There are eight domestic shipping zones for the 48 US mainland states. A ninth shipping zone is for the US territories beyond the mainland.

Significance of zones

Free and fast shipping are essential for today’s customers. For this reason, keeping a tab on shipping rates is necessary. Shipping zones help in determining the shipping rates of parcels. In addition to the weight of packages, the dimensions also affect the shipping rates. Further, the cost and time of delivery of packages are vital factors in calculating shipping prices. For example, a parcel to be delivered in the same Zone (Zone 2) will take less time, less fuel, and will cost less when compared to a higher zone (Zone 8). Higher shipping zones cost more for size-able packages.

FedEx shipping Zones

Every year FedEx publishes its service guide with updated shipping rates by zone and weight. Shippers need to enter the package’s destination zip code to calculate the shipping rate. The standard FedEx zones start from zone 1: 0-50 miles till zone 8: More than 1801 miles. FedEx zones are available for both domestic and international shipments. Also, FedEx Express services deliver parcels fast, which is beneficial for businesses promising quick delivery. Further, FedEx offers negotiated rates for shippers with high-volume packages.

UPS shipping Zones

Shippers can understand the UPS shipping zone by entering the destination zip code on the UPS website. In addition, shippers can download the zone chart table. It gives information about shipments starting with the first three digits of the recipient’s zip code. For instance, the destination zip code which starts from 004 is Zone 2 for UPS ground services, and Zone 302 for UPS 3 Day Select service. Further, shippers can calculate the shipping rates by learning about UPS shipping zones.

Advantages of understanding Shipping Zones

Shippers benefit by learning about zones. As a consequence, they can strategize by:

Lowering Shipping costs

Shippers can reduce the transit time of products by partnering with third-party logistics companies. When shippers’ products are spread over many fulfillment centers closer to customers, it will keep shippers from paying high prices. Alternatively, shippers can reduce shipping costs with a single fulfillment center in a location where there are many customers.

Offering free shipping services

Shipping businesses offer customers free shipping if the parcel delivery is in the same zone or the next one. If the parcel is of a specific weight, shippers can give free shipping to customers.

Zone Skipping strategy

Additionally, shippers use zone skipping strategy to move the parcels near customers or the destination. Businesses can store their products in selective warehouses in some zones. Then, they can deliver the shipments to customers as and when required. For instance, FedEx Ground Economy uses the United States Postal Service (USPS) for the final-mile delivery of parcels. It helps in reducing the shipping costs.

Ability to choose the best parcel carrier

Shippers can choose a reliable parcel carrier to deliver their parcels by understanding the different zones. UPS and FedEx have different shipping rates for different shipping zones. Based on the services adopted by customers, shipping businesses can choose which parcel carrier delivers the parcels quickly and efficiently.

Audintel advises its clients regarding UPS and FedEx shipping rates. We understand the complexities of UPS and FedEx shipping zones. When shipping packages, our experts help clients choose the type of service and provide tools like rate calculator to compare between carriers. Audintel helps clients in negotiating agreements with parcel carriers.

The bottom line

UPS and FedEx shipping zones vary from each other in terms of service, weight, dimensions of packages, etc. But, this knowledge is necessary for shippers when negotiating with parcel carriers. Shippers can negotiate for discounts and other incentives by understanding the intricacies of zones. And so, if you are a shipper looking to deliver goods at fast speed and low costs, read on about UPS and FedEx shipping zones. For further clarification, you can call us at +1 (619) 354 8539 or contact us by clicking here. In addition, you can visit the Audintel website.

Our top ten reasons for delays in UPS and FedEx shipments

Online shopping has both been a boon and a bane for retailers. There is a rising demand for on-time delivery of goods in a day. Shippers and parcel carriers are racing against time to meet customers’ expectations. But even so, UPS and FedEx shipments are delivered late.

Delayed shipments negatively impact customer experience, thus causing loss of revenue. Why are UPS and FedEx shipments delayed? In this blog, let us study the top ten reasons for shipping delays.

Top ten reasons for delays in UPS and FedEx shipments

There are many reasons for UPS and FedEx shipping delays. FedEx and UPS shipping locations play a vital role in delayed shipments. In addition, UPS and FedEx delivery times vary depending on the service chosen by shippers. So, selecting the correct parcel carrier is essential for order fulfillment. Listed below are the top ten reasons:

Weather-related delays

Bad weather conditions are one of the causes of shipment delays. Inclement weather, such as blizzards, tornadoes, rainstorms, etc., makes it difficult for FedEx and UPS drivers to make deliveries on time. These delays are not eligible for a money-back guarantee by UPS/FedEx. Shippers need to inform their customers in advance of weather-related delays to show commitment to customers.

Disasters

UPS and FedEx shipment delays are due to natural and human disasters. Recently, pandemics, wars, social and political unrest, famine, floods, fires caused many shipping delays. Restrictions on the movement of goods and people have adverse effects on transportation. Hence, the delay in UPS and FedEx shipments.

Wrong documents

Several documents accompany UPS and FedEx packages. A delivery exception occurs when a parcel’s label is wrong. A commercial invoice containing the items expected by the customer is to be a part of the package. Improper documents need to be rectified, thus delaying the shipments.

Illegal or Hazardous materials in a package

UPS and FedEx label some goods as prohibited and restricted items. These goods include:

Alcoholic beverages
Ammunition
Firearms and weapons
Live animals
Precious metals
Fresh food and more

The entire list of prohibited and restricted items is available at UPS and FedEx sites. Shippers need to provide a declaration regarding the goods before they can be delivered. As a result, delivery delays occur.

Missing custom clearance documents

It is necessary to have custom clearance documents for international UPS and FedEx shipments. The documents include a commercial invoice, certificate of Origin, North American Free Trade Agreement Certificate of Origin, Electronic export information, and shipping label. The package is held at a customs facility or the carrier’s distribution facility when any documents are missing.

Incorrect address

Packages need correct addresses for on-time delivery. Wrong addresses on packages cause delays in FedEx and UPS shipments. For instance, customers having several delivery addresses may give the wrong address to shippers. Or shippers’ systems may enter the incorrect address for the package. Further, a delivery executive may deliver the parcel to the wrong apartment by misreading the label. Whatever may be the reason, the parcel carrier has to pick up the package from the incorrect address and deliver it to the correct address, thus causing a delay.

Holiday surge

Thanks giving, Christmas, or any National Holiday benefits businesses. However, due to the increase in shipping volumes, customers are advised to shop early. Ideally, parcel carriers offer holiday deadline dates, so customers get their packages in time. But, holiday shipments may overwhelm parcel carriers’ capacities, thus causing delays.

Unavailability of the recipient for package

For package delivery, FedEx requires a recipient’s signature to deliver parcels. Sometimes, at the time of delivery of packages, recipients are unavailable at the address. But, if the recipient is a business, and a parcel arrives outside business hours, FedEx attempts delivery another day. Failed delivery attempts by parcel carriers are the reason for the return of shipments by parcel carriers.

Poor performance of shipping carriers

Shipping carriers may suspect illegal items in packages and therefore delay shipments. Further, UPS and FedEx have different delivery times and schedules for various packages. Alternatively, prioritized parcels may get preference over others. Shipping carriers’ performance is poorly rated even if a package arrives late at a fulfillment center. All these factors cause delays in shipment.

Staff shortage

UPS and FedEx face labor shortages for many reasons, including pay and benefits. For the past two years, shipping carriers finding it difficult to retain employees. It is mainly due to people opting for working from home and not wanting the stress of blue-collar jobs. Thus, causing an impact on UPS and FedEx delivery times.

How to prevent UPS and FedEx delivery delays?

Shippers need to address the areas where the delays are occurring. Our tips for preventing UPS and FedEx shipping delays include:

Cross-checking shipping information for incorrect addresses and shipping labels
Open communication with customers regarding delays due to bad weather and disasters
Automating the custom clearance documents and other necessary documents
Order in advance to beat the holiday surge

Partnering with Audintel helps shipping businesses keep track of each shipment. Our clients benefit immensely from our customized dashboards and shipping reports. Shippers receive refunds for delayed shipments from parcel carriers with ease. Audintel‘s team helps shipping businesses to negotiate good carrier contracts and save money.

Conclusion

Delivering packages on time is easier said than done. There are lots of variables involved when UPS and FedEx deliver packages. Our top ten reasons for delays in shipments and ways to prevent delays give a brief insight regarding delayed shipments. However, keeping track of delivery expectations is best left in the hands of experts, like Audintel. We help shipping businesses deal with UPS and FedEx shipping delays. Still unsure about what to do in case of shipping delays, call us at +1 (619) 354 8539 or contact us by clicking here or visiting the Audintel website.