Whether your business is big or small, you need to find ways to cut down shipping costs. Or they will eat into the profits of your business. In addition, meeting customer expectations is vital for business.
For this reason, shippers need to find strategies to reduce shipping costs. Here are 10 easy steps to reduce shipping costs and keep customers satisfied.
Ten steps to reduce shipping costs
1. Better contract negotiations with carriers
Shipping companies need to negotiate better when signing a contract with parcel carriers. Based on high shipping volumes, shipping carriers lower the shipping rate. In addition, small businesses benefit by shipping a large number of packages with shipping carriers. They can persuade carriers to offer lower rates by bargaining with them. Shippers have the option to choose hybrid services of carriers that reduce their shipping costs. Audintel helps its clients in contract negotiations with multiple parcel carriers, thus, lowering shipping costs.
2. Utilize zone skipping technique
Several packages destined for a single location are on hold in one place. It is the zone skipping technique. Shipping carriers hold individual parcels, and then all the packages are sent together to the same destination. It saves costs per package shipping. For instance, clients want to send 100 packages from Zone 2 to Zone 8 at once rather than 50 packages at a time. In addition, shippers can avoid delays at transits and hubs. Audintel provides details of zone skipping to its clients and saves money.
3. Cut down the package weight
Heavyweight packages cost more to ship. And so it helps to trim down the weight of the packages. For instance, cardboard boxes add to a package’s weight. However, the use of small, lightweight containers helps in reducing the overall weight. In addition, it helps to save money on DIM weight pricing. Audintel helps its clients in the weight analysis of its packages and saves money.
4. Reduce package size
It is necessary for the shipping companies to know the size of the packages before it is shipped. The packages that are the right size do not attract additional expenses. Alternatively, businesses pay additional fees if a parcel size exceeds the size regulations set by the parcel carrier. Shippers have to pay a Large Package surcharge if the dimensions of the package are wrong. Audintel gives information to its clients about shipping oversized items.
5. Negotiate for discounts with vendors
Negotiations with vendors that deal with raw materials are essential. Shippers get good discounts from these vendors. Further, purchasing packaging materials in bulk quantities from suppliers results in cost savings for businesses. Affordable, reusable shipping labels and packaging materials also help to save shipping costs. Audintel assists in the negotiations of discounts with the client’s vendors.
6. Minimize packaging
Efficient use of packing materials helps in reducing shipping costs. The use of poly mailers, bubble wrap, polybags as packaging materials reduces the weight of packages. Optimizing the packaging for each product minimizes the shipping costs. Alternatively, shippers can use the packaging provided by shipping carriers to save money. Audintel has a team that can help clients in shipping products with less shipping costs.
7. Use shipping insurance
Shippers incur costs when dealing with lost or damaged packages. Thus, long-distance shipments need insurance. In addition, it is best to use insurance for high-value shipments. Businesses can explore cost-saving insurance options offered by third-party insurance providers. Audintel offers to advise its clients regarding shipping insurance for products.
8. Optimal location of fulfillment center
Shipping packages close to where customers reside saves shipping costs for businesses. Additionally, it reduces delivery time, thus keeping the customers satisfied. Shippers need to understand their shipping destinations to lower the transit times. Hence, the optimal location of a fulfillment center is necessary to reduce outbound and inbound shipping costs. Audintel advises clients of the use of fulfillment centers depending on their shipping needs.
9. Choose Prepaid shipping
Shippers who consistently ship packages of the same weight and size can choose prepaid shipping. Businesses get better discounts from parcel carriers with prepaid shipping. It allows shippers to buy shipping labels upfront for their packages and use them when they ship out. Audintel advises shippers about prepaid shipping as per their needs.
10. Consider all the shipping fees
Parcel carriers have more than 75 special charges. Shippers need to be careful about the surcharges added to their billing accounts. Surcharges like Saturday delivery charges, special handling fees, etc., that do not apply to shippers should not be a part of the billing account. Audintel helps clients keep track of all the shipping fees charged by parcel carriers, thus saving money.
The bottom line
Careful monitoring of shipping costs can determine the success of businesses. Companies can save escalating shipping costs by using Audintel’s unique software solutions. The shipping needs of shippers are carefully taken into consideration by our managerial services. We offer to help negotiate carrier rates to reduce shipping costs. Discover further about reducing shipping costs by contacting us at [email protected] To know more about our services, visit the Audintel website or call us at +1 (619) 354 8539.