“Fast delivery” and “free shipping” are the terms keeping businesses on their toes. Small business owners have to fulfill customers’ expectations while keeping shipping costs down.
It is difficult for small businesses as they know the expenses involved in shipping. In addition, shipping carriers increase shipping rates each year. Here, we will cover the ways to lower shipment costs and make profits for companies.
Factors affecting shipping costs
Reducing shipping costs is vital for increasing profits in businesses. The main factors affecting shipping costs include
- Speed and service
- Weight and dimension
- Shipping destination
- Shipping volumes
These factors affect the calculation of shipping charges. However, shippers can reduce expenses by making changes in shipping methods.
Ways to reduce shipping costs
69.8% of online shoppers abandon their carts due to extremely high costs (research by Baymard Institute). The rise in shipping costs is due to various reasons. It could be due to taxes or shipping rates. As shipping companies have no control over taxes, there are some ways to reduce shipping costs. We, at Audintel, advise our customers about ways to save money. Here are five easy ways to lower shipping costs.
1. Use of modern tracking software
Shipping companies should use tracking software such as transportation management software (TMS). The software help shippers track their shipments. The tracking tools provide an accurate shipment delivery time. TMS gives shippers an edge over shipping carriers when requesting refunds for late deliveries. Audintel screens the packages and files a refund for our customers. Our automated software guides shippers’ insights into real-time shipment processes.
2. Managing shipping rates
Shipping carriers offer different shipping rates and delivery services to customers. Software like TMS gives businesses insights about shipping carriers. Shippers can choose from a list of shipping rates that suits them best. Audintel gives comparison data about the carriers’ rates to shippers. Audintel provides analytics to support shippers in making decisions regarding shipments and save money.
3. Negotiate the best price with shipping carriers
The core of each shipment is a well-negotiated deal. As a result, negotiation with shipping carriers is vital for companies. Shippers negotiate for a flat shipping fee to reduce costs. Shipping carriers like FedEx, UPS offer better rates for packages based on the size, weight, and destination. Audintel aids shipping companies in negotiating the best price with shipping carriers. We negotiate discounts with different shipping carriers for businesses. So shippers benefit from discounts offered by the shipping carriers.
4. Educate shippers on the shipping process
Shippers hate unexpected charges in their invoices during the checkout process. Shipping companies need to understand the complexities of the shipping process. Shippers need to decrease the size of the packages to save money. For instance, use a poly mailer instead of a box. In addition, companies need to reduce the weight of the parcels. For example, use lightweight packaging material. Audintel provides essential services to companies to bring down costs. We do a thorough audit to curb any mistakes caused by shipping carriers. Our checkpoints halt improper invoicing done by shipping carriers.
5. Streamline the entire shipping process
The entire shipping process from end to end needs streamlining. Companies have to optimize the supply chain model to increase profit margins. Alternatively, shippers need to pay attention to customers’ requirements. Shipping companies need to adopt processes with efficient planning. Audintel provides business models to its customers that cut shipping costs. We advise shippers about shipping strategies to increase profit margins. Shipping small parcels can be made seamless with low shipping costs.
These cost-effective ways potentially help shippers to save money and increase profit margins.
Let Audintel audit your shipments to cut undue expenses.
Shipping companies can rest easy by letting Audintel audit and manage their profiles. Our services customize tracking of shipment packages. Audintel’s shipping software provides access to the best shipping rates. It allows shippers to compare rates, pick the best one, and save time. We aid shippers in negotiating good deals. As a result, our customers receive best-in-class services and discounts. In addition, we provide shipping strategies to customers that help in reducing shipping costs.
To sum it up
Shipping is an integral part of all businesses, whether big or small. Hence, managing the shipping costs of shipments becomes crucial. With this in mind, partnering with audit companies is essential. Audintel keeps track of shipments and streamlines the process giving shippers peace of mind. The analytics provided by Audintel helps shippers to save money. If you need help in reducing shipping costs, contact us at [email protected]. To know more about us and our services, visit our Audintel website or call us at +1 (619) 354 8539.