Shipping costs can be a major expense for businesses that sell physical products. Whether you’re shipping domestically or internationally, shipping fees can add up quickly, especially if you’re not careful. Fortunately, there are several ways to cut shipping rates without sacrificing quality or reliability. Here are six strategies you can use to reduce your shipping costs:
Be Aware of Residential Fees
If you’re shipping to a residential address, carriers may charge an additional fee. This is because residential deliveries often require more time and resources than commercial deliveries. To avoid these fees, consider shipping to a commercial address whenever possible. Alternatively, you could offer customers the option to pick up their packages at a nearby carrier location, such as a UPS Store or FedEx Office.
Daily Pickup fees vs On-Demand Pickup Fees
If you’re shipping a lot of packages, it may be more cost-effective to schedule daily pickups with your carrier rather than using on-demand pickup services. This can help you avoid on-demand pickup fees and ensure that your packages are picked up consistently and efficiently.
Address Correction Fees
Incorrect or incomplete addresses can result in additional fees from carriers. To avoid these fees, make sure that you have accurate and complete addresses for all of your customers. You could also consider using address validation software to ensure that addresses are entered correctly at the time of purchase.
Avoid Additional Handling Fees
Additional handling fees can be charged by carriers for packages that are over a certain weight, size, or shape. To avoid these fees, make sure that your packages meet the carrier’s requirements for weight, size, and shape. You could also consider using lighter or smaller packaging materials to reduce the weight and size of your packages.
Avoid Oversize or Large Package Fees or Quote Them Upfront
If you’re shipping large or oversized packages, carriers may charge additional fees. To avoid these fees, make sure that you’re using the right packaging materials and that your packages meet the carrier’s requirements. Alternatively, you could quote these fees in your purchase orders (POs) so that your customers are aware of the additional costs upfront.
Dimensional weight is a pricing technique used by carriers to account for the amount of space that a package takes up in their vehicles. This means that a lightweight package that takes up a lot of space may be charged at a higher rate than a heavier package that takes up less space. To avoid dimensional weight fees, make sure that you’re using the smallest possible packaging materials for your products and that you’re not shipping empty space.
In conclusion, shipping costs can be a significant expense for businesses, but there are several ways to cut shipping rates without sacrificing quality or reliability. By being aware of residential fees, daily pickup fees, address correction fees, additional handling fees, oversize or large package fees, and dimensional weight fees, you can reduce your shipping costs and improve your bottom line.
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