Tips to save on shipping costs
Posted on Friday, April 25th
If you’ve been using our services for some time, you know we’re always trying to work hard to bring down your shipping costs by offering you low rates, pressing the big carriers to give us exclusive rates and sending our loyal clients special offers all the time!
On phone or email, we found ourselves constantly offering advice, giving tips on ways our clients could save on their overall shipping costs. So, we thought we’d take the time to prepare a nice and (hopefully) helpful article on the various ways you could do the same.
Know your customer well
Time and time again, we see numerous redeliveries or clients paying extra on delivery charges because they weren’t fully aware of the setup of their customer’s warehouse (or premises). For example, if you’re sending a consignment to a warehouse address that isn’t open 24 hours a day, it’s a very good idea to find out the opening hours before you send the consignment out. You may think that’s common sense, and if you’ve been doing this for a while, then perhaps it is.
Another example is whether your customer has adequate space to accept the delivery. Many carriers may levy a surcharge if the delivery was not able to be made because the recipient didn’t have the necessary space for the truck to unload or a pallet to be delivered.
Whilst all of this may seem obvious, we see this happening all the time and this simple piece of information can go a long way in reducing unnecessary expenses and perhaps, more importantly, increase your customer satisfaction rates.
Fulfil orders as soon as possible
If there’s one thing we’ve learnt in all these years, it’s that in most cases, expedited deliveries is usually the result of poor planning and waiting until the last minute to send out a parcel and then having to compensate for the time lost by using a super quick delivery method!
The cost of expedited delivery is usually at least 30-40% higher and unless you’re charging for it or the nature of your product(s) warrant such as delivery method, this can be an unnecessary expenses that could really eat into your margins.
We’re pretty proud of our online Quote and Book facility and you can use it to book many days in advance so why wait?!
International Commercial Terms
This one applies to regular senders – if you ship out goods on a regular basis, it’s a good idea to familiarise yourself with the various short forms, usually a three-letter code [learn more at http://en.wikipedia.org/wiki/Incoterms] commonly used within the carrier industry.
International Commercial Terms aka Incoterms include a set of internationally agreed rules and clearly illustrate the roles of the buyer and seller in a shipping transaction.
Just like expedited delivery discussed earlier, custom duties and taxes can account for almost 30-40% of the cost of shipping, it’s a very good idea to know who’s responsible for what and then take this into account when calculating your shipping charges.