The internet abounds in research, statistics, and analysis on today’s consumer behaviour, splitting hairs in time-consuming manners when purchasers’ main point of interest is free stuff. Indeed, ultimately, wanting something for nothing and the rewarding feeling of receiving things pro bono translates to shipping costs, too. Businesses sending their offerings abroad at the lowest possible prices have a competitive advantage in the face of those charging tremendous fees, despite each organisation striving to excel in this sector and gain a larger slice of the pie.
Shipping costs may cost the business considerable money as a return for losing access to the broad category of customers who don’t want to pay shipping fees or are instantly gained by companies offering free delivery. Needless to say, you don’t want your business to fall behind other giants only because they’ve better handled their bureaucratic and logistic costs and reviewed their shipping contracts. Your offerings can also gain recognition and demand, whether local or international, so let’s see what keeps today’s successful businesses in the game and mastering their delivery strategy.
Utilise the suitable packing material
The importance of using the proper protective material can’t be underrated or denied, especially in the era where every little mistake or mishap encountered at the customer’s door is transparently exposed and complained about online. Customers care about other previous purchasers’ opinions more than ever, and items that arrive broken, scratched, unfunctional, or in any poor condition different than the perfect one expected are harshly taxed.
Keeping items intact is not smooth sailing, given the many weather and transportation conditions, the long time spent between warehouses, and the whole fulfilment process involved. This exact lack of control over how safely the transportation unfolds is why there’s so much emphasis on the quality and protectivity of the material used for packaging.
Not all packing materials are the same, but often, arming up and using bubble wraps, foam inserts, and packing paper is enough to rest assured the items arrive safe and sound. Otherwise, you may face return and complaint costs. Furthermore, you risk having your reputation and word-of-mouth marketing strategy hurt, the latter of which accounts for 55% of the means customers discover new products.
Consider third-party insurance
Shipping without being backed up by third-party insurance should be out of the question if you sell high-end items, especially when they’re sent in large batches. Carriers offer a certain amount of protection and are responsible for several safeguarding practices, but pay attention to the fact that their obligations are limited and don’t cover every damage done to the shipment. In this case, third-party insurance exists to pay for the damages that the basic carrier’s coverage doesn’t.
There are several advantages you can get from relying on third-party insurance, such as:
- Extensive range of damage or loss being covered
- Streamlined claim filling and processing
- A broader range of goods being covered
- Potentially higher insurance limitations
- Generally cheaper insurance rates.
The third-party insurance service may reimburse you entirely for the costliest and most valuable packages if you get full-value coverage for this category of goods. As a thumb rule, carriers typically only throw their hat in the ring to ensure merchandise that falls within a certain value threshold.
Keep in mind that the extent of goods eligible for coverage is contingent upon the insurance provider’s policies, with certain items falling outside the purview of insurability, including those that are illegal for shipping.
Pay attention that not every item needs a huge box
Shipping rates depend a lot on the size of your box and the space it occupies in the carrier or transportation cabin, all the more since other customers’ shipments could take that space. Business owners might be tempted to believe that investing in smaller-size boxes that perfectly shelter the tiniest of their items is a time- and effort-consuming undertaking whose results will be barely visible when the line is crossed at the end of the year. Still, the truth couldn’t be further from this erroneous statement.
Not every shipment made needs that enormous box that only takes up inutile space and increases your freight costs. The smaller the volumetric weight of the batch sent, the lower the fees paid, ultimately translating to saved money despite the initial sum paid for the recipients. You’ll also save costs on bubble wrap, cushions, airbags, packing tape, and other elements, while employees will spend significantly less time conducting packaging tasks. Who knew such a humble endeavour could make it rain dollars at the end of the year?
Examine the available shipping companies carefully
Sort through the available carriers regardless of how overwhelming and exhausting it may seem. The truth is that shipping carriers often put their best abilities and assets out there to attract more potential payers. Still, it’s the little details, such as the small, hidden writing on their websites in terms of sections, that make or break the success of a collaboration. Furthermore, don’t forget to brush up on your negotiation and persuasion skills, as these two assets are allowed and encouraged when closing deals with carriers, and they expect a similar unfolding of the discussion.
For the overall process to go smoother and save yourself time otherwise spent on minutious product storing, packing, and managing, efficient businesses reach out to stock management services that handle the process from A to Z. Details such as delivery time and place are further established depending on the customers’ choices, so firms can rest assured knowing their recipients can select the most suitable alternative for them.
Send early when holidays are approaching
Holidays represent the busiest shipment periods and are often why many customers are dissatisfied with their outcomes after placing a late order. Registering growing demand on your website as the calendar winds down is nothing unordinary, which is why, every year, you need to be prepared for the hustle and bustle of that overwhelming period.
Shipping companies take advantage of similar opportunities to boost shipment costs and raise their profits, which is why prices for transportation and not only shoot up when New Year’s Eve or Christmas approaches. To prepare your customers in advance and ensure you don’t deal with too many scatterbrains, launch promotions and campaigns before the whole craze begins and ensure customers know they need to speed up the completion of their purchases.
With some early documentation, little adjustments, effective communication with insurance providers, and research to find the best value for your buck, you can reduce the shipping costs in your business and reap the benefits when you cross the bottom line.