Shipping is an expensive affair. Whether you want to ship a mobile phone in a small box or dozens of watermelons in a big one, the rates are already high and are still on the rise due to the various shipment activities happening through the pandemic.
It is especially difficult for small businesses that popped up during the pandemic with everyone trying to make a living. Whatever would be the earning from the product would be slinking away as hidden charges such as extra freight and shipping charges.
If you think you could save some cash on the shipping and freight phase of your supply chain, you could check out the points below.
1. Use multiple fast loading carrier companies
Yes, multiple carrier companies for multiple varieties of packages. Every carrier company has its speciality, the one category of freight they are famous and reliable for shipping.
In the US, USPS is the best for small and medium-sized packages. Canada Post works best in Canada. Freight People is one of the best in Australia.
Depending on the package you need to ship, the delivery speed, service availability, shipping cost per carrier, etc. you can use a combination of carriers to ship your bulk. They will be delivered more efficiently and all it will do is reduce your overall expense.
2. Packaging = Optimized
Your freight cost also depends on the weight and dimensions of your package. Mainly on the dimensions of your package. Many cargo companies look at the dimensional weight – a heavy product occupying less space could be cheaper to ship rather than a light product occupying more space.
In this case, get your logistics team involved to work on package design. Try to use smaller packaging to avoid using fillers. The lesser the filler, the lesser the weight. Opt for sustainable packaging so that you can reuse that later. Smaller packaging also ensures that your product does not get damaged on the journey.
3. Insurance all packages
Product damage is very common with shipping, especially on long journeys. The products are handled by different people with different attitudes who may or may not have seen the fragile sticker on the side. Don’t ship your products without proper insurance. Estimate the value, declare it on the papers and ensure the product. In case of a mishap, now you are secured. The carriers might charge a small number of fees for insurance, but well, prevention is better than cure or a small fee is better than a damaged product.
4. Ship on off-peak days
Did you know that you could save approximately 35% of your shipping charges if you shipped your goods on off-peak days?
This sounds a little complicated but why not go the extra mile when you want to save on the cash? Plan your production to manufacture and package the goods to be shipped before the peak season starts. Monday is seen as an ‘off-peak’ day considering there are still stocks on the shelves after weekend shopping.
Advanced shipping is very convenient for non-perishable goods because there is lesser competition and the freight capacity will also be higher. All you have to do is, get yourself ready before peak season.
5. Bulk ship
Of course, the simplest answer. Bulk ship your goods. What we mean by bulk shipping is that we ship all goods of the same weight and dimensions together. Why your shipping costs add up is because different weights and tiers have different charges and hence making it an expensive affair for you.
When you bulk ship orders, your shipment weight increases, and hence the freight charge decreases. You can do the math, the bottom line is, that the more the weight to ship, the lesser you pay.
Over to you…
The prices are not going down. You can choose to continue the way you were shipping, alarmed at the humongous receipts littering your table. Or you could think and innovate the life hacks we have already given you to suit your business accordingly.
It is up to you – rigidity or change? If you are changing, know that the figures on your freight bills are also changing.