Above all, futile shipping ends up increasing business costs which are often unexpected and thus might end up being a major slice of the bottom line. Regardless of the reason whether it is moving fuel prices or surprise surcharges, logistics can change overnight and businesses must be ready. We at Americaship know how difficult shipping can be, so here are some steps you might take to overcome unexpected shipping costs related to your shipment.
In luck, the enormous advantage of an open-source website platform is that you can have a good idea of what changes might cost to add on as almost all costs are hourly rather than fixed price with modular fixes. There might have been carrier surcharges, fuel adjustments, or dimensional weight pricing that slipped through. You need to look back at your last shipments and see where the cost differences went wrong. For example, reclassification fees or accessorial charges related to incorrect weight measurements may be throwing off freight estimate calculations (FreightPros) (NTG, Formerly FreightPros). However, once those issues are diagnosed they can be resolved and used to base mapping for future shipments.
Review and Adapt Shipping Methods to Overcome Unexpected Costs
Surprise shipping costs are often the result of using methods not appropriate to your business’s needs. If you are currently rife with surcharges and your usual costs creep high from fees, it is an opportunity to branch out into other carrier choices or change up the way in which parcels get shipped. The best way to solve this would be moving toward flat-rate shipping which establishes long-term consistent rates that will not increase based solely on weight or size. Some carriers also offer volume-based discounts for businesses that ship often, so building relationships with better rate-providing carriers can help offset those surprise costs (Shopify).
Utilize Technology and Automation
Technology is one of the most essentials to cut down hidden shipping costs. Advanced shipping software will also automate how labels are created, weights calculated and carriers taken care of which can prevent errors that result in higher fees. They offer information on spot market rates for real-time pricing, along with rate comparisons to find the most competitive carrier for every load. On top of that, with the integration to transportation management systems (TMS), you can make your processes more efficient and avoid unnecessary costs by handling shipments as needed (ShipERP, Shipping Optimization Blog).
Adjust Packaging to Save on Dimensional Weight Fees
When it comes to other surprise shipping charges, dimensional weight pricing is a big one. This is because, in general with carriers, you are charged on the space that a package takes up and not necessarily just its weight. Don’t pay more than you have to and make sure your packaging is adjusted for the goods being shipped. Choose the right size boxes and shun non-compact packing materials that increase the volume of a majority of products being shipped (DF Alliance). Try to invest in packaging that applies best on the surface; it has some added benefits. Investing in packing like this reduces dimensional weight charges and saves cost shocks for you.
Partner with a 3PL When Shipping Gets Complex and Costs Become Hard to Predict
When your shipping needs reach new levels of complexity, stable relationships with third-party logistics providers (3PLs) can help bring some predictability back into the equation. Frequently, 3PLs enjoy good relationships with a multitude of carriers and can easily get bulk rates for you. They also have the skills for managing freight, understanding shipping regulations and handling customs processes. Their partnership can give you a fixed, reliable expense on shipping allowing you to escape those one-off spikes of costs (FreightPros, NTG, Formerly FreightPros, DF Alliance).
Talk to Your Customers
Shipping costs sometimes unexpectedly stall or change logistics. Your business trust of your customers remains trustworthy by informing them of any disruption or extra charges. Also, you should keep your customers informed as to when they will receive the items that are on back order and provide forewarning in case of any pricing changes so those caught off-guard do not feel duped. Inevitably costs are rising, and you may need to increase shipping prices, so what else could be done to alleviate this financial hurt for the customer (ShipERP, Shipping Optimization Blog).
In turn, these companies are better able to respond directly and immediately to the unplanned arrival of a new ocean transit cost without disruption. We work with our clients at Americaship to execute these strategies and get them set up so that we can move things smoothly, and inexpensively without tying costs in for 6 months.
Works Cited
1. 9 Common Shipping Issues and Problems and How to Deal With Them. Shopify
2. 8 Most Common Shipping & Fulfillment Problems (and how to fix them). FreightPros
3. 7 Major Freight Transportation Risks and How To Mitigate Them. DF Alliance
4. 6 Common Shipping Challenges & How to Expertly Overcome Them. ShipERP
How to get started ?
All you need to do is create an account on our platform. Simply click here (https://america-ship.com/sign-up) and fill out the form to get started. If you need assistance or have any questions, feel free to reach out to us at customer.service@america-ship.com or give us a call at (956) 410-1188. We’re here to make your shipping process as smooth as possible.