March 31, 2016

Top Five Ways (and more) to Gain Control of Your Shipping Costs

Author: Bill Bonato

Shipping costs can take a big bite out of a small business budget. In fact, for most companies, depending on their industry, the shipping budget typically represents anywhere from 3% to 7% of total revenue. The good news is there are many ways to cut costs, from renegotiating your carrier agreements to “no-rush” options and easy-to-use tools.

  1. Reduce or eliminate air waybills: Use an automated system to audit invoices for fraud, address errors and gain access to carrier discounts.
  2. Determine if you really need signature delivery: Use email notifications and electronic return receipts for delivery confirmation, unless a signature is needed.
  3. Examine the true delivery needs of your recipients: Find out when your customers expect delivery. Eliminating unnecessary overnight or rush shipping and optimizing delivery times can significantly reduce costs.
  4. The Thursday/Friday factor:  Both Thursday two-day shipping and Friday overnight service mean Monday delivery. And, while some carriers consider Saturday a business day, others apply a surcharge. Before you add extra charges, confirm your customers’ delivery expectations—Thursday two-day service may work just fine!
  5. Educate your organization about preferred services and carriers: Realize big costs savings by eliminating “onesie-twosie” shipments that go into drop boxes. Broadly communicate preferred carrier rates and services to your organization and consider tools that centralize shipping.

For more tips to avoid small business shipping at big ticket prices, read the full report, 10 Ways to Gain Control of Your Shipping Costs Today.

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