Shipping Cost Tips Help Businesses Stay Profitable
It's inevitable. Small businesses have to ship merchandise, and the logistics of such a seemingly simple operation can be complicated and expensive if not done properly and precisely. Not only can the cost of these shipping processes reduce the overall revenue for a company, but inconsistent and flawed delivery is one of the easiest ways to lose customers and future sales that might have otherwise been attracted. So it is important to follow a few key pointers in order to get this right.
The first critical decision is to decide which shipper is going to be the most beneficial to work with in the long run. Everyone knows about the large names such as FedEx, DHL, UPS, and the USPS, but some investigative work needs to be done to find out which is the best fit. Once that base decision is made it is time to talk with a small business specialist in order to determine the best match of fees and requirements to the company's shipment types. For example, mode of transportation and delivery timing are two important aspects in this regard. It is important to know when the best time is to get a certain type of shipment out the door so that the overall cost is kept as low as possible. Further, a distinction can be made between air and ground such that various factors such as distance, weight/size, and value of the packages will be critical in decision making.
Also, it is important to establish rigid charge-back policies so that everyone involved understands when the customer will be expected to pay for shipping and when the business will take on the responsibility. Things like expedited shipping which would help to make returns and exchanges faster would probably be something that would lean towards the customer's end while a base level can be expected to be handled by the small business. As long as the guidelines are put into stated policy somewhere that the customer has been given access to and allowed a chance to read, then there is no reason to be concerned about this and everyone can rest at ease.
Postage meters, and other shipping supplies, can be another great investment for business of all sizes, but especially for those on the smaller end of the spectrum. Weighing packages accurately allows for exact postage to be determined and then postage labels to be printed appropriately as well. Guessing the weight of a package and then overestimating in order to insure that the costs are covered is a sure way to allow waste to be integrated into the budget of a company when this could all be avoided by simply investing in the desirable postage meter up front.
Freight consolidation is another great shipping cost saver that many companies are not familiar with or do not choose to utilize. There are times when it will simply make cents to include the small business' shipment with that of others as well so that a full truckload is established which will reduce the cost for everyone involved.
By taking the time early on in a company's existence in order to map out the proper logistical issues when it comes to shipping there will be greater name recognition and better overall costs which will help keep the competitive advantage needed to stay relevant in tough industries.