For many businesses and retailers, one of the biggest expenses is shipping. With the growing preference for online shopping and the necessity of shipping goods from place to place, it’s no wonder that a shipping department can be cutting into your bottom line. Here are a few easy ways to cut costs in your shipping department and make it more efficient.
1. Charge for Shipping
People love to get a deal on shipping, but it’s important to remember how much it’s costing you. Avoid offering free shipping and make sure to charge a fair amount for it. You might consider offering free shipping for purchases above a certain dollar amount, but otherwise you should add a packing and handling fee to the shipping cost.
2. Negotiate Pricing
This process is two-fold. First, you should try to negotiate with your customer for the shipping time and price. If you’re using truckload shipping, ask the customer to wait until the truck is full (and offer a discounted shipping price, perhaps). You should also be comparing service levels among carriers and shopping around for lower parcel prices than you’re currently paying (or at least using transportation management software to do it).
3. Audit Your Freight Bills
This is something that many business owners don’t even realize that they can do. Auditing freight bills is essential for making sure that your carriers are charging you appropriately, that there are no mistakes, and that you aren’t overpaying. This is something that you can, and probably should, outsource since it’s time consuming and needs close attention to detail. Additionally, it might result in having to secure refunds from parcel carriers which can be complicated.
Do you have any questions about shipping charges, negotiating prices, or how to secure refunds from parcel carriers? Feel free to ask us about them in the comments section below. Learn more. Great references here.