Shipping Expenses: How Your Business Can Save Money

Tuesday, September 11, 2018, 6:00 AM | Leave Comment

Shipping your products can turn out to be a complex part of your business plan.

If you don’t organize these operations properly, you might lose sales or overpay for the things you ship.

If you can’t hire a logistics manager to oversee all your shipping services, there are some guidelines that can help you manage your shipping costs and save money in the long run.

Every dollar you can save improves the performance of your business.

Shipping Expenses: How Your Business Can Save Money

  • Establish Your Transportation Charges

    You should let your customers know when they might pay for shipping costs, and when you will pick up the tab.

    You may wish to implement a basic shipping package that you will absorb into your operating costs while offering faster shipping times at higher prices that the customer will pay. It’s a good idea to set these policies early and to inform your staff about them.

    Customers will know who pays for each shipping package, and you won’t lose potential sales because of ambiguity regarding shipping costs.

  • Track Your Carrier’s Performance

    Most parcel carriers are happy to work with you to create statistical baselines for how well they are shipping your products.

    If you don’t keep track of how your carrier is doing, you won’t notice any problem areas. This lack of information could lead you to pay more for shipping than you should, or affect your customer base if they are not getting their items when they should.

    You can track both service and costs factors with your carrier and iron out any problems that are impacting your bottom line.

  • Purchase Used Transportation Options

    Regardless of the scope of your shipping area, your business will need physical vehicles to move goods from one location to another.

    Large vehicles meant for the transportation of goods can be very costly if you purchase them new. However, plenty of pre-owned trailer rigs in serviceable condition are available at reduced prices from various outlets.

    You should look into mechanically sound used freightliner semi-trucks before you spend too much on something brand new.

  • Consolidate Large Shipments

    If you know you’ll be shipping out large volumes of your products, you can consolidate larger shipments into a single run to save on the overall costs.

    The carrier will combine anything that is less than one truckload into a single truck at its terminal anyway. A full truckload allows a driver to pull up to the terminal, load the truck, and leave immediately. This saves you both time and money.

Don’t let shipping your items cost more than the return you get for selling them. These are just a few ways you might be able to save money on shipping costs.

Author BIO

Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on twitter and Facebook.

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