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Last Updated on December 28, 2020 by Work In My Pajamas
Shipping costs can dramatically narrow the profit margins of a business. Trying to fix shipping operations, however, can be one of the most complicated tasks if done with poor or no planning at all. It can result in owners overpaying for courier services as well as diminishing sales if the business cannot keep up with the same high quality demand their customers need and expect.
For businesses that do not ship multiple large items at a time or cannot afford to hire logistics professionals to manage their shipping operations, having a plan is imperative.
Work With The Right Delivery System
This step is pretty simple and straightforward. All the big players in the shipping industry, such as US Postal Service, UPS, DSL, and FedEx disclose services and prices on their respective websites. There’s also free to use websites that compare different shipping vendors.
Most major shipping providers also have representatives who will meet with business owners to construct a compatible shipping infrastructure that is both affordable and reliable. Many small business owners think they aren’t big enough to bargain prices with shipping vendors, but the truth is they can.
Who Pays For What
Establish policies that explain which situations the business owner will pay for shipping and situations where the customer pays for shipping. Three-day parcel delivery is the industry standard service paid for by the business. If the customer requires expedited delivery, such as Same-Day or Overnight delivery, the customer may have to pay an extra premium fee.
What if the customer changes his/her mind and wants to exchange the item for a comparable one? Experts advise businesses to just cover the shipping costs for situations like this to avoid losing customers.
Capitalize On Technology
Particularly, the use of a postage meter, which is a portable device designed to weigh packages, assess precise postage cost, and print corresponding labels on the item. Such technology can help remove the need for couriers to guess how heavy the package is, which ends up with you overpaying for extra postage.
Another technological advancement in the shipping industry is stretch wrappers like SIAT S.p.A, which automates the labor-intensive process of wrapping different sized items in a smooth and air-sealed container. Stretch wrapping technology promotes safety and quality assurance for all items.
Shipping is one of the key departments of any business that sells a product. Optimizing shipping operations can greatly benefit your business through improved sales and profit as well as a higher customer retention rate.
