5 Easy Tips To Get Better Shipping

2020-09-27

International shipping has changed dramatically since the COVID-19 pandemic. We found some tips and advices that might help you get better shipping strategies.

As a cross-border seller, managing an efficient shipping strategy is critical to the success of your business. As global e-commerce is deeply impacted by COVID-19, including consumer shopping habits and logistics, it’s become more critical than ever to cut down the cost on shipping services.

 

Here we provide you with some tips on how to reduce the spending in logistics service, which could help you develop a long-term strategy. Although COVID-19 would eventually be conquered, these suggestions can go a long way toward making your business leaner and more effective.

 

  1. Compare prices and negotiate with several shipping companies.

Different shipping companies have different pricing strategies based on volume: The more you ship, the lower your rate. If you ship large numbers of packages, compare prices and try to persuade carriers to offer lower rates. "If Fed Ex knows UPS is vying for your business, you've got something to negotiate," says Jack Mitchell, president of PANCGroup, a Boston-based parcel appraisal and negotiations consulting firm. Select the most appropriate company based on your volume and the price given.

 

  1. Use packaging provided by your carrier.

Additional "dimensional fees" if your box exceeds the size regulations set by UPS and FedEx when you use your own packaging. To avoid those extra charges, consider using the packaging provided by your carrier, which doesn't have dimensional fees. By putting a one-pound box into a FedEx envelope, for example, DuBois cut his shipping cost by 15 percent.

 

  1. Select prepaid shipping.

If you use FedEx and UPS, consider prepaid shipping, which offers a discount rate of up to 20 percent. This means you buy a quantity of shipping labels upfront and affix them to packages as needed rather than pay for each package when you send it out. Prepaid shipping works best when you know you'll be shipping the same weight packages repeatedly and can determine the shipping cost in advance.

 

  1. Buy insurance from a third party.

While shipping companies charge about 80 cents for every $100 of insurance, third-party companies like Parcel Insurance Plan and U-PIC Shipping Insurance charge about 45 cents. If you frequently ship expensive items, the saving could be substantial.

 

  1. Consider hybrid services.

If your shipping order is not urgent, hybrid services like SurePost by UPS and SmartPost by FedEx could be considered as they can cost half as much as standard UPS and FedEx delivery options. These services pick up packages at your business and ship them by UPS or FedEx to the post office closest to the destination. The local mailman then makes the final delivery. One thing needs to be noticed is that they have certain volume, weight and size restrictions.

 

Finally, the contract with FedEx and UPS should be reviewed as you may find some hidden fees that you can could have withdrew and use services provided by third part to further reduce the cost. Your shipping strategies must be adjusted regularly as policies are changing from time to time, which requires you to update information in time.

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