Electronic retail businesses are forever looking for ways to bring down costs of shipping and freight forwarding for their shipping operations. This is required to bring to the table more economical models at times when an enterprise maybe struggling with shipping costs that lead to free or low cost product deliveries to their customers.
Of late, many sellers have been entering new markets in foreign lands. Foreign lands raise delivery and logistics costs. However, the challenge of higher logistics costs can be overcome by various methods. Read on to understand some of them
- Comparing rates of multiple companies
Keeping a constant tab on the various shipping rates provided by different companies can be really challenging. Yet, it is a good practice that will help you find better prices every time. Carriers keep on changing their price schemes as per the size of the package or good options on shipping in bulk.
- Exploring trade associations and group discounts
It is beneficial for your freight forwarding company to be a part of professional associations. This allows your operations to avail a variety of discounts. Many studies point out that membership of these associations can help members cut down half the cost of shipping. The catch here is the ratio between the savings made and the membership costs of these associations.
- Fulfilment services
You should outsource operations such as storage and handling to professionals with an expertise in this area. This will not only reduce costs involved in these operations, but will certainly bring down the time and energy consumed. This time and energy can be utilised towards the fulfilment of other customer satisfaction points.
- Cutting down on shipping material
International or Indian freight forwarding companies should understand that many a time carriers charge for the weight of the package as well as the dimensional weight. Dimensional weight is the volume of the package in ratio to its weight. The dimensional weight can be reduced by understanding the following factors.
- Make use of a small pack for each shipment made.
- The packaging material used should be lightweight.
- The dimensional weight of a package can be reduced by making use of a variety of box shapes.
A simple understanding of shipping operations will show you that weight and distance are the major factors that determine the costs of your shipment. Reducing the distance may not be in your control but you can limit the weight in order to keep the costs to the minimum.
· Proper auditing
In the shipping business, it is a good idea to be alert and cautious about wrong invoices. Even in time computerization of accuracy and data keeping, there are more than enough instances of wrong invoicing. As much as 3% of your billing cost may fluctuate due to these invoicing mistakes. The only way to avoid this malpractice is to keep a constant vigil on each and every invoice received.
The above strategies are simple but efficient enough to bring changes in the shipping costs of e-commerce. No retail business can grow in profits unless they look into their shipping costs and become dynamic in handling it. Therefore, spending energy on shipping costs is bound to have a positive effect on the profits for your enterprise.