How to Cut Vehicle Shipping Costs for Businessesby Jordan McDowell Content Strategist
For retailers and manufacturers, saving on shipping can go a long way towards adding profits, especially if they offer free shipping. From leveraging technology to the consolidation of packages, here are effective ways of cutting vehicle shipping for businesses.
Obtain Packaging Material From Your Carrier
There are shipping regulations that could see you incur extra charges should your boxes exceed a certain weight and/or size. Having been in operation for years, your carrier most likely produces or sources packaging material that goes around these dimensional constraints. Such packaging is precise and will save you considerable money on dimensional charges.
Leverage Available Technology
Technology has evolved, and more than ever before, enterprises can use it to save on shipping and stay safe in the wake of the pandemic. One of the areas that technology has streamlined is reducing order returns. Consumers receiving the wrong orders is the number one cause for returns, but with technology such as bar code scanning, and image-oriented verification, you can considerably promote shipping accuracy.
Other technologies like packaging software will allow employees to compare actual weights to expected weights actively. Besides, with technology, you will be better positioned to identify a potentially good carrier, ship more with fewer resources, and collect real-time data that you can analyze and use the information to streamline operations.
Consider consolidating your package contents into one heavier box instead of multiple separate boxes. This means that instead of shipping four 5-pound boxes, you can consolidate them into one 20-pound box and see a relative lowering of cost. Of course, this makes more sense when dealing with bulk-order customers like a busy garage in constant need of similar spare parts. Also, cargo consolidation sets a base for more convenient discounting, which sets a base for loyalty and more customers.
Consider Prepaid Shipping
This tip is perfect for enterprises that have already established a loyal customer base, and they can project when and the amount most customers will need at a given time. If you can approximate your shipping costs over a longer period, the more you’d be able to save on prepaid shipping.
Cut on the Package Weights
This is one of the most effective ways of cutting shipping costs. While you most certainly cannot cut the actual products' weight and size, you can use these hacks when it comes to packaging.
Using bags instead of boxes when you can, and if shipping to longer distances.
Finding the optimal cardboard thickness that balances safety and lighter weight
Obtaining boxes for all kinds of products so as to reduce the infill required.
Considering using air-filled infills where applicable
The same goes for DIM weight, which your carrier uses to factor in package size. Particularly, this goes for fragile products like glass and relatively lightweight products that are big in size. You will find that a product that would have cost $15 to ship now costs $17 because of the DIM factor, but you can find a way around this by boxing optimally and reducing infill, as long as you don’t risk breakage.
Remember that as much as you want to cut on the weight, you cannot afford to compromise the safety and aesthetic value of the packages.
Warehouses and Fulfilment Centers
One of the reasons why shipping costs hike is because of the distance companies have to ship. A great way to go around this is to build warehouses in different locations, carefully selecting sites, and factoring in the number of resources that you will be injecting into the management of these spaces. Warehouses are perfect if you deal with long-life goods such as car spare parts.
Even better, fulfillment centers go a long way towards reducing shipping costs and time. They work great for eCommerce businesses that receive orders online. Your carrier conveniently gets orders from these centers and delivers to your clients without much engagement from the main business premises. Besides saving money, a customer is more likely to remain loyal if their deliveries arrive fast.
Saving on freight is something every eCommerce business should optimize as it maximizes long-term profits. The above tips for saving on shipping costs are proven and will work great for your business. Remember that despite their workability, a good delivery system starts with finding the perfect carrier service for your business and establishing a mutually beneficial, long-term relationship.
Created on Aug 12th 2021 20:01. Viewed 107 times.