Cut Shipping Expenses
Stores spend an average of 1.5 percent of total sales on shipping. With rates increasing every year, ways to cut shipping expenses are much needed. Here are a couple of tips.
1) Consider your mode and service level choice. Ground carriers charge less than air carriers but often deliver just as quickly. Also, decide how fast your package really needs to arrive, and don’t pay for next day delivery if it’s not necessary.
2) Negotiate with your carrier. If you send eight or more packages a week, you have bargaining power. Tell your carrier that you’re shopping around, and haggle with them to get a better deal.
3) Consolidate your shipments. Don’t send each package separately if they’re going to the same place. Shipping packages together could save you hundreds of dollars.
4) Outsource your shipping to a specialty firm. Firms ship in large volumes and receive a high discount, which they can pass on to you.
5) Prevent mistakes. Keep track of your invoices, and make sure you’re not being overcharged. Double check addresses before you ship so that packages don’t get returned. Wrap each item in at least two inches of filler material to prevent damage to the package contents.
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