Shipping is an essential component of your business. It grows more complicated when you start to ship abroad. International shipping costs are high and can suck your profits dry.
It’s easier than you think to reduce the cost of international shipping. In this article, we provide you with a number of easy ways to reduce your international shipping costs.
1. Work with Your Carrier
Most carriers have a small business department where they will work directly with you to reduce your fees. They’ll give you their best deals based on your needs as a retailer.
For example, they will help you to compare the differences in air and surface mail. This is an entirely free service offered to customers.
On average, businesses that don’t decide to work with their carriers can expect to pay up to 40% more in fees.
2. Let Your Customers Know
Businesses occasionally fail to clarify their shipping policies for customers. There are situations where the business pays and the situation where the customer pays.
A common scenario is where the customer pays for a premium service and assumes the company will pay. The business now has two options:
1. Tell the customer it’s their duty to pay and risk having them cancel the order.
2. Pay the shipping cost this one time and take the loss.
Neither option is particularly advantageous. Don’t run into this situation in the first place by letting your customers know how it works. Make it clear. Avoid hiding it amongst the small print.
3. The Weight of the Product
Businesses might find themselves estimating how much they need to pay for shipping. This can lead to both overcharging and undercharging.
Make a point of equipping your business with its own set of scales. Measure your products and get the exact shipping costs for it. This way you’ll always get the best price for your shipping.
Shipping costs tend to increase quite linearly. It’s mainly influenced by weight, so you don’t need to weigh every single combination of items to come up with an accurate shipping figure.
4. Freight Consolidation Service
You might not be able to find freight consolidation services with carriers like IDT, but it’s worth searching for one.
A freight consolidation service is where a truckload of items is comprised of products from multiple companies. It’s handy if you aren’t running a particularly large operation and you want to get the most value for money.
Freight consolidation services tend to offer larger discounts than sticking with conventional shipping options.
5. Get What You Pay For
Measure the performance of your carrier. Never assume that they can always deliver on their promises. This only leads you open to being scammed.
Make sure you get what you pay for. If you ordered an expedited delivery, check to make sure the package arrived. Maintain a scorecard and be willing to swap carriers if they perform poorly.
This is a matter of getting what you paid for. If you are paying for services that aren’t being delivered upon, you’re throwing money away.
We recommend scoring using the following criteria:
· The level of customer service.
· Ability to deliver packages on-time.
· Packages delivered in pristine condition.
· The price you pay.
Prioritize the points however way you see fit. Every business has different needs and will consider certain pieces of criteria more important.
Overall, getting the best price for your shipping doesn’t need to be difficult. All it requires is the willingness to monitor your carrier.
You can really save a significant amount of money by paying attention. It’s not just about getting the best price for you. It’s about getting the ideal figure for your customers.