5 Common Causes of High Shipping Expenses
As a business owner, and especially if you happen to be a small business owner, you need to try and save on expenses and cut costs whenever possible. If your business happens to do lots of shipping, whether locally or overseas, you will definitely need to look around for a good courier and shipping service but at the same time, consider the costs involved.
Naturally, you would want to save so that it does not eat away at profits, because it does have a direct impact of your product’s selling price. You need to know what factors play a part in influencing shipping costs, so let’s take a look at what these are.
1. The Delivery Address
One common factor that affects courier rates is the delivery address. Whenever a delivery address is in the same city as the location where a package was picked up, then you can expect to pay a more affordable price. If the courier also happens to be and work in this particular area, this is even better. Sometimes a courier will work outside of their particular area, in which case, they will charge a fee for this. When looking around for a courier, you could save yourself some cash if you used a courier who works in both the pickup area and delivery area.
Sometimes, depending on the courier service, the cost may also depend on whether the delivery address is a residential address or a business. Some couriers will charge more to deliver to a residential address because it may be a little more out of the way of their normal business delivery routes.
2. Distance Travelled
Another factor affecting the cost is the number of miles travelled, or the distance between the locations. For each mile travelled, there is wear and tear of the vehicle to consider as well as fuel expenses. Just in case, you may want to map out the distance yourself. This way, you can check out the quickest route between the two points and see if the expenses you are being charged for makes sense, as a way of protecting yourself.
3. Time Needed For Delivery
The courier rate is also influenced by the delivery time. Traffic at the time of a scheduled pickup, construction delays and even weather conditions are all taken into consideration. In order to save some money, look at other courier services. What hourly rate charges do they offer? Compare a few courier services to see which is the best all round service provider for your company’s needs.
4. Weight & Dimensions
The costs of shipping packages will also depend on things like weight and dimensional weight. So, for example, a package weighing 10 pounds in a box that is 10x8x5 inches will not be the same as a package that weighs 10 pounds in a box that is 20x15x10 inches, despite weighing the same.
5. Type Of Service Chosen
The type of service you choose also makes a difference. If you chose Express Service rather than Ground Service, it will be more expensive. On the other hand, it is good to have options as it will allow you to use whichever service to keep your customers happy and satisfied.
Make sure to enter all information correctly and if possible, minimize the dimensions of your package so that you can keep charges lower and save some money.