- 5 Ways To Save Money On Shipping Materials And Costs Per
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Everyone wants to save money on shipping. No great secret there. At FreightPros, we're committed to helping our customers, and their customers (and really anyone that's interested in shipping) save time and money on their logistics.
To that end, we've compiled a list of 25 Genius Tips for Saving Money on Your Shipping. We've categorized them for easy digestion between the General Freight Industry, Less-Than-Truckload (LTL), and Full Truckload, but you'll find that most of our tips can be used in any form of shipping. So buckle up, call the kids in for dinner, and prepare to save some serious cash next time you ship.
1. Know Your Industry
- Amazon Prime clients pay more for a similar thing. For one thing, any individual who has Amazon Prime and acknowledges paying more for a thing is a sham. Amazon touts that you get “free 2-day shipping on Amazon Prime”. This basically is valid, yet they do raise the cost of the thing itself to balance that “free” surge shipping.
- Shipping will continue to be a significant business cost so long as the Internet continues to enable aspiring entrepreneurs around the world through platforms such as Amazon, eBay and Etsy.
The world of shipping is big and bad, and you've got to know your enemy. Whether it's LTL, truckload, or parcel, you've got to know the details of your industry before you can master it. Download our Beginner's Guide to Freight Shipping to get started.
Many also increase costs as the weight of your goods increases. Conditional shipping deals rarely are beneficial for the end customer or the ecommerce merchant. If your website sales are high, the flat-rate strategy could be the way to go. Save money on packaging. Most top shipping service providers offer packaging equipment such as wrapping.
2. Reuse Your Packing Materials
It's easy to save and reuse bubble wrap, packing peanuts, air pillows, and any other sort of packing materials you might get in your next online retail purchase. Anything you save and reuse is something you don't have to buy. Props to Alan Henry over at Lifehacker for the tip.
3. Don't Spend Money on Cardboard Boxes
With a little effort and ingenuity, you can find these bad boys all sorts of places. Hit up liquor stores, grocery stores, and places like Starbucks to help save the environment and cut costs. Brand new cardboard boxes are expensive, and used ones usually work just as well.
4. Make Sure Your Freight is Ready Before Scheduling a Pickup
Shipping is not like calling a cab or Uber. You can't get your freight ready to ship while the driver is on his way. Make sure your freight is ready to go, or else you might end up with a dry run fee, and that can cost you cash.
5. Know the Difference Between 'Value' and 'Price'
The lowest price is not always the best value. Sometimes, paying more up front can avoid additional costs later on. By using a freight broker, you might pay a higher initial cost, but often times they are an excellent investment further down the line of your shipment, or if/when something goes wrong.
6. Pay Attention to Your Invoices
Don't assume your freight charges are always correct. Always review your invoices, and don't be afraid to take your questions and concerns to your broker or carrier. Big thanks to Jose Li, and the Fundbox blog for the tip!
7. Don't Always Trust Freight Calculators
LTL shipping quotes are about more than weight and shipping locations. Online freight calculators can give you a false idea about your freight quote, and that can cost you money in the long run.
8. Know the Lingo
Don't get confused by weird acronyms or definitions in the freight industry. The pages of a shipping dictionary are numerous, and can feel never ending. Get to know your freight terms, and you'll be able to put them to good use to streamline your freight experiences.
9. Inspect Your Shipment at Delivery
Make sure to notate any damage on your delivery receipt. Even if it seems like a little thing, a scratch here or there, mark it on the POD (Proof of Delivery). Without notated damage, you won't be able to file a freight claim for any damage/loss, and this will cost you money.
10. Cut Down on 'Stated' Shipping Costs
Nobody likes paying a ton for shipping (obviously). Adjust your prices to include some of those costs, and your customers will be more likely to buy. Shoutout to Cameron McCool at Bench for the tip.
11. Shop Around on Volume Quotes
Not all volume quotes are created equal. Some freight companies specialize in large markets, small markets, or particular geographic locations. Start your quote search early, and try to find your best deal.
12. Lighten Up
Weight is a major component of pricing in shipping, so avoid heavy packing materials. Go with packing peanuts instead of wool blankets. Anything you can do to cut down on the total weight of your shipment is going to help you get a cheaper freight quote.
13. Know Your Freight Class
Another major factor in the price of a quote is the freight class. Getting the right one is key, or you may end up with a reclass. Given that freight class can be so confusing, it's important to get a handle on it early. Reclasses are a pain in the butt, and cost you money on your shipping.
14. Cut Out Delivery Appointments
It can be tough, but carve out an afternoon to hang out at the house. By giving the freight carrier a large window to deliver your shipment, you can avoid paying extra for a delivery appointment.
15. Get Third Party Insurance
It might cost a little more up front, but if you're shipping expensive or fragile items it will make all the difference if something gets lost or damaged during transit. Most carriers have their own freight insurance, but it rarely covers the full cost of a damaged shipment. Getting third party insurance gives you peace of mind, and makes filing a freight claim much easier.
16. Consolidate Your Shipment
Packaging items together can significantly cut down on shipping and packaging costs. By consolidating your shipment you can cut weight, density, and a chance of damage or loss. It's easier to keep track of one piece of freight than it is to keep track of five or ten (especially if they're small boxes).
17. Pick Up Your Freight at the Terminal
To avoid additional shipping fees like liftgates and residential deliveries, you can always go pick your shipment up from the delivering freight terminal. All you have to do is call the carrier and let them know you're on their way.
18. Determine if Your Shipment is LTL or Parcel
If your shipment is small enough, you can save money using small package or parcel shipping instead of LTL. Parcel shipping is a totally different animal than LTL, so it's important to recognize the difference between the two. Thanks to Steve Chou over at My Wife Quit Her Job for the shipping info.
19. Use a Density Calculator
With more and more freight classes being dependent on density, using a density calculator can help you avoid costly reclasses. Knowing your shipment's density can help in all sorts of ways, and contrary to a freight calculator, you can rely on a density calculator to give you the information you need.
20. Hire a Professional
Freight brokers can get you better shipping quotes, not to mention they can help out with claims, damage, tracking, and so much more. A freight broker is not the same as a freight carrier, and a professional freight broker is key no matter how often you're shipping LTL or (especially) full truckload freight.
21. Ship Early to Avoid the Holiday Crunch
Avoid delays and expedited costs by shipping at least a week early around the holidays. Both LTL and truckload slow down as drivers and carriers take take off work for the holidays. Don't wait to send your stuff. Thanks to Taryn Williford at Apartment Therapy for the tip!
22. Know How Much Room You Need
Always know how many square feet of truck space you'll need. There is always the chance of 'Partialling' a shipment to save money, but if you don't know exactly how much space your freight will take up then that won't be an option. If you're using standard pallets (you should be), know your count and if they're stackable.
23. Don't Forget About Intermodal
If your freight is not time sensitive you can save some serious dough by utilizing the rail and shipping your stuff intermodal. You'll need a broker to help you out with the intermodal process, but by using the rail you can get cheaper freight quotes for your full truckload shipments.
24. Track Carrier Performance
Just like volume quotes, not all freight carriers are created equal. Try different carriers and track their performance to make sure you're using the right carrier for your freight. Once you find one that you like and that treats you right, stick with them. Having great relationships with owners and operators can get you out of a shipping bind in the future.
25. Take Advantage of Backhauls
When you're shipping truckload, getting a carrier on a backhaul can save you serious cash. Once again, you'll need a broker with knowledge of the trucking markets to get you the best deal on backhauls. Some times of the year are better than others, so ask your broker if backhaul could work for you.
Technology has brought about several improvements in the business world. It is a concept that has brought great automated solutions. The benefits of technology in business cannot be overemphasized. It increases productivity, speed, ease of sharing and storing information, reduces human error through automation etc.
All these benefits lead to lower cost structure and an increase in revenue for businesses. Fortunately, there are several technological concepts you can implement in your business to reduce cost. Some of them are enumerated below:
- Cloud computing
Cloud computing is the storing and accessing data and programs over the internet, instead of your computer’s hard drive. Cloud computing is a very efficient way to lower business cost.
Cloud computer reduces staffing cost. The staffing cost in an organization is usually the highest. This is because IT personnel are expensive. With cloud computing, there is less demand for IT personnel. If the servers and other hardware of the provider need upgrades or repairs, it is their sole responsibility to do it. This removes the cost of repairing or upgrading your servers and hardware.
There is a reduction in hardware cost in using cloud computing. Instead of purchasing your own equipment, which can be very expensive, the provider takes care of that. Cloud computing removes the issue of hardware cost, helping your business grow quickly and easily.
Cloud computing works on a pay-as-you-go pricing model. This saves your company from paying for software that is not used. You can choose to cancel your subscription anytime you want, which lessens the financial risk of software that does not work or fit your business needs.
Examples of cloud computing providers include Google Drive, Apple Icloud, Amazon Cloud drive, Box, Dropbox etc.
- Customer relationship management software
Customer relationship management software (CRM) is software that has different applications to help businesses manage clients and contacts, customer data, marketing, contracts, sales, employees, knowledge and training, business information, etc.
It is generally used to manage a business-customer relationship and it can be used by a business of any size.
So, how does it save cost for your business?
CRM software can help your business eliminate misplaced invoices. When you use a CRM system, it will help your business by showing all lost invoices that need to be chased. You will not have any outstanding invoices anymore. This means more money for your business.
It will also help you to do away with many unwanted software programs. This will save you money on different software licenses. Some businesses pay huge sums of money every year to keep up their licenses for various software programs. However, using CRM software that has web based project management features means you will only have to pay for a license in a year. This is a very good way to save money for your business.
Good and efficient CRM software includes Infusionsoft, Oncontact CRM, Salesforce work, Maximizer CRM, etc
- Business to business integration
5 Ways To Save Money On Shipping Materials And Costs Per
Business to business integration is not a new technological concept. It has been in existence since the 1960’s. It is the integration, automation, and optimization of key business processes that go beyond the four walls of a company.
A good example of this concept is receiving orders from your customers electronically instead of through the mails. It makes it easy for the company to process order information quickly and with accuracy. B2b integrations also connects external suppliers electronically which makes it easy to view global shipments, automate the warehouse or distribution centers, and optimize stock control.
5 Ways To Save Money On Shipping Materials And Costs Estimate
B2b integrations can reduce overhead costs and eliminates human handling, such as sorting and circulation of mails, clerical document preparation, and data entry. When you implement b2b integration, it reduces the cost you spend on paper, envelopes, mailing materials, telephone, and courier services to distribute paper documents.
There are several business to business integrations solutions on the internet. However, you need to ensure that the solution you choose has electronic data exchange, business process management, business activity monitoring, and global partner enablement and management features.
- Teleconferencing
5 Ways To Save Money On Shipping Materials And Costs Incurred
Teleconferencing is a communication tool used among many participants in different locations. It is a strategy that is common among businesses with multiple locations and dispersed employees.
There are different types of teleconferencing such as business television conferencing, audio conferencing (conference calling) via telephone lines, audiographic conferencing (desktop computer conferencing) and computer conferencing via telephone lines to connect two or more computers and modems.
The process involves using a telecommunication channel, linking people at different locations, providing two-way communications and allowing users participation.
Teleconferencing increases efficiency and helps to manage business costs. Instead of traveling to different locations for meetings, you can easily use it to communicate to your employees across the world at the same time, without having to leave the office.
With teleconferencing, all you need is to move information and not people. This helps to save costs for travel, meals, and lodging. The employees will still be in their offices and this will speed up product development cycles, improve performance through frequent meetings with timely information.
The good news is that you don’t even have to spend a lot of money to acquire a teleconferencing tool. You can start with free options available on the internet, such as GoogleHangouts, Bigbluebutton, MeetingBurner, Mikogo, Webhuddle etc.
- Webinar
Webinar is a short word for web-based seminar. It is a live web-based video conference that connects the host with viewers all over the world via the internet. A webinar can last for an hour or two, just like mini-courses. Anyone connected to the webinar can ask questions and make comments. It is a great way to convert your audience to customers.
Webinars have an incredible conversion rate. According to Adobe, they claim 19% conversion rate in their seminars. While Buzzsumo says that 20% of webinar attendees turn into paid customers. Webinars have a higher value over all other content types on the internet.
Therefore, it has the capability to attract more audience and customers to your business. With webinars, you can connect with a wider audience and raise awareness for your product and services. Instead of you organizing a physical event, paying for a venue and the logistics that goes with it, a webinar can take place right there in your office with the right tools at your disposal.
There are different types of webinars tools like Gotowebinar, Anymeeting, Zoom, Google hangouts, Skype etc.
5 Ways To Save Money On Shipping Materials And Costs Calculator
If you are thinking of ways to save cost for your business, use Cloud computing instead of servers and other equipment in your office. Customer relationship management software will help to do away with unwanted software programs. Business to business integration reduces overhead costs. Teleconferencing helps to manage business costs and Webinar helps to attract potential customers without spending much money. Now, you can choose from any of the above technology and start reducing costs for your business.