Sending a lot of shipments means that your business is doing well enough to be a part of the interconnected global marketplace, but it means that you will be spending a large chunk of your budget on costs. Shipping costs are a foregone conclusion, but that does not mean you have to pay top-tier rates all of the time! It’s possible to pay less for shipping, using a few tips and tricks to stay competitive and keep costs low.
Why Does Shipping Cost So Much?
First, let’s look at why shipping costs are high. There are a few key reasons and knowing these factors helps in determining where you can lower your costs.
Today’s consumers want their goods as quickly as possible. We are all used to express shipping as the norm, and many expect even same-day or next-day shipping at an affordable rate, which puts a lot of pressure on sellers.
Those expedited processes come with a higher price tag. Putting a shipment on a plane is going to get it there faster than sending it by shipping vessel, but the cost will rise dramatically at the same time. Add in urgent, expedited orders and you’re paying a serious premium.
There’s another factor in shipping that brings up the final cost, and that’s handling. Every time someone becomes involved in moving items, they need to be paid for their time and effort. The more complex shipping and handling is, the more it will cost.
Reducing Shipping Costs
Looking at the factors behind shipping costs, you can see where there is room to improve. If your organization can reduce the need for expedited long-haul shipping, reduce the complexity of the operation, and run as lean as possible, your items still get from origin to destination, but the overall cost is reduced.
How can you achieve this? Projection and planning ahead are key. Even if a customer needs something expedited quickly, it’s a lot easier to do that in a cost-effective way when the item is on hand versus having to scramble to get it moved from a supplier around the world. Projecting your needed shipments and planning ahead means you can use slower, economical shipping methods, and gives you the time you need to find the best prices possible.
If something needs to move quickly, taking the time to search for the best price from various carriers pays off. This, of course, can cut into the time you have for business operations, which is where a freight forwarder’s knowledge and network helps. Leveraging a freight forwarder means you’re able to access reputable, responsible carriers without spending tons of time or money finding the right one.
Whether you have time on your hands or you’re in a rush, a freight forwarder will help streamline shipping so you’re as agile and flexible as possible, moving your goods seamlessly and reducing handling costs.
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