Lowering the shipping costs
Following are few ways in which we can reduce our overall shipping costs and make them count towards our profitability or price reductions:
1) Ask for discounts. If you are shipping packages via FedEx, UPS, or DHL, work with your account representative to ensure that you are getting the best discount program possible. Just about all shippers, regardless of size, are eligible for some level of shipping discounts, but you’ll need to ask in order to receive a specialized pricing program.
2) Consider alternative shipping options. If cost is a bigger factor than delivery time for your shipments, it is not necessary to go by the fastest option. Look for alternate price effective ways. Look for either low cost alternatives with same shipper or consider a different mode of shipment altogether.
3) Use hundredweight pricing when appropriate. Shipments of multiple packages to a single location may be eligible for hundredweight (also known as multiweight) pricing. Under hundredweight pricing, multiple packages being shipped to the same destination are rated as a shipment at a rate per unit weight (instead of per package, unless the per package rate is cheaper).
4) Manage your surcharges. Surcharges can significantly increase your shipping costs, and it is up to you to monitor them. Note that certain surcharges are higher for residential packages and are incurred in addition to the standard residential and fuel surcharges. Address correction charges can be especially costly, so it is essential to ensure on the front end that addresses are correct. Pickup fees, also add up quickly and should be avoided whenever possible.
5) Use one provider for all shipments. The provider often offer increased incentives based on shipping revenue or volume. Known as threshold or earned discounts (different companies use different terminology), these incentives are in addition to base discounts and reward customers for meeting certain shipping levels.