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Top 5 Tips to Effectively Save Money on Shipping
calculating shipping costs

Sometimes leading supply chain operations seems costly. Being confused by financial challenges, retailers often can’t identify the right spots to cut costs. However, shortening the shipping expenses is possible and can let you invest in something relevant to your business development.

Affordability of logistics operations

Reduction of shipping costs has always been one of the primary concerns of retail businesses. Often, the shippers try to cut as many expenses as possible, thus lowering their supply chain standards and resulting in late deliveries, freight damage, and decreased customer satisfaction. It’s vital to manage your logistics budget so that it doesn’t impact transit operations and find a balance between shipping quality and affordability.

Well-known logistics strategies allow shippers to plan their budgets better and forecast their future expenses. By reviewing your supply chain organization, you can find many opportunities for improvement and streamlining your payment procedures. Later, you can consider applying so,e technological advances that are a great help when it comes to expense analysis and regulation. 

How to save money on shipping?

Retail businesses are constantly looking for ways to make shipping more cost-effective yet maintain high-quality performance. Many business owners believe that shipping expenses are unchangeable, but that is not the case. There are several workable ways to reduce the shipping costs you should know about to ensure you can manage your financial resources properly.

Know your shipment

You need to be precise when calculating the weight and size of your shipment. The wrong estimation of these characteristics can cause you to pay additional fees and increase your shipment's final pricing. Try to note all the freight measurements as accurately as possible to facilitate the work of your carrier partner and avoid using extra services. Besides, knowing your cargo will help you understand your shipping requirements better, including the suitable packaging method and type of trailer that fits your items.

Determine the net cost

Many factors determine the net cost of your shipment, including cargo features, weight, height, shipping distance, delivery time, and accessorial service options. It’s crucial to know the freight value to get appropriate insurance and prevent yourself from financial losses in case of cargo damage or loss. 

Accessorial fees vary depending on the selected carrier. Knowing all the involved additional charges is essential when choosing a shipping service. For example, carriers may charge some money for handling fragile or hazardous goods. Besides, large-item shipping typically embraces loading, unloading, and fixating operations to meet all the requirements of oversized transportation. 

Choose the correct freight class

Identifying the correct freight class is vital to saving on your shipment. The higher your freight class is, the more you’ll pay for transit operations. So, it would help if you classified the freight correctly to get an accurate shipping quote and avoid reclassifying your cargo by the shipper. At times, freight classes are negotiable with carriers, making it possible to reduce shipping costs. 

The freight class influences your packaging choices, paperwork processes, and transport demands. When working on the cargo measurements, count the density, stackability, handling, and liability, that contribute to the pricing of your shipment.

Use proper packaging

Proper packaging is the most effective way of preventing transportation damage. Attaching freight to a pallet or using the wrapping method can stop your items from unwanted movement and shifting inside the truck. If you are shipping glass or delicate material, you need to ensure enough cushions inside the package to prevent damage during the shipping process. The orders arriving in perfect condition guarantee your company profits.

Add labels to your load that is visible and easy to read outside the packaging. It can reduce the necessity to open the boxes several times during transportation so that your goods are less likely to get damaged. Besides, it can allow you to reuse specific packages and save money on them. 

Consider consolidating your freight

Often, it’s easier to save money if the shipper consolidates smaller orders into one shipment. Typically, you can ship smaller consolidated shipments via less than truckload (LTL) mode instead of booking a full truckload. Thus you’ll share the transport unit with other business owners and only pay for the used trailer space. 

In addition, there's an opportunity of applying for retail consolidation programs that have proved their direction towards cost-effectiveness. As a member of a consolidation program, you’ll move your LTL shipment in one lane with other LTL shipments combined to use less transport. Besides saving your finances, you’ll also ensure the timely delivery of your products.

Reduced shipping cost is one of the most significant advantages of GoShip transportation service. Here, you can meet many experienced carriers, compare their rates in real-time and get a free quote in a few clicks.