We all look to bring our expenses down and have better margins! Shipping costs are one of among the first Business costs that should be optimized. A periodic audit of your shipping invoice should give you a fair idea of where to start optimization. Here is a checklist you should have ready

Do you recover shipping refunds?

A review of your invoices with FedEx and UPS can help you identify and recover costs. A good number of your packages are delivered later than the stipulated time. So, you are eligible for a refund in such cases. Invest in a late shipment tracking system to collect your refunds. It can help you immensely. If you want to start claiming refunds now, check out LateShipment.com.

Do you negotiate enough?

Like with every business, negotiate and try to find better prices with FedEx and UPS. You can obtain good discounts with shipping carriers based on your volumes, frequency and destination. If you ship in bulk to one destination very frequently, you need to mention that and try to get better rates for that.  Have accounts with FedEx and UPS. This is especially important because you can leverage one against the other when you negotiate rates. And you can also choose that time period’s better performer to carry your shipments.

Is your rating software up to date?

Rates are changed every now and then. So, when you run an audit, check if your shipping rate software with which you compare rates across vendors is right. It is, after all, impossible to go back to a customer and try to ask for incremental shipping charges.  With the advent of dimensional weight shipping prices, you need an accurate price at the click of your mouse button.

Are you choosing the right delivery for your shipments?

If the customer states that he wants a next day Delivery, do you jump to sign up for the fastest express delivery that the shipping partner offers? Think again. If the customer lives in the same state, a standard delivery is fast enough to take the product to the customer in a day’s time. Obviously, it is also the cheaper delivery mode and can help you cut down on shipping costs significantly.

Are you packaging your goods right?

The Dimensional weight pricing strategy can mean that you need to rework on your packaging techniques. The larger the box, the more you pay for shipping. So, try and condense box sizes. If you sell clothes, do you need boxes in the first place? Think again.

So, if your business deals with a volume of shipments, there’s always scope to optimize shipping costs. A detailed audit and analysis will help you cut down on overall shipping costs.