When we are running an online retail
business, the one important thing we care so much about is customer
satisfaction. We want to see them happy, no matter what. Customer is
the King, and we want to do whatever it is to make sure that the King
is happy. But what about us? The soldiers. Who guard the kingdom.
Between the customer checking out and
the item being shipped several parameters come into perspective. Most
often, we tend to overlook them, for the simple fact being, we want
to deliver as fast as we can in the best possible manner. The real
background concern is whether are we making sure we are covered for
our expenses.
1) Careless International Shipping:
International shipping involves planning and preparation. MotoSport,
e-retailer for motorcycle parts and accessories couldn’t agree more.
When MotoSport made its first international shipping, an order of $99
to Canada, they were in a rude surprise. Ryan Underwood wrote, “It
seemed like a no-brainer to fill it. But after the delivery truck
arrived at the customer’s house, the driver immediately demanded $100
worth of unpaid Canadian taxes and tariffs. As we might have
expected, the order was refused by the customer. If only MotoSport
had done some research and found out about the high taxes in Canada,
it could have stayed away from that untoward experience at the
customer’s address.
2) Careless analysis of shipment data:
Never negotiate terms without due preparations. It is not surprising
to know that the carrier knows more about the shipper’s distribution
than the shipper would. It is imperative to know service usage,
accessory charges, and other surcharges.
3) Neglecting USPS:
USPS is excellent
for ground deliveries. A carefully assessed mix and match with USPS
in the arsenal can save a lot of money.
4) Denial of Dimensional weight
pricing:
It is happening as we speak. FedEx and UPS have taken the
call. Where are we? Are we working our packages to the best possible
dimensions?
5) Haphazard estimates:
Last minute
shipments cost more than regular shipments. Estimating the shipping
costs in every aspect is not to be overlooked.
6) Not paying heed to automation:
Every
year, major carrier companies are investing billions of dollars in
upgrading their technology to make things easier and more efficient.
We need to look into the possibilities in the shipping automation
processes.
7) Lack of formal tools for
procurement:
A carefully scripted RFP (Request for Proposal) will be
be able to bring in a lot of savings on the shipping front.
8) Not involve senior management:
When
negotiating shipping terms, payment and insurance, it is usually the
representatives of carrier companies who make the deal. Involving
senior management can increase the value of negotiations for us.
9) Choose morning over afternoon:
Choosing a next-afternoon service over next-morning service will
enable significant savings.
10) Not utilising one-rate shipping:
Many businesses are unaware of flat rate or one rate shipping from
UPS and FedEx. A fixed rate shipping is great when there are multiple
items to be added in a box.
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