Demand in the e-commerce industry grew during the pandemic, and carriers needed to keep up. The more experienced carriers were already reviewing their rates periodically, but this is now a widespread practice.
It is good to be aware of this, as the profitability of any business depends on shipping costs. Reducing the price of shipping allows you to make greater profits and make massive investments in your company. Do you know where to start?
So, here are 6 ways to reduce your shipping costs.
1. Demand research
It’s a poor habit to stick with the first carrier that comes along. Because the majority of carriers adjust their charges based on the volume of cargo, you must know which one best meets your needs.
Rather than calling local carriers and researching global providers, use an operating system that delivers an accurate ranking of all available carriers.
The dimensions of the packaging should be kept as compact as feasible. Many businesses charge a premium based on the size of the box. If it is a light commodity, avoid using bulk packaging. The details can save you a lot of money.
3. Have full visibility
Two key benefits come from carefully observing and interpreting the data from your travels. First, you can more confidently guarantee the origin and quality of your product to your customers. Second, you can devise effective ways for lowering your cost per mile.
Transparency in your supply chain not only draws new customer categories but also increases loyalty among existing customers. The image of the organization is equally as crucial as its efficiency.
4. Have reliable forecasts about the demand
With the supply chain in a state of disarray as a result of the epidemic, having reliable projections allows you to make the right decisions. Similarly, understanding the likelihood of a port shutdown based on Covid cases will keep you from delaying ships.
To get accurate estimates, you’ll need the Grydd operating system, which combines your whole supply chain and includes a wealth of data.
5. Be Accurate with Billing
Knowing what you are paying for is just as important as ensuring your customers of the quality of your product. Have precise pricing data for each route, as well as how much profit they generate for you.
6. Become a Grydd partner
Don’t waste any more time! Schedule a (FREE) conversation with our supply chain and logistics experts and get a demo.