For any business owner trying to sell their products overseas, saving money on shipping costs can be a breather. While it may seem like going for cheaper shipping services isn’t a good idea, there are several methods that can help any company in reducing their shipping expenses while increasing margins and enhancing customer satisfaction at the same time.
In case your shipping costs is giving a negative toll to your profit, here are some of the best ways of saving money on freight shipping:
Tip #1: Select the Most Suitable Mode of Transportation
To be an efficient importer/exporter, it is your duty to understand and assess which of the most common mode of transportations is the best one for you.
Here is a list of transportation models that are highly available today:
- Air Shipment
- Rail Shipment
- Ocean Vessel
- Over-the-Road Trucking
Knowing how to weigh your options in terms of choosing the mode of transportation can make it easier for you to select a specific carrier company to entrust your products.
Tip #2: Research a List of Carrier Companies and Compare their Rates
Expanding your choices of carrier companies enables you to periodically check whether you’re already using the least costly carrier service available or not. Try asking each carrier for a freight quote and invest in a reliable TMS software to automate this method.
Tip #3: Be Practical with Your Packaging Materials
If you’re running a retail store, reusing the packaging materials you received (like packing peanuts, air pillows, bubble wrap, etc.) from your suppliers is much more economical. You should also pay attention to the weight of your shipment. Make sure that you will prefer lighter packaging materials over the heavier ones. For example, it’s better to use packing peanuts instead of wool blankets.
Tip #4: Consolidate Your Shipment
Avoid sending over multiple boxes to the carrier if it’s possible to pack them together to form a single cargo. Consolidating your shipment can restrict its weight, density, and the odds of taking damage or loss.
Tip #5: Hire a Freight Forwarder
One of the most effective ways of minimizing your shipping expenses is by seeking the help of a freight forwarding agency. Having a reliable freight forwarder can be an advantage as they are well-connected with multiple carrier companies which enables them to negotiate the best rate for transporting your products. Moreover, freight forwarders can also provide you with knowledge about logistics in ways that could benefit your business.
Apply these five tips in your shipping operations to ensure that you will be able to conserve your resources and ultimately increase your profit!
Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.