Shipping Costs | 5 Ways You’re Wasting Money

It’s no secret—shipping is complicated. Really complicated. So complicated that ShipCaddie was created just to make it less complicated (and to reduce your shipping costs, of course). With so many moving pieces, it’s easy to lose track of cost drivers and end up spending too much. Here are five ways you may be wasting money on shipping:

#1 – Your box is too big

Does your company focus on giving customers a premier unboxing experience? If so, you might be going overboard with your box dimensions. UPS and FedEx dimensional rules assign every cubic inch of package size a weight—regardless of true weight—significantly multiplying your costs. Instead of placing a small item in a large box with spacers or padding, you should find another way to give customers an exciting unboxing experience without adding several pounds of DIM weight to each shipment.

#2 – You’re shipping from the wrong location

Picture a map of the United States. Drop a pin on your shipping site (your “from” address), then draw a circle around your market (your “to” addresses). How close are they? If you ship surfing gear from New Jersey to customers primarily in California, you have a problem. Why not find a solution on the West Coast that will cut distribution costs in half? You could even consider strategic alignment with a regional carrier to ship faster for less, if that fits your needs.

#3 – You’re not asking for refunds

FedEx and UPS guarantee that your shipment will arrive by a specified time. If it gets dropped off even one minute late, you are entitled to a refund. Are you taking advantage of these guarantees? If not, you should dig into your FedEx/UPS accounts to see where the your refunds could be hiding. There shouldn’t be a lot, but every penny counts—especially for smaller e-retailers. With a closer look at your shipping trends, you might even find even more ways to streamline your shipping and reduce shipping costs.

#4 – You’re still paying for boxesFree USPS boxes for Priority Mail

Why pay for boxes when you can get them for free? Most USPS Priority Mail boxes and envelopes are complementary, plus they give you $50-worth of insurance and free pick-up from your home or office. Additionally, they don’t apply any of the standard surcharges used by the other carriers. If your shipping needs align with USPS, you could be getting a lot of cost-saving perks.

#5 – You’re using air services when you should be using ground

Because of the “Amazon Effect,” many consumers now expect 2-day shipping—often for free—which usually means air/express services. But is air transport the only way to meet this consumer expectation? Ground transportation services can also get your package to its destination in 2-days (and at a lower cost), depending on the carrier and to/from zip codes. For help determining which services best fit your characteristics, try a parcel audit software (click here to Google).


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