E-Commerce : 7 Tips to Save When Shipping Small Packages

Shipping Small Packages 

E-Commerce business continues to rise in sales. If you are looking for a cost reduction in your business expense, your small package shipping fees can be your answer. Knowing these seven tips can help you save money on your next UPS or FedEx invoice.

Tip #1 Stay Informed 

Always keep informed about your pricing and carrier increases. Understanding your pricing agreement that is in place is helpful especially if your shipping practices change. It might be beneficial to renegotiate your rates if you notice that the areas you are shipping have higher rates than what is in your agreement. Keep an eye out on upcoming GRI’s (General Rate Increase) as it may have a huge impact on your pricing. Sign up for your carrier news through UPS or FedEx website to receive updates about GRI’s and other changes that affect pricing. (Upcoming: UPS GRI effective 12/26/2016) 

Tip #2 Packaging 

Small package shipping cost bases on package weight or dimensional weight. The greater weight of the two applies to rate calculation. If your dimensional weight is higher than your package weight, then focus on lowering the density of your package to save money. This rule excludes letter rates. To learn more about billable weight calculation information visit UPS or FedEx website.

Tip #3 Guarantee or It is Free

Timing is everything. When a package is late, who hears about it? If you guessed the shipper, then you are right. FedEx and UPS want your business and trust. That is why they have a Money-Back-Guarantee policy on ALL small packages, no matter the service level. Meaning if a package delivers 60 seconds late based on your shipment’s destination it is FREE!

Example: 

UPS: You ship a package using UPS Next Day, and the service is Next Day Air Early. According to UPS U.S. Shipping Services, your package should arrive by 8:30 AM. If your package reached the destination and signed at 8:31 AM.  The package is a minute late.

FedEx: You ship a package using FedEx Next Day, and the service is Priority Overnight. According to FedEx U.S. Shipping Services, your package should have arrived by 10:30 AM. If your delivery reached the destination and signed at 10:31 AM. The package is a minute late.

In both examples, since the package is a minute late you can file a Late Delivery claim through  UPS or FedEx website and keep your money in your wallet.

Tip #4 Voids 

A Void is a shipping label created that did not ship. If you are using UPS, you must know once a label generates a bill is on it’s way to you. If the package did not ship then, file a Void claim. FedEx bills after delivery so your chances of being charged a Void are slim.

Tip #5 Residential 

We have seen many times UPS and FedEx add a Residential fee on a shipment that was not delivering to a Residence. If Residential applies, you can expect the gross charge to increase including an added accessorial fee. You can use Google Map to see the destination and if it checks out to be Commercial then file a claim.

Tip #6 Duplicates

A duplicate billing occurred when an accessorial did not bill at the time of the original bill. UPS bills when a label generates. If an accessorial was not applied and one is needed, you may receive another invoice with the accessorial fee. FedEx will charge when the shipment has delivered. Therefore, they will have all the information in-hand and are less likely to double bill.  If you are to catch a tracking number charged on two difference invoices, then you may have identified a duplicate. If you have already paid your bills, file a claim.

Tip #7 Third Party Billing

Vendors will typically use their client’s account number when shipping. Which means you have someone typing a pickup order and manually entering the account number human error is bound to happen. If one digit of the account number is off then oops! Someone else’s account gets billed. If you notice a shipment that does not belong on your billing, then this may have happened to you, and you can file a claim.

Finding savings can be somewhat cumbersome to those who spend a $1,000 or more on small package shipping a week. With Technology on our side, Broussard Logistics has the software to identify savings in a few minutes and files claims on your behalf creating savings much easier to gain and more time to focus on other areas of your business.