One of the most complicated operations for many small businesses is shipping merchandise. Without proper planning, business owners can easily find themselves overpaying for deliveries or losing sales because of inconsistent shipping to customers.

It’s important to manage your shipping costs directly to keep them from affecting your business’ bottom line. Here are a few factors small business owners ought to consider to help save money on shipping.

Compare shipping service providers
There are many different shipping services out there for your business to choose from. But it’s not a good idea to choose a service solely because of its brand name. It’s essential to do your research on each shipping service provider available.

This will help you guarantee that you’re getting the best possible rates for your shipments. It also helps you avoid choosing a shipping service provider that offers great rates, but poor service.
Consider parcel contract benchmarking
Sometimes doing your own research online isn’t enough to determine whether you’re getting the best possible rates with your shipping service provider. Parcel contract benchmarking allows you to compare your shipping service provider’s performance metrics and shipping rates to others in the industry. Dimensions in parcel contract benchmarking that are commonly measured include quality, time, and cost.

Even if you decide to stick with your current shipping service provider, parcel contract benchmarking helps to open the door to parcel contract negotiation and parcel contract optimization. Professionals that offer parcel shipping contract negotiations support can make sure you’re getting the best possible rates with your carrier.
Use a postage meter
Postage meters are portable machines that are able to weigh packages and assess the exact postage charges. They also print shipping labels. Postage meters are a great way to eliminate the guesswork that can sometimes go into applying postage.

Mailers may guess the weight of a package and purchase additional postage to be on the safe side. But this can lead to charging more for a package than necessary. Approximately 87 billion parcels were shipped worldwide in 2018. Those extra charges can add up quickly if you’re not careful.

If you’re looking to save money on your shipping costs, it may be in your best interest to consider parcel shipping contract negotiations and benchmarking. AFMS can help. To learn more about parcel contract auditing and how it can help you save money, contact AFMS today.