Any distributor knows and understands the challenges faced in packaging and shipping products from one point to another. Such an individual has to factor in the overhead cost of running the operation seamlessly, coupled with shipping complexities. These shipping intricacies vary based on the product size. Smaller items are easy and less expensive to move around than their large counterparts. For example, a footwear company may spend less money, effort, and time transporting several batches of sneakers or shoes across several locations than a diesel generator manufacturing company.
The world of shipping and delivery has become more convenient for business owners, as there are reputable shipping companies that can move goods from one continent to another at affordable shipping rates or tariffs. However, it is worth noting that number, size, and location come into play in transporting these items. The influx of these logistic firms has increased eCommerce. Additionally, it has also reduced production lead time for many manufacturers and business owners.
Shipping Procedures for Shipping Companies
When hiring a shipping company, it is essential to know how much they charge per shipment. Most shipping companies charge using the girth of a package, which takes into consideration the length, thickness, and weight of a product. Hence, companies like FedEx and UPS charge based on the weight and space an item occupies in a shipping freight or cargo plan. As a result, a business owner needs to look for the most affordable shipping tariff to get the best delivery deal.
However, getting a cheaper shipping cost for a product batch requires packaging it optimally to save space. Here is an example to explain this scenario. If a business owner places an item inside a shipping container, the shipping company will charge such an individual for the remaining space, notwithstanding the weight and size of the item. This tariff is based on the fact that the delivery company utilizes the truck or plane space for that particular batch delivery, even though the items shipped are few. Hence, the shipping company charges for minimum weight, penalizing the recipient for inefficiency.
As a result of these increased shipping tariffs, the business owner has to charge customers more to deliver their products and prevent loss. Once this occurs, prospective customers will have no choice but to consider other manufacturers or business owners.
Getting the Right Shipping Cost from a Reliable Shipping Company
Customers are more drawn to cheaper but quality products. As a result, the business owner must balance providing customer satisfaction and generating profits to keep the business running. This process would also require finding the exact shipping tariff a shipping company will charge for different products. Most shipping companies provide estimation tools or software that help individuals and corporate organizations get precise information about a shipment by inputting specific data, including the package’s dimension and weight. Once done, the logistics company will provide a quote for their service. Some of these tools are standalone or web-based systems.
It is essential to pre-package the product to evaluate its dimension and shape to determine the exact cost before getting a quote from the shipping company. Depending on how the individual wraps such an item, such a person may end up with one or more shipping boxes. Additionally, some items require special packaging, especially those that are fragile or expensive. However, bear in mind that this factor will influence such delivery boxes’ dimensions and weight and give the business owner an accurate cost. By doing so, the distribution company will know how best to charge its customers accurately.
Automating Shipping Calculation for Product Delivery
Many business owners who are new to shipping may wonder if there is an ideal solution to calculating the precise cost required to ship a product item. They may suggest connecting the API of a shipping company to their websites to determine the exact shipping tariff in real-time. This reason is attributed to the fact that they want to know how best to charge their customers without overcharging or undercharging them. Unfortunately, most shipping companies do not provide this option.
On the other hand, they require the business owner’s input to determine an item’s final shipping cost. The distributor determines the packaging dimension and weight. For this reason, and as discussed before, the individual should package the product to optimize the best form and size possible – the aim is to save space. So, plan a possible order combination according to the required length, breadth, height, and weight. Input the dimensions into the software to determine the final shipping tariff. There is no automation for this process – the business owner has to do this alone. With these dimensions at hand, it is easy to charge customers accordingly and record business profits.
What Makes Shipping Companies a Preferred Choice?
Transcontinental shipping requires several logistics. A distributor must consider factors like delivery timeframe, freight cost, insurance, convenience, location, and many more. Airplane cargo delivery may be a faster alternative. However, this option has its limitations, especially regarding product volume and cost-effectiveness. On the other hand, ocean freight shipping provides a reliable delivery option for business owners with large products to deliver across great distances. They can move items through oceans and waterways.
- Loading Capacity
With ocean liners, distributors can move huge, bulky, and voluminous items (Not in Trailer – NIT) from one location to another without any challenge. These items include but are not limited to vehicles, construction materials, or heavy machinery.
- Affordable Freight Tariff
Shipping companies provide manufacturers and distributors with competitive shipping tariffs. With this opportunity, they have the financial capacity to transport items over long distances. Besides, the cost of moving products through air cargo is four to six times more than the shipping cost.
One of the safest means to move items from one location to another is through shipping. Hence, the shipping industry is the most patronized globally. Manufacturers can convey vessels, cargo, and people safely across great destinations. Additionally, shipping items are insured and loaded to comply with safety regulations, limiting property loss.