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Five ways to lower your shipping costs

The Shipping Industry - The Backbone of the Ecommerce Industry

One of the most important inventions in the history of mankind is transport. Use of technology for creation of motor vehicle which have enabled us to save times and make our lives swift has really added up to the quality of life. Today, everyone has and can afford the sources of transport as they have been made pocket friendly with improvement in technology from time to time. Transport hasn’t just empowered the common individuals but also created new horizons for commerce to prevail in.

The shipping industry is thought to be the backbone of commerce worldwide, especially the ecommerce sector which depends highly on shipping on daily basis to deliver their orders to final consumers. Billions of people around the globe are engaged in the shipping industry for earning their bread and butter, while billions are making use of it to fulfill their needs and demands by getting products delivered to them. So, shipping has really helped in getting the global economy ahead while by contributing to globalization by connecting continents via sea.

The Risks Involved in Shipping

For those who are actively engaged in shipping, they must be aware about the risks involved with shipping. Some of them must have even come across and faced a loss in the past. Just like any other business, shipping too involves risks at various level during the process of shipping. Losses can occur from natural occurrences or even errors by humans. They often lead to financial loss as well as affect your business's name, brand and credibility. Below are some of the cause of losses involved in shipping:

 

Fire/Collision

Fire and collision are responsible for 1 in 6 cases of losses or wreck of ships leading to damage. One of the main reasons for the same are to ship via transport corporations which do not have a well maintained fleet. Always be sure to make use of reliable shipping companies.

 

Theft

Theft is another risk whereby goods get stolen out of packages. These kind of activities are usually carried out by the employees of shipping companies. Always go for a good and reliable company which employs the manpower after initiating a background verification.

Lost

Usually all natural calamities lead to loss of goods. This further adds to financial loss to the sender along with the delay in service in that the goods will have to be sent all over again. Losses can even occur due to theft and it requires one to go for a comprehensive insurance coverage to cover the losses.

Other unforeseen causes

Unforeseen causes include wars, ship hijacks etc which can lead to damage, loss or delay in delivery. These circumstances are beyond the control of shipping companies and nothing can be done about them from the end of the sender or the company.

Lower Shipping Costs by Lowering Shipping Risks

Shipping risks can easily be lowered to a great extent by doing some homework prior to getting the goods loaded for shipping. Please note that lowering your shipping risks lowers your shipping costs.

Choose a reliable shipping partner

The very first step towards lowering the risk is to choose a shipping company which is reliable. This way you will be sure that your goods are in safe hands as the company will be having employees whose backgrounds have been checked and verified. Moreover, good shipping corporations will work together with reliable insurance providers and will also help you in getting your goods insured before loading them on deck. DHL is an example of a reliable shipping company which offers its services across the globe. 

Packaging matters

Packaging provides protection to your goods while they are on board. It also ensures that the goods reach your end users safely. Therefore choosing the right packaging material is essential. There are industry standards for packaging of goods which every seller must follow. Proper cushioning, air pillows and other forms of safety equipment must be a part of your packaging. The employees who are responsible for packing your orders must be experienced, well-trained and instructed.

Get insurance

Insurance is no doubt the best way to ensure financial safety of your goods while they are transferred from one place to the other.  There are tons of insurance companies out there which offer comprehensive insurance policies for the shipping industry specifically.  A good insurance agent will help you in determining the insurance policy that is the best for you.  Opt for an insurance policy which offers the maximum protection against your goods at the best possible price.

Verify Vendor/Supplier Procedures

You can also verify the procedures and guidelines followed by your vendor/supplier to make sure that they are adhering to all the right procedures when shipping your orders. This will definitely lower the risks involved with shipping.

Labeling

Making sure that your package is labeled properly will reduce risks especially the risk of packages getting lost. 

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