Quick Fixes to Reduce Your Overall Shipping Costs

Quick Fixes to Reduce Your Overall Shipping Costs

UPS FedEx ground transit maps Refund Retriever copy

In this guest post, SkuVault’s partner Refund Retriever goes into some tips on how to minimize your overall shipping costs.

For most eCommerce companies, shipping is one of the largest expenses other than labor and yet it’s one of the most overlooked and misunderstood. Here are few quick fixes that might help reduce your overall shipping spend quickly. 

UPS Voids – Scan Based Billing

UPS tracking numbers can appear on your invoices in two different billing methods. The first occurs when you create a label in your shipping software and run an end-of-day function. UPS applies this information to your next invoice.

The second method is referred to as scan-based billing. In this case, the tracking number only appears on your invoice with a final delivery scan. If you use UPS, be sure to ask your rep about scan based billing. Using this method insures that the label is only charged to an invoice based on the actual delivery scan. With scan-based billing, you only pay for packages you shipped and all extra charges will be accounted for on the first invoice.

If you do not use a UPS label, be sure to void the label. Otherwise, you will be charged for the full package price even if you don’t use it. Refund Retriever will monitor your UPS invoices for these packages. If we see a charge for a package not shipped, we will contact UPS for a full refund after 30 to 45 days. FedEx already uses scan-based billing for all shippers.

Ground Can be as Fast as Overnight, and Cheaper!

Ground packages are sometimes just as fast as express and overnight shipments. If you ship two packages from Houston to Dallas – one via ground and the other via next day air – they will probably both be on the same truck and be delivered to the recipient at the same time. However, the ground package will generally cost you a fraction of the price on an overnight package. Drivers usually want to have an empty truck for afternoon pickups, so your ground will probably be dropped off earlier in the day. UPS and FedEx both can provide maps with estimated delivery dates that might help you make this choice. This map is taken directly from the carriers’ website.

Saturday Delivery Fees

If you have staff operating on Saturdays, be sure to monitor your packages for Saturday pick-up charges. Sometimes you will see Saturday charge on packages that were manifested but not picked up by the carrier until Monday. You have 6 months to request a credit for these. Refund Retriever monitors Saturday Delivery Fees and will determine refund amounts and apply credit when eligible.

Know Your Surcharge Data

Sometimes accessorial charges can account for up to 25% of each invoice. It’s imperative to review surcharge data to know what you’re being billed for. Discover what fees are costing you the most, and then determine if there is a more cost-effective way to ship. Are you spending too much on declared value fees? How many incorrect addresses are you using each week? How many times does a large package surcharge double the cost of your package?


 

logo_refundretriever

Refund Retriever was founded in 2006 to focus on auditing FedEx and UPS invoices for late packages and billing mistakes. If your package is even one minute late, you are entitled to a full refund from the carrier. Refund Retriever finds these opportunities and has the credit applied directly to your account, plus provides detailed reporting to help you fully understand your shipping spend.

Optimize Your Supply Chain with SkuVault WMS

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Schedule below or call (502) 694-5210

(502) 694-5210

Monday - Friday
8:30 AM - 5:30 PM
Eastern Time