Shipping

Key Considerations for Multi Carrier Shipping: How to Boost Profits on S

Looking for a solution on how to boost profits when shipping your products? Here are a few key considerations for multi carrier shipping to keep in mind!

We live in a pretty competitive world where online shoppers want to save money on shopping online and finding the cheapest shipping possible. A lot of business owners think that they cannot offer a reliable and secure shipping and make a profit out of it, especially if you are using multi carrier shipping solutions. If you are one of these people, you are wrong.

Many businesses, in the business-to-business sector or B2B decide to charge their shipping cost to their buyers. The question here is – Are you charging the list or published rate, are you charging the negotiated discount or a combination of the two?

The businesses that charge published rates when shipping the products will acquire the most profit. If the customer or the end buyer doesn’t choose or specify the shipping carrier or the service level when buying an item online, it is up to you to choose the most affordable shipping carrier based on the rates at the time of shipping. The businesses that charge previously determined or negotiated rates can also acquire a profit as the negotiated rates reflect the base discount.

In this article, we are going to share a few key considerations for multi carrier shipping and all of these considerations are related to increasing your profit when shipping. Let’s start:

  • Using a combination of regional and national shipping carriers will produce the most profitable results when charging negotiated rates and using multi carrier shipping solutions. Usually, the regional shipping carriers are affordable and less expensive when compared to international shipping carriers and they cover a larger one-day delivery zone. Most shipping software systems will get rid of shipping carriers and services during shopping which aren’t really qualified for the destination. In this situation, it is a perfect timing to include regional shipping companies. The secret is charging the negotiated rates to rate shop and add “time in transit” calculations to use guaranteed shipping for one day or two-days shipments.
  • For buyers that are invoiced item plus the shipping cost, you can account for accessorials at the time you are preparing to ship the item. If these charges are not taken into consideration at the time of shipping, you will receive the bill for these additional costs. It is uncommon for a certain company to invoice a buyer after miscalculating or missing shipping fees. When implementing the multi carrier shipping solutions, we highly recommend you to invest in a packing algorithm so you can accurately rate the shipping cost when a customer places the order.
  • If you have a buyer that wants to pay the lowest shipping fee and wants to be charged accurately for what the shipping carrier charged you, you have a problem. Unless you are interested in creating an accounting torture to bill your customers the fees after you will receive an invoice from your shipping carrier, then in this case, you may want to consider shipping the item on their account. A lot of companies will prefer to use the buyers’ account and charge the third party, however, there is a better strategy if you want to keep your buyers. There are shipping carriers that will offer a unique shipper account which can be confirmed from your shipping software system where the buyer is the billing address and the pickup address is your company. Every time you ship an order, all you need to do is pick the account number of the carrier and they will receive the final bill.

By keeping these key considerations for multi carrier shipping you will boost your profit and keep your customers happy and satisfied at the same time.