International shipping is a necessary business expense, especially for businesses that have to deliver their products to customers who are situated overseas. However, most businesses that deal in international shipments often complain about how much international shipping fees affect their profit margins.
If you feel the same way about international shipping fees eating into your business profits, you will probably look for various ways to minimize your shipping costs. Fortunately, you can take measures that ensure you significantly reduce the cost of delivering international shipments to your overseas customers.
Here are four ideas on how to mitigate your international shipping costs.
Opt for Ocean Freight Instead of Air Freight
Most businesses prefer to deliver their international shipments via air carriers because it is faster than ocean carriers. Unfortunately, air freight is considerably more expensive for shipping items overseas than sea freight.
The difference in pricing is because air freight charges a premium price because of the speedy delivery of international shipments. For instance, shipping a parcel overseas via air freight takes a day or two, whereas shipping the same item via ocean freight takes a week or a fortnight to arrive.
Thus, when conducting international shipments that are not urgent, it is advisable to utilize ocean freight instead of air freight to save money.
Minimize the Size and Weight of Shipments
Before shipping your items abroad, it is essential to have them securely packed in a manner that prevents them from getting damaged during transit. Unfortunately, some businesses tend to use excess or heavy packing materials that significantly contribute to the size and weight of the shipment.
Freight companies often charge for international shipments based on their weight and how much space the shipment occupies in a boat or airplane. Thus, when you use too much packing material, your shipment increases in weight and volume, forcing you to pay higher international shipping fees.
However, suppose you can manage to minimize the size and weight of your shipments by utilizing lighter packing materials or compact packing your shipments. In that case, you can significantly reduce the amount of international shipping fees you pay. For instance, you can switch from packing items in boxes to packing them in poly bags to minimize the weight of shipments.
Compare Multiple Carriers
Most of the time, businesses assume that the carrier they currently utilize for international shipments is the best option without considering other carriers. Typically, hundreds of other carriers could provide the same service but at a lower price.
Shipping is a highly competitive industry. As a result, carriers often indulge in price wars in a bid to attract customers. Thus, one carrier will often lower its international shipping rates to compete with another carrier.
Just type in the words 'shipping calculator' on your internet browser, and you get thousands of websites that can help you compare the international shipping rates for different carriers in real-time.
Work With a Logistics Company
A logistic company often handles a bulk amount of international shipment through air and sea carriers. As a result, logistic companies can negotiate better international shipping rates with carriers due to the amount of business they bring in for the carriers.
Hence, working with a logistics company can help you take advantage of the subsidized deals carriers provide for logistic companies. Thus, when you work with a logistics company, you can get cheaper international shipping rates.
Share13 July 2021
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