(NewsUSA) – In case you are unaware, major changes to the shipping industry are afoot this year, which could cost businesses big bucks.
To better understand the transformation that is coming and find ways to save, read on:
* Beware of FedEx and UPS’s New Pricing. The two shipping giants recently implemented dimensional weight pricing for all Ground shipments. What that means for business owners is that the cost of shipping a package will be based in part on how much space it takes up in a truck, as opposed to just its weight. As a result, sending large, lightweight items by UPS or FedEx could end up costing as much as 50 percent more. With this new pricing in place, businesses should re-examine how they send merchandise or risk paying extra to ship some of their packages. Companies should consider alternative carriers, such as the U.S. Postal Service (USPS), to offset this new pricing model.
* Get Lower Rates With the Post Office. The U.S. Postal Service chose to forego a price increase in January and also recently lowered rates for Priority Mail, making it an affordable option for packages weighing as much as 40 pounds. Priority Mail is a great alternative to FedEx and UPS Ground, which takes five to six days to deliver coast-to-coast. To compare, Priority Mail generally takes only two days to cross the country.
* Make Money on Returns. According to a survey conducted by Endicia, a provider of ecommerce shipping solutions, 89 percent of shoppers say they will revisit an online store following a positive returns experience. To this end, business owners need to offer a convenient returns process or risk losing customers to competitors. One option is to use Endicia’s Pay-on-Use Returns, which allows retailers to create USPS return shipping labels to include in an outbound package or send via e-mail upon request from your customer. Postage for the label is deducted only if and when it is actually used. This means business owners won’t have an outlay of money in pre-paid shipping labels and can take advantage of low shipping rates from the USPS.
“It’s important for businesses to take a look at their shipping mix this year since there are many significant changes happening in this industry,” said Endicia Chief Technology Officer and co-founder Harry Whitehouse. “If not addressed, increased shipping fees will certainly impact a business’s bottom line.”
For more small business shipping tips, visit endicia.com/edge.