A company’s shipping costs usually comprise of at least 10% of their overall expenses. It is therefore imperative for shippers to be more knowledgeable in various cost reducing methods that will increase the company’s bottom line. Shipping with FedEx and UPS can be very expensive, so here are a few ways to reduce those costs.
Claim Your Refunds
Did you know that 3% of packages delivered by UPS/FedEx arrive late? However the catch is that they make you claim the refund, and don’t do it automatically. Requesting credits for service failures can definitely add up and will significantly reduce your costs. However, you do have to be knowledgeable in the 40+ parameters for refunds to claim them. If you don’t have the time (as most companies don’t), use Betachon as your 3rd party auditor to claim those refunds.
Get the right Discount
If you frequently ship internationally or do domestic express shipping, then you most likely can negotiate for a better discount. Don’t be ashamed to ask for it. You are the customer who is spending hundreds, if not thousands of dollars every month and therefore have the right to spend less. To effectively negotiate with UPS/FedEx, business need to be very knowledgeable in their shipping needs, volume, and projections. If one isn’t up to date on this, it is recommended to consult with a 3rd party auditing firm, such as Betachon.
Use a 3rd Party Shipping Insurance Provider
Another way that UPS & FedEx make their money is by overcharging the customer on insurance costs. While UPS/FedEx charge $0.70 for every $100 of Declared Value, a 3rd party will charge significantly less, usually around $0.30 per $100 of Declared Value. So for a shipment that has a declared value of $5,000, UPS/FedEx will charge you $34.30 (the first $100 of declared value is free) and the 3rd party will charge you only $14.70. So that equals to a 57% discount by using a 3rd party! Multiply this amount by hundreds of packages that you might insure a month and you are greatly decreasing your insurance costs.
Betachon has partnered up with several reliable 3rd party shipping-insurance providers so don’t hesitate to ask us who to use!