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6 Logistics Mistakes Made by Small Businesses

Shipping mistakes can be costly. Not only can they seriously hurt your bottom line, but they can also hurt your relationship with the lifeblood of your business: your customers. Know how to avoid these mistakes by staying competitive and running a tight “ship.”

MISTAKE 1: FAILING AT FREE SHIPPING

Many online retailers today offer free shipping. Customers have grown to expect it, and will often look for it before comparing product pricing.

Pro Tip – Find out if free shipping is the best choice for your business before you jump in with both feet. Try running a promotion giving your customers the choice between free shipping or an overall discount. This is a great way to discover how important free shipping is to your customers.

If you decide to go the free shipping route, consider offering additional options for upgrades at checkout. This way you can still cater to customers who prefer to pay more for faster shipping or demand more exact delivery dates.

Adjust pricing of your entire inventory to absorb the added shipping cost. Let predictable, competitive rates on uShip guide your calculations.

MISTAKE 2: CHOOSING THE CHEAPEST RATE

Whether you offer free shipping or not, your business is naturally going to benefit from affordable shipping costs. Securing great prices on shipping is an easy way to save money and really help your bottom line. Just remember that cheap is not always the way to go. Let’s just say that there’s a reason the word “cheap” has negative connotations.

Pro Tip – Thankfully, on uShip, you can evaluate honest reviews and feedback from real shipping customers who have booked with service providers on our site. We are one of the few online shipping options that aggregates and offers up this valuable insight on providers.

Sometimes the cheapest choice isn’t the best choice. We provide you with all of the information you’ll need to make the best decision. Service reviews and feedback

MISTAKE 3: PROVIDING INACCURATE INFORMATION

When you’re getting quotes for the cost of shipping, it’s imperative that you include accurate address, location type, dimension, and weight information. Also, always double check your data entry. Look for things like missing digits or unit types. These small mistakes have been known to cost thousands of dollars.

Pro Tip – It can be tempting to guess at weight and dimensions, but be sure to use a calibrated scale and measuring tape to avoid costly upcharges. Nothing is worse than a provider demanding additional payment from your customer in order to release your product at delivery.

Shipping is your final opportunity to impress your customer. Utilize every field provided in the uShip listing form to ensure fewer problems on down the road. Include detailed shipment information

MISTAKE 4: DABBLING IN DIY DELIVERY

The more we get to know our customers, the more we hear the same story: a small business buys a truck or two to make their own deliveries, thinking DIY delivery will reduce their overhead. In most cases, this decision seems to backfire. Small business owners realize their labor is better spent at the office than on the road. Also, trucks are expensive to purchase, staff, and maintain.

Eventually, as business picks up, managers wise up and turn to uShip as their shipping method of choice.

Pro Tip – Leave shipping to the professionals. You can book, track, and manage your shipments directly through uShip. This gives you complete control but frees up your time and resources to concentrate on your business.

MISTAKE 5: OUTSOURCING INBOUND SHIPPING

Take control of your inbound shipping costs. Have you asked your suppliers if there’s flexibility with covering shipping?

Pro Tip – You could save a lot of money controlling shipping costs on your inbound supplies. Just make sure you have the personnel on staff to handle the logistics. Who knows how much you could save on your total supply chain shipping with uShip!?

MISTAKE 6: NOT RESEARCHING RATES

With shipping, it’s easy for small businesses to set prices, and then forget to adjust them. You have other things to deal with, and rates can’t change that often, right? Wrong.

Shipping rates on larger-than-parcel goods are like the stock market. They’re constantly in flux.

Pro Tip – If you roll a set shipping cost into your customer’s total, make sure you’re updating that price based on market conditions. Otherwise, shipping will eat away at your margins. With uShip, you can always compare competitive quotes based on the current market.

Reviewing quotes and transit times

So, follow these guidelines to help keep your “ship” in tip-top shape. Check out our Help Center to learn more and ensure the best shipping experience for you and your customers.

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