When your business needs to get products to customers, how do you get them there? For many businesses, shipping and logistics are an afterthought. They’re focused on promoting and developing great products that are in demand, but they still think of shipping as novices. Shipping items for business transactions is much different from shipping your mom’s birthday gift. Don’t take the importance of managing your logistics and shipping needs carefully for granted. Here are some mistakes small businesses typically make, so you can avoid them.
Not Researching Shipping Costs
Guessing how much something will cost to ship is likely to end in you undercharging your customers. A cake-topper company called Younique Boutique once accepted an order for cake toppers that soon became much bigger than anticipated. The shipping destination was determined in advance, and they only found out at the last minute that they needed to get cake toppers from a manufacturer in China to Hawaii quickly. They guessed that would cost about $5 per topper. In the end, Younique Boutique lost $800 on the order because they didn’t research the shipping costs.
Not Checking International Tax and Tariffs
If you are going to ship overseas, it is important to know the taxes and tariffs your shipment may face. A US company called MotoSport fulfilled a Canadian customer’s order without checking the taxes on the items they were sending. When the shipment arrived, the freight company asked the customer for $100 to cover the tax, causing the customer to decline the shipment.
Not Double-Checking Your Figures
When you’re estimating the shipping costs for a project, verify your figures before you include them in your budget. TK’s Toy Box once got a quote for 160 identical packages by weighing one package, but then entered the figure in kilograms instead of pounds. The mistake cost the business $24,000 in extra shipping costs.
Xcel Delivery Services can help you avoid these mistakes with our wide range of shipping and delivery options. Let us help you choose the right freight services in Tucson for your business. Call (520) 355-4897 to find out more.
