How can you ensure that you get the best deal if you are in the export industry?
Shipping can be a disaster if you don’t carefully consider all options. This could have a negative impact on your business. It is costly to make mistakes like not inspecting freight before it’s shipped and not choosing the proper shipping method. Uninformed exporters could also face challenges due to customs laws.
It’s good to know that there are many resources available that can help small exporters understand their options, save money, and navigate international shipping regulations.
Exporters often face the most significant problem of estimating the product’s weight, size, or shipping costs. This is especially true if you don’t do the shipping yourself and rely on your distributor to deliver your order. Businesses often pay more for shipping to ensure their shipment arrives in a timely fashion.
It is essential to research all shipping options and costs to ensure that you are not left guessing.
Do your homework.
The top shipping companies offer easy-to-use online tools that allow businesses to access shipping options depending on their industry, size, and whether they are domestic, international, or both.
Consider Less Than Container Load (LCL) if you frequently export bulk goods but cannot load a full truckload or container. LCL allows freight forwarders to move shipments from 100 pounds up to 20,000 pounds. To save money, you can ask for consolidation of your cargo with loads from other companies if the cost is too high.
Avoid Hidden Fees.
When shipping goods abroad, you need to be sure that proof of delivery is provided, as well as customs charges and export compliance. Shipping costs can be as high as 30% due to customs taxes and duties. It is essential to understand all terms and conditions, as well as hidden fees that may be associated with the shipping option you choose. Know who is responsible for these fees. If your supplier ships on your behalf, find out if you are responsible for custom taxes, etc. This distinction could impact your bottom line. Talk to your international freight forwarder about the terms of shipping internationally and the standard customs procedures. Also, ask them how they can help you reduce costs.
Establish and communicate your shipping policies.
Establishing and communicating internal shipping rules is an essential step in ensuring cost efficiency for all shipping activities. This allows everyone to be clear about which shipping method they should use and when.
To help you prepare for unexpected problems, ensure that your customers are familiar with your shipping rules. If you ship goods for at least four days, but your customer requires overnight shipping, create a policy that will require additional fees for expedited shipping.