The team at Smart Directions are always looking at ways to improve the transparency within the logistics sector, especially when it comes to surcharges and other costs.
After all, in this economy, we’re all keen to trim the edges or save our margins. So when we received word of shipping surcharge surges, we thought it might help if we wrote about it.
Don’t worry, we won’t be incorporating any more alliterative tongue twisters. Maybe.
What is a surcharge?
A shipping surcharge is an additional fee added onto standard shipping costs. They compensate the seller and increase the cost to the consumer. There are obviously lots of different types of surcharges, which we’ll touch on, but if what you’re asking is MORE than the seller usually offers, you can expect to be charged for it.
If you don’t keep a track of those additional rates or you don’t pass on those charges to the end user, you’ll find yourself out of pocket and pinching the pounds.
What are some of the types of surcharges?
To understand how much they’re going to charge and how it might impact your business, you need to get to grips with what kind of charges could be added.
- Delivery area surcharges – delivery outside of their usual delivery range
- Additional handling charges – packages over a certain size/length/weight
- Signature requirement surcharges – certain items may require a signature (e.g. alcohol) which may incur additional cost
- Residential surcharges – delivery to a residential address or home based business
- Declared value surcharges – protecting parcels with contents worth £100+
- Print return label surcharge – shipping with a return label
- OS extra surcharge – “catch all” fee for international shipping, freight or other circumstances
Ouch!
With so many additional fees and charges, you’re probably wondering if you will ever achieve standard delivery rates. We’ll be honest – it’s tough.
Here are some quick tips to avoiding surcharges
The truth is – you will struggle to avoid them completely. The solution? Learn how to reduce these charges AND find a logistics partner who does their best to keep prices fair.
- Before sending any freight, make sure you have the correct size and weight all figured out. Make sure you double check all of the addresses and where possible, use relevant software to speed up the process without compromising on accuracy
- Ask your courier/3rd party logistics partner how to reduce additional handling costs. If they’re like us, they’ll pass on any discounts and always do their best to find a solution. If they don’t…write down our number 😉
- Do your research and look for local or regional courier options, which is especially important if you’re often delivering to a specific rural location
- Check your sizing. Does your freight need to be this exact size, or can you make the packaging smaller? Simple adjustments to packing processes could make all the difference
- If you find yourself being charged for delivering to residential addresses, consider making a business premises delivery option OR factor this into your margins so that there is a more consistent pricing structure. We thought it was a good time to tell you that we use couriers who don’t charge for residential deliveries. Just saying…
Sounds straightforward, right?
Want to find out if you can get a better deal?
All you have to do is ask! Our friendly team is on hand to help you get the best price for your shipping, and we’ll do our best to keep prices low. With years of experience creating bespoke logistic solutions, we’re confident we can help keep business moving for you. To find out more about additional shipping costs, give us a call on 01442 507240.