7 common shipping mistakes and how to avoid them
Have you ever heard the expression “the devil is in the details?”
When it comes to shipping, this statement couldn’t be more accurate.
Shipping can be fun when it creates the “wow” moment for customers and drives additional sales. However, if not approached meticulously, shipping mistakes can wreak havoc on your business’ finances and reputation.
Even worse, if the mistakes aren’t handled efficiently and promptly, they can result in failed deliveries, which can cost your business more money in the long run. Studies show that failed deliveries cost the UK retail industry $2.08 billion each year.
Thankfully, there are things eCommerce retailers can do to avoid some of these costly shipping mistakes. And the first step is to identify them. In this post, we’ll explore the common shipping mistakes and how to avoid them. Let’s dive in!
1. Improper packaging
When was the last time you evaluated your packaging process?
Using incorrect packaging or not investing in tools to help protect goods in transit can cause your business heavy financial damages.
According to an article, it is estimated that approximately $1 billion of goods are damaged in transit in the US alone.
How to fix the issue
To address packing problems, you should:
Use sturdy packaging material for heavy items
Use appropriately sized boxes for all products
Avoid reusing packaging boxes
Seal all the seams of your cartons
Use tools like temperature indicators when shipping sensitive items
2. Relying on one shipping carrier
This is the eCommerce equivalent of putting all your eggs in one basket.
While entrusting all your shipments to one carrier can help build lasting relationships, it can also cost your business big if anything happens to the carrier.
For example, if your carrier experiences a strike, you could find yourself in a tough situation where freight is piling up with no one to move it. Plus, you’ll likely pay expensive rates if you’re stuck with only one shipping carrier.
How to fix the issue
Branch out and form relationships with several shipping carriers.
Having more than one carrier can help to keep your business running while allowing you access to competitive pricing. Not sure if you’re using enough carriers? Read this blog on assessing your carrier network.
3. Incorrect weight or freight class listing
Incorrectly listed weight or freight class can be a serious and costly mistake. Trying to guess your freight’s weight without a weigh station might result in additional fees.
What about freight class listing?
Since the lower-class costs less, businesses sometimes try to list their shipment in the lowest class. However, if you get the classification wrong, you’ll end up paying a reclassification fee, which is usually higher than the margin from one class to another.
Learn more about preventing losses from shipping fees here.
How to fix the issue
First, buy a proper weighing scale.
Always take the time to accurately weigh the shipments and classify them correctly for consistent and affordable deliveries.
4. Not having a transparent return policy
Returns happen.
In fact, the return rate for certain product categories is more than 30%, according to Forbes. To “wow” your customers and facilitate a smooth exchange, make the return policy transparent and list the circumstances under which customers can return products.
Today’s customers read the return policy even before buying a product. They want to know the process of returning a product and how you deal with returns. Not having a transparent return policy can turn customers away and make them view your business as not legit.
How to fix the issue
The solution here is to make the return policy transparent and accessible to all buyers. Make sure your return policy answers all your customers’ questions.
5. Incorrect shipping addresses
This remains one of the most common shipping mistakes.
If shoppers don’t provide the correct address, it results in out-of-pocket costs to the shipper.
Even the slightest change in the package’s state code, zip code, and the like can result in additional expenses. Plus, most couriers, including UPS and FedEx, will charge an additional fee for handling undeliverable shipments.
How to fix the issue
Always double-check to ensure the package’s address is correct. Doing so can save your business time and money down the line.
6. Not accounting for all the costs
It’s not uncommon for new shippers to feel blindsided and even confused by the cost of the shipment, especially if you make changes to your shipping process. This usually happens when some expenses are overlooked.
Although you’ll initially receive a quote based on the freight weight and destination, other factors, like delivery time, can drive up costs.
How to fix the issue
Have a deep understanding of all the costs involved in shipping and what drives them up.
Depending on your carrier, additional charges may be applied for things like delivery signatures, Saturday delivery, etc. Make sure you’re aware of these charges to save money and avoid last-minute surprises.
7. Bill of Lading (BoL) inaccuracies
The bill of lading is one of the most critical documents in the shipping process.
A carrier issues this document to a shipper and details the type, quantity, weight, consignee details, and any special information for the carrier to ensure prompt delivery.
Considering the amount of information that must be documented in the BoL, it’s not uncommon for shippers to enter some details incorrectly.
Common mistakes in a BoL may include entering the wrong commodity description, wrong piece count, incomplete consignee details, etc. Mistakes like these could lead to delays in delivery, denial of claims, incidental costs, and even penalties.
How to fix the issue
Engaging the help of someone else to help double-check these documents can go a long way to ensure improved accuracy.
Wrapping up
At the end of the day, mistakes happen.
But you can avoid them if you’re aware of the error-prone processes and areas to be mindful of. Avoiding these mistakes can help you save money, deliver excellent customer experiences, and position your business as trustworthy and reliable.