It’s normal to expect shipments from China to be delivered quickly, reliably and affordably. Realistically though, shorter delivery cycles get in the way. Shipments seem to always be up against challenging delivery dates. While it’s tempting to have a factory do your shipping, it will negatively your business, especially if they ship to your customers. It’s more important to take a holistic approach to reduce overall shipping costs and delivering faster.
In this guide, you’ll come across some smart ways to understand and lower your shipping costs without hurting your bottom line. Some you’ll know; others must be taken into consideration and actioned in 2020!
Calculating Shipping Costs
Before trying our Quick Quote shipping calculator, refresh your knowledge base on other factors that determine your spend. Chargeable weights, dimensions, destinations, values, and shipment types all figure prominently. We dig a little deeper below.
Major carriers use a pricing technique called dimensional weight or DIM to calculate shipping rates. Shipment calculations reflect package density. Less dense items occupy more space. Tissues take up a lot of space, lapel pins do not. 1000 tissue packs may physically weigh 6KG, but their larger carton sizes boost the chargeable DIM weight 4-times.
Carriers charge the higher of the dimensional OR physical weight. The size of a package or the density will determine your cost. The calculation is done by multiplying the package length, width, and height and dividing by a standard DIM divisor. Try our DIM Calculator or use these formulas for metric and imperial measures: Package in centimeters: Length*Width*Height/5000 = kilograms, package in inches: Length*Width*Height/139 = pounds.
2. Packaging Methods
Freight packaging is the last step before loading into any carriage, and it’s a very important factor to consider. It’s essential to not end up looking like the cartons below!
In simpler times, the purpose of packaging was to protect the shipment. Now we have to consider factors such as automated storage and mechanical handling. Different types of shipment packaging affect the size, weight, and fragility of your goods.
PRO TIP: Prior to your placing your order with the factory, you must clearly specify your export packing required. We suggest you take the time to reach an agreement on how to pack your order properly. It would be natural to assume that the Chinese suppliers already this figured out. NEVER make this assumption.
For larger shipments, we suggest that you palletize your goods to minimize the possibility of damage. You will benefit from the extra steps taken to properly package your freight.
After the agreement between you and the shipper, it is their responsibility for packaging the goods correctly. Shrinkwrap, cartons, corrugated boxes, crates, pallets, strapping or banding is acceptable packaging for the freight industry.
Work closely with your China supplier, combine your practical experience together, you’ll get your goods at the destination safely.
Avoid Using Too Many Carriers
Once you find a carrier and method that works for you, stick to it. Using too many carriers reduce your bargaining power because you’ll be shipping lower volumes with each. Stick with one or two carriers to capitalize on your bargaining power.
Know Your Shipping/Duty Fees
Factor in all your shipping and duty/tax fees before shipping! There are over 75 charges that could apply to each of your shipments, including Saturday delivery fees, fuel surcharges, and signature fees. If the shipping cost is on your customer, make sure this is included on their final bill or you’ll be forced to absorb them. No surprises!
Reduce Your Shipping Costs
If not monitored, shipping costs quickly escalate. Fees can put a serious dent in your profit margin. All things considered, the need to deliver reliably and as inexpensively as possible takes experience.
Ship Customer Direct From China
Blind Shipping ticks off a lot of the above boxes. As express shippers, we work with your factory to arrange to pick up, generate new shipping documents to hide your factory. Why hide the factory? So you can safely ship directly to your customer. So you NEVER touch the shipment. So your order is delivered duty paid within days. Alibaba is breathing down everyone’s neck. Hide your factory origin, pricing, and destinations. Blind Shipping is safer, reduces shipping costs, and shortens delivery cycles.
Perry David Caplan | Founder ShipCustomerDirect.com
877-887-4472, What We Do
23,000+ shipments since 2008