Shipping may seem like a rather straightforward element of running a small business, but it can actually be one of the most complex. There are a lot of things that can go wrong, even for the most seasoned entrepreneurs.
Efficient and reliable shipping plays an important part in your reputation and helps you gain a loyal following. To keep your operations smooth, you need to know what to avoid.
Interested in learning more? In this article, we are going to take a look at five common shipping mistakes that your small business needs to stay clear of.
Miscalculating shipping costs.
Shipping cost miscalculations are a significant financial drain for small businesses. Overestimating can drive customers away, while underestimating can eat into profits.
Be sure to speak directly with your courier about pricing before you charge your customers. Different shipping methods come with different costs, so plan ahead and do your research.
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Failing to use the proper packaging.
The condition in which a customer receives their items creates a lasting impression of your brand. Therefore, it’s crucial that you pay special attention to the packaging you are using for each of your orders.
Incorrect packaging may cause damage to your products, which can break trust with customers and lead to financial implications. It’s worth paying more for secure, custom, and eco-friendly options that will protect your items and reputation.
Not providing tracking information.
In today’s digital age, customers expect to be kept in the loop regarding their orders. Neglecting to provide tracking information can lead to dissatisfaction and unnecessary inquiries.
Utilizing shipping systems and software is key to maintaining a transparent and efficient service. Not to mention it will make things much easier on yourself as you grow and expand.
Not investing in shipping insurance.
Protecting your shipments is a crucial part of business that is often overlooked. In the event of loss, theft, or damage, not having insurance means you’re left to cover all of the costs.
Look into what coverage your courier provides and find an insurance plan that will save you from financial strain. This may require some research, so don’t rush into a decision. You’ll need to find an option that is most suitable for your business type.
Underestimating transit times.
Finally, providing unrealistic delivery timeframes can cause severe customer disappointment and frustration. Unfortunately, this is a common issue for small businesses, as most owners are juggling multiple roles by themselves without any assistance.
Most shipments travel farther or endure longer processing than anticipated, so it’s better to overestimate than underestimate. Again, you should communicate with your courier so that you can be informed of delays quickly.
Key statistics and recommendations concerning global shipping practices
Statistic | Detail |
---|---|
World Shipping Trade Value (2019) | $14 trillion |
Global Shipping Volume | More than 90% of global trade handled by ships annually |
Annual Cargo Transported by Ship | 11 billion tons (Approx. 1.5 tons per person on the planet) |
US Large Product Delivery Damage (2018) | 21% of all large products delivered within the US arrived with damage |
Cause of Delivery Damage | Mostly due to poor cargo handling practices |
Business Automation Adoption (2020) | 66% of businesses worldwide use automation in at least one business function |
Comparison to 2018 | Up from 57% in 2018 |
Recommendation for Small Businesses | Must adopt automation processes, especially in shipping |
Final Words
And that’s it! As you can see from the above, shipping really is a vital component of any small business. By avoiding these mistakes you’ll be able to develop a smoother and more cost-effective delivery experience.