Increase Your Profit Margin With Reduced Shipping Fees

Any organization’s profit margin is an acute, dynamic financial category that can be drastically increased by simply minimizing the overall cost of doing business on a day-to-day basis. For this reason alone, to many companies are forced to begrudgingly accept the all-too traditional notion that it is commonplace and necessary to constantly shop around for innovative ways to allow a business to operate more efficiently and thereby reduce an organization’s overall fees. This is, perhaps, why seemingly unimportant costs – like the kinds of shipping services one makes use of – are often cut to extreme extents. However, by cutting small costs, things become more difficult in the end, such that nurturing a small business takes all the more effort.

And, while it’s no surprise that over half of consumers do their majority of buying online, it is, however, remarkable that larger companies with the advantage of maintaining several locations and/or a strong, influential brand, are favorably positioned to gain exuberant carrier discounts while younger, less-established companies are forced to try and compete for less-than-reasonable rates. For a business – regardless – of its size – it is always beneficial to utilize any available fee agreements and deductions that a reputable 
shipping and courier broker may offer.

Proprietorships and small businesses are, of course, essential to a 
strong economy, yet not all buyers can strategically select services and goods that can benefit them the most. Sometimes, even the most well-meaning small businesses are pushed into a position where buyers are forced to go with big-box-store product discounts and free shipping promotions simply because of affordability and, in so doing, receive lackluster products of an inferior quality. Efficient shipping practices, in this way, benefit the business by attracting customers with more reasonable shipping rates, ultimately beocming a business with high-quality products which is nevertheless able to move their inventory quickly and with much certitude. In short, by enticing customers and allowing them to quickly check out and accurately expect the time their merchandise will arrive, even the smallest business can prosper.  

In lieu of shoddy, delayed shipping and overpriced nonstop delivery, one ought to find a kind of middle ground – that is, discounted shipping from reputable companies, found by way of middlemen. Indeed, it’s best to go with a company that offers flexibility and customer support internally, while nevertheless compartmentalizing all of the available online resources to get you the best possible deal available

With this in mind, the right broker for shipments can allow small companies and online businesses to increase their profit margins through, by taking part in discounts across an assortment of carriers who can provide customers with efficient shipping at lower rates. Parcel intermediaries take on the task of matching supply and demand, in addition to automating delivery logistics. This sheer volume and brawn combined with accessibility to massive industry-specific technological platforms enable broker services to provide stellar internal customer service and outstanding reduction in shipping costs.

Finally, the primary benefit of freight intermediary services boils down to the specificity and difference in fees between LTL, “less than truckload” rates, versus FTL, “full truckload” rates. For B2C, “business to consumer” sales, these terms will always equate to the profit margin disparity. Any opportunity to move merchandise in a shared capacity resulting in FTL reduces shipping fees drastically because carriers calculate fees using a formula based on density divided by the total weight of an entire shipment and by cubic feet. Depending on what products are being shipped and their actual density, shipping fees drastically can vary in range, but in any and all cases, you’ll be saving your customers a great deal of money – which is to say, gaining momentum and, ultimately, a dedicated following of loyal buyers.

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