5 Logistics and Shipping Mistakes Your Business Need to Avoid

Shipping something from one place to another might seem extremely easy. However, because of the logistics involved, it’s not as simple as you think. Keep in mind these five shipping mistakes that your small business definitely needs to avoid.

Shipping Internationally Without Proper Research

Before you start shipping internationally, it’s extremely important to become familiar with the tax codes associated with each country you’ll be shipping to. Depending on the destination, taxes can be quite high.

If you ship small items, you don’t want to end up paying more taxes than your profit amount. Doing so, will put the business at risk in no time at all. Consequently, you may find that shipping internationally is not for you.

Guessing the Shipping Costs

There may be times when you are trying to send something out at the last minute. If you find yourself in a rush, don’t just guess the shipping costs. Mistakes can really add up.

For example, say you have an order of 50 widgets. You underestimated the shipping cost  by $1.50 per item. That results in a bill of $75, just for that one order. So, even if he has to wait an extra day to ship, it’s always necessary to go by actual shipping charges.

Choosing Not to Automate

Nowadays, almost every industry is automated. This includes the shipping industry. Many carriers charge extra when they have to process paper bills. That being said, it’s important for small businesses to automate and take advantage of this new technology.

Using Old Data to Estimate Costs

Always be prepared for shipping costs to increase. Using old data to earmark funds for shipping is not a good thing. Fuel costs rise. Drivers demand more pay. Fuel-efficient vehicles become necessary. All of these issues mean paying a higher cost for shipping. There’s no way to avoid it. It’s just part of doing business.

Opting for the Wrong Level of Service

Yes, customer satisfaction is very important. However, don’t opt for the wrong level of shipping service, just to please the customer.

In other words, don’t spend extra money on priority shipping if the customer hasn’t asked for it. Although they will no doubt appreciate it, you probably can’t afford an extra cost.

As a small business, the last thing you want to do is lose money. Paying attention to your logistics and shipping costs and doing all you can to keep them as low as possible will ensure that your business remains profitable.