Steve Zammit, the CEO of Interparcel, has brought attention to a pressing issue in the eCommerce sector: packing errors can inflate shipping costs by as much as 150%. As small and medium-sized enterprises (SMEs) face rising labor and fuel costs, the impact of packing mistakes on shipping expenses is more significant than ever.
With courier services resorting to increased surcharges, the urgency for SMEs to optimize their packing and shipping processes has escalated. Companies like UPS are imposing a 10% hike on charges for large parcels, while Parcelforce has also raised its rates, reflecting a broader trend of escalating shipping costs.
Zammit emphasized the importance of addressing common packing mistakes to mitigate these additional costs. “Mistakes that lead to surcharges can significantly increase the original shipping price. A courier charge might start at £10, but errors made during manufacturing could drive costs up for special handling anywhere from £12 to £70, depending on weight and requirements,” he stated.
Here are some prevalent packing errors that businesses should strive to avoid to keep their shipping costs under control:
1. Overlooking Dimensional and Weight Limits: Many businesses fail to consider the specific packing and weight requirements of their courier service. Neglecting these limits can lead to substantial surcharges or even shipment rejections. For instance, products sourced from overseas, such as those from China or Vietnam, must be packaged correctly at the manufacturing stage to avoid additional costs later on.
2. Underestimating the Importance of Appropriate Packaging: Striking the right balance between packaging that ensures a positive customer experience and minimizing shipping costs is crucial. Zammit cautions that packaging choices made during the research phase can significantly impact overall costs.
3. Failing to Include Packaging and Product Tagging During Manufacturing: Many businesses delay proper tagging and packaging until the shipping phase. This approach can lead to labor-intensive processes later on. Zammit suggests that businesses perform as much packaging and tagging as possible during manufacturing to streamline the shipping process.
4. Ignoring Special Handling Needs: Items requiring special handling should be packed appropriately to avoid extra fees. If a company sends an item that cannot be automated by the courier, it may incur substantial surcharges due to manual handling requirements.
5. Neglecting Weight Distribution in Parcels: An uneven weight distribution can lead to additional fees due to manual handling. For example, if a package is not adequately balanced, it may require manual intervention during shipping, thereby elevating costs.
6. Overlooking Volumetric Weight Charges: Understanding the difference between actual weight and volumetric weight is crucial. Many couriers will charge based on the higher of the two. A flat-rate package may not apply in this case, leading to unexpected expenses.
7. Failing to Reassess Packing Processes During Business Changes: Reassessing packaging and shipping practices during significant business transitions is vital. Introducing new product lines or adjusting eCommerce strategies can impact shipping processes, necessitating a review to identify potential cost-saving measures.
In light of these prevalent errors, Zammit emphasizes the necessity for SMEs to take a proactive approach to their packing and shipping strategies. Continuous review and optimization can lead to significant savings, especially in today’s climate of rising shipping costs.
Addressing these issues is not merely about cutting costs; it’s about building a sustainable and efficient operation. SMEs that prioritize effective packing processes are more likely to enhance their customer satisfaction while simultaneously optimizing their shipping expenses.
As shipping costs continue to climb, the call to action for SMEs is clear. By recognizing and rectifying these common packing errors, businesses can ensure they are not inadvertently inflating their shipping costs. Effective packing strategies are essential for sustaining profitability and maintaining a competitive edge in the ever-changing world of eCommerce.
