Why should I add insurance when shipping small packages?
If you keep in mind that about 11% of small package shipments are getting lost or damaged during transit, it becomes clear that these issues are more common than you might have expected.
Most small parcel carriers have only a limited liability of $100 per package if you don’t add insurance. Additionally, the process of claiming that meager payment can be tedious and often will be denied entirely, for various reasons.
Adding insurance will give you peace of mind at a very affordable price. It will protect your company from major losses and ensures that you can quickly replace a lost or damaged package your customer is waiting for.
Why do I see unforeseen charges on my invoices?
Unexpected shipping charges always create headaches, as they directly impact your bottom line and rarely can be recouped after you’ve already invoiced your customer for shipping charges.
So why do we see additional charges?
- One major contributor are the dimensions of your package. If you did not include them while creating a shipping label/quoting the shipment, the price you see is only for the actual weight of the shipment. However, if the dimensional weight turns out to be higher than the actual, this is what you’ll be charged for, and the difference can be substantial. Dimensional weight reflects package density, which is the amount of space a package occupies in relation to its actual weight.
- For example: You’re shipping a package of caramel corn that weighs only 2 lbs. but in a box with the dimensions of 12x12x12 . That would mean that your dimensional weight is 13lbs., so a big difference in price (Formula is: LxWxH ÷ 139). So always make sure to include your dimensions!
- You’ll want to make sure your dimensions are very accurate as all carriers will check them with automatic scanners and scales.
- If you have a very large shipment, that perhaps barely fits within the standards most carriers have established, you could potentially face an extra charge of several hundred Dollars, if they determine that your package was an inch longer or the girth greater (Girth: 2x width + 2x height + length) than you thought. If it bulges, the scanner will pick up on it and it will alter the dimensions. We have seen those unfortunate cases numerous times and disputes are getting denied regularly. A much less expensive option could be to ship your large package using a common LTL freight carrier.
- Another pitfall can be the address. It sounds like a business you’re shipping to but later it turns out that this business is located inside a residence and the carriers will charge extra for it.
- Address corrections: You’ll want to make sure that your address is 100% correct, including the suite number, if applicable. Most businesses located in a strip mall have their separate suite number and even if they’re easy to find, often the carrier will charge an address correction fee if it was missing.
Why does it matter what kind of carton I am using?
- Not using proper packaging will lead to unnecessary damage, headaches and lost revenue for your company.
- It is important to not only pay attention to the outside carton but also to the inside packaging.
- Make sure your chosen carton has the right size and is approved for the weight of your item(s). Double wall boxes are generally preferred. Use a good amount of cushioning material inside, making sure you have about 2-3 inches between the content and the wall of the box. The contents should not be able to shift much during transportation.
- Fragile items should always be wrapped separately. If they’re heavy, the cushioning material needs to be more dense.
- It’s always a good idea to place a duplicate shipping label inside the parcel.
- If you’re shipping liquids, sufficient and careful packaging is particularly important. These shipments must meet certain packaging requirements and should be tested by the manufacturer to meet ISTA 3A or carrier specific Design and Test Lab requirements.