What I look for in a Shipping Company
Oct 5th, 2008 Posted in Selling online | one comment »
Selling online requires that you develop a close relationship with your shipping company. You will need to invest quite a bit of time finding the best carrier to handle your shipping needs.
With so many options available; you can have the upper hand in negotiate discounts based on the volume and carriers you use.
Note: Most carriers will designate an Account Manager. The Account Managers are there to assist you and ultimately ensure that you remain a happy and loyal customer. Always, keep their email and number on hand; along with their Supervisor’s Info.
Everyone has their favorite carrier; for whatever reason.
These are the Key Points I look for when dealing with any Carrier or Freight Company
1) Coverage Area
This is critical for your business. Understanding the limitations of your carrier will enable you to better service your customers.
For example: The Carrier may deliver to Capital of State but not the surrounding areas. When the carrier does not service the area; they usually do one of two things.
One: Subcontract it out to a local delivery company or
Two: send it back to you (most of the time they do not inform you of this)
You should always know if your carrier is NOT making the delivery. Getting to know the coverage area will determine your Choice of Carrier.
Some carriers offer you a delivery guarantee. If they do not delivery by the guarantee date you do not have to pay the full shipping fee.
2) Account Manager
Your Account Manager is your liaison with all departments. This is the person that will negotiate the Discount percentage offered to you, communicate with the Billing department in the event of any errors and ultimately guide you through their Damage / Loss Claims Department when needed.
They are to provide you with instructions on how to use their website tools, how to order supplies and MOST IMPORTANT to understand the packaging guidelines and the difference between Ground and Freight.
If you send out a lot of Overnight or 2nd Day Delivery, shop around and compare rates. Some carriers are known for offering you up to 75% off the standard fees.
3) Transit times
This is the estimated time of delivery. The estimated time of delivery will guide you to determine the total amount of delivery time you provide your customer.
For example: The order is submitted, allow yourself time for packaging and to ship out. Keep in mind the Weekends and Holidays. So if the carrier informs you to allow 5 business days for a Ground shipment delivery, then you should allow yourself 3 business days to process an order and add some wiggle room for the carrier in the event of delay due to weather or transportation issues.
If order is picked up in Los Angeles, CA delivery to Manhattan, New York advise the buyer to allow 7-10 business days for delivery, from the date order is placed.
4) International Shipping
Shipping international will require that you fill out and provide Customs Documents and can be subject to Brokerage and Duty fees. You must be very clear who will be responsible for these fees. UPS will not deliver unless the fees are paid at Border or you pay upfront.
However, FedEx will delivery even without collecting the Duty and Brokerage fees from the buyer. FedEx will bill you directly to your account and these fees can be costly. So make sure to contact your Account Manager for assistance.
5) Customer Service
Important for every business to have professional and knowledgeable Customer Service Representatives. This would also be an extension of your business. In the event your buyers need to contact the carrier you want to have the assurance that they will be provided with accurate and timely information.
6) Online tracking
Online tracking even in today’s High Tech World is NOT always reliable. UPS has a pretty accurate system. I would have to point out DHL’s tracking system is the worst. On many occasions DHL has indicate a Delivery made; only to be informed by the buyer the delivery never took place. This can easily eat up TWO days for them to locate and provide you with an answer.
If you are lucky it will only take two days. These types of Errors can very costly for you. You ultimately can lose a sale due to the negligence of the carrier.
Note: Your company MUST provide Exceptional Customer Service to avoid complications with your Buyers due to carriers faults.
7) Claims
This is such a tricky and stressful subject. From the disappointment in your buyers voice to the paperwork and denial letters of liability. Just like most Car Insurance companies, the carrier will always deny the claim. I have had claims denied; even when the carrier admitted to loosing the packages.
At this point, you will have to ask the buyer
I. To hold on to the package and contents for inspection
II. Buyer to email you images of the damage to the box and the contents.
You must file your claim on time as per the carriers conditions. Have the print out of the tracking, Invoice cost of the item and fill out the claim form and fax promptly. Failure to FILE per the carriers timeline can result in DENIAL of your claim and cannot be appealed.
Should they deny your claim after complying with all the conditions, do not worry, you have the right to appeal the decision.
Billing Department
Examine all your invoices carefully. Any discrepancies report to your Account Manager or contact the Billing Department Directly. Have the package information including dimensions and weight ready.
Typical charges that may appear and NOT provided to you at the time you obtained a quote:
a) Residential delivery
b) Weight charge
c) Measurements
d) Address verification
Shipping can be tricky and very costly. You should have several accounts opened in the event one carrier cannot delivery directly to an area. Having multiple accounts also allows you more flexibility in pricing. The more carriers you use the better off you are.
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