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Little Mistakes Costing You Big in Your Parcel Carrier Contract

April 27, 2017
5 min read
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While it may not seem like it, parcel shipping can be an incredibly expensive way to distribute your products and parcel carrier contract can be confusing. But the cost isn’t where you might think. It’s not in the average price per package or in the shipping materials, but in the little mistakes that cause you to have to do work over again. So today, we’re going to share with you how those little mistakes can cost you big time with parcel shipping, and the team at Amware will provide you with a solution for mitigating those costs.

Here’s Where You’re Losing Money

Your parcel carrier contract has a ton of information about where you’re saving money. But does it tell you where you’re losing money? We took a look at specific parcel carrier contracts and found that there are a lot of hidden fees that will cost you big when little mistakes are made.

Here are a few of the biggest costs you face with parcel shipping on a regular basis:

Invalid Address Correction

Whether it’s an incorrect suite number, or an error of inputting a “Residential Address” instead of a “Business Address,” this seemingly small error can be expensive, especially when it happens often.

Invalid Delivery Area Surcharge

Choosing the correct delivery terminal is the only way to avoid this charge. But what if the delivery area is 1, 5, or just 10 miles outside of the terminal? You can expect to be hit with a substantial charge for that mistake.

Manifested But Not Shipped

We’ve discussed that on our blog post, “Manifested but Not Shipped and How it Could Be Costing you Big Money,” but it’s worth mentioning again. This charge comes when a quantity change is processed before shipment occurs. If you forget to void the original order, you’ll pay an extra charge.

Duplicate Billing

Just like with a “Manifested but not Shipped” charge, a duplicate billing charge is when you’re charged twice for the same transaction. It happens, often. But if you don’t catch it in time, you’ll pay for it anyway.

What’s the Solution?

So clearly there’s a disconnect between the price you should be paying and the price you are paying, but seeing where you’re losing money can be a challenge. Simply looking at all of the charges yourself and matching them to your books would take a few full-time employees.

Instead of spending time on that, you can use Amware’s ParcelRate software to see how you can save tens of thousands of dollars each month on parcel shipping costs. That number depends on the amount you ship, of course, but it gives you an idea of the scale of loss we’re talking about.

This solution is an affordable way for you to really break down your parcel contract and find out if and where you could improve your system to save money. Why pay more for parcel shipping than you have to? Instead, find out where the little mistakes are and potential save thousands from your bottom line.

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