Every Nigerian business that deals with moving products from one place to another has to deal with rise in shipping and logistics costs. Shipping costs are one of the biggest expenses for many small Nigerian businesses, which can really drain resources and upset customers.
But you reduce the sting by considering these 5 ways shipping cost savers:
1. Negotiate with multiple shipping companies. All shipping companies have pricing schedules based on volume: The more you ship, the lower your rate. If you ship large numbers of packages, compare prices and try to persuade carriers to offer lower rates. For instance,”If EPS knows ChibykeGlobal is vying for your business, you’ve got something to negotiate,”
2. Use packaging provided by your logistics company. If you use your own packaging, you could face additional “dimensional fees” if your box exceeds the size regulations set by UPS and ChibykeGlobal. To avoid those extra charges, consider using the packaging provided by your carrier, which doesn’t have dimensional fees.
3. Consider a regional carrier. Such carriers often provide the same services as DHL or UPS at a reduced cost. Regional carriers include ChibykeGlobal Logistics Service in Nigeria.
4. Factor in all shipping fees before billing your customers. Carriers have more than 75 special charges, including fuel surcharges, fees when requiring a signature from the recipient, or Saturday delivery fees. If your customers pay for shipping, be sure to include all these extra costs in their bills so you don’t end up absorbing them yourself.
5. Invest in prepaid shipping. To help cut ChibykeGlobal costs, consider prepaid shipping, which offers a discount rate of up to 20 percent. This means you buy a quantity of shipping labels upfront and affix them to packages as needed rather than pay for each package when you send it out. Prepaid shipping works best when you know you’ll be sending out the same weight packages repeatedly and can determine the shipping cost in advance.
About the Author:
Chibuike Ogbuanu is the CEO of ChibykeGlobal.com – a Lagos-based freight-forwarding company that offers affordable and reliable shipping, air freight, warehousing and haulage services. You can follow him on twitter and linkedin.