6 Shipping Tips Every Ecommerce Owner Should Know to Manage Inflation, Surcharges, and Rising Costs

Have you noticed your grocery bill getting more expensive?

As you walk through the aisles, the price tags for some items seem higher than ever. The cost of staples like eggs and milk seems to be rising at alarming rates. Inflation is the reason for it. Australia is experiencing record rates because of the aftermath of the pandemic and increased consumer demand.

You’ve likely noticed it’s not just your favourite grocery items going up in price. All aspects of running your business are getting more expensive, especially shipping. That’s because many courier providers have had to introduce surcharges to manage the additional costs they’re absorbing.

So how can you manage inflation and surcharges when it comes your own shipping strategy? Fortunately, there are several solutions you can implement to stay on top of your budget. Use these expert tips to help get you started.

How to Manage Inflation

Inflation is expected to peak later this year before declining by the end of 2023 or early 2024. You don’t have to wait for the tide to turn. Use these strategies to stay ahead of it.

Utilise a Multicarrier Shipping Solution

Shopping around for the best rate is a great tactic for managing inflation and surcharges. However, that doesn’t mean you need to visit ten different websites and analyse the prices for every courier. Interparcel’s multicarrier shipping solution enables you to find the best rates from Australia’s largest range of courier providers. You can even filter the results by price, so you’re spending less time on shipping and more on other parts of your business.

Use Smart Boxing

Have you ever calculated how much you spend on packaging? You should also consider the extra costs when you ship multi-item orders with plenty of leftover space. These factors add to the rates you pay. That’s why we recommend Smart Boxing. It’s a handy feature displayed on the dashboard of Interparcel account members, and provides you with the most efficient way to pack multi-item orders every time. You’ll save on packaging materials and reduce wastage.

Add Live Shipping Rates to Checkout

Instead of stressing over shipping costs, why not empower your customers to choose how much they want to spend on delivery? You can activate Live Shipping Rates from the Interparcel dashboard and place the decision in the hands of your shoppers. It will display real-time rates from your preferred courier providers so your customers always have a selection of delivery choices to choose from. Your buyers might be happy to pay more for express delivery or spend less and wait patiently for it to arrive. The best part is that it won’t eat into your profit margins and can also reduce your cart abandonment.

How to Manage Surcharges

Many new surcharges were introduced in 2022 and continue to exist in 2023. Fortunately, some are avoidable provided you follow these tips:

Review Prohibited and Restricted Items

Even though it might fit in a cardboard box or satchel, it doesn’t mean it can be sent in the mail. Before you ship anything, you should review the prohibited and restricted items list. The prohibited items must not be sent through our services. Restricted items are deemed unsuitable for shipment by our services and can cause delays, confiscation and surcharges. If you do ship any of these restricted items please be aware that they wont be covered under transit warranty.

Correctly Measure Your Parcel

You need the correct measurements of your parcel to determine the shipping cost. Without them, it can result in additional charges. The best way to measure your parcel is to:

1. Pack your items in a satchel or box. We recommend a plain double-wall carton box.
2. Don’t overfill or leave any loose ends on the box.
3. Place the box against the wall and record the width, length and height to get the most accurate reading.
4. Round up one or two centimetres when entering dimensions for a quote.
5. Take a photo before collection in case there is a dispute.

Weigh Your Parcel Accurately

Weighing your parcel is also important to get right. You can record the weight using scales and rounding up to the next kilogram to be safe and avoid surcharges. However, you’ll also want to capture the volumetric weight. Use this formula to get the figure you need:

Stay on Top of Inflation and Surcharges

You don’t have to stress about rising costs impacting your business. Even though inflation and surcharges are more prominent today, you can utilise these strategies to help manage your fulfilment costs without sacrificing customer experience.

Want to get started? It’s easy. Open an Interparcel account today and get free access to the Shipping Manager, Smart Boxing, Live Shipping Rates and more. For more information on the common issues caused by inflation, download the6 Crucial Shipping Challenges Every Ecommerce Owner Must Conquer in 2023.