They say there are two kinds of people: those who like surprises, and those who don’t. Of course, we’re talking about the good surprises — like finding a $20 bill on the sidewalk or being complimented for your dashing good looks. But there are also bad surprises, like the worst of them all: shipping surcharges.
Maybe we’re exaggerating a little, but they do kind of suck. While shipping surcharges are unavoidable, there are steps you can take as a business owner to prevent or even avoid them.
Let’s start by understanding what Shipping Surcharge is.
Simply put, a shipping surcharge describes any fee for extra services that are added to the base case of transporting an item. They can appear on the invoice as different things but are often categorized as handling charges or services fees. Regardless of how they are quoted, any fees added to a shipping invoice on top of the base rate are shipping surcharges.
Sometimes, you may opt to pay these surcharges to access certain services, such as weekend deliveries. In other cases, the carrier will impose these and you don’t have a choice about them, as is the case with fuel surcharges.
Sometimes it confuses for the trader to conclude what has been added to the base fee but private couriers such as UPS and FedEx, apply different surcharges to ordered shipments to offset transport and additional handling costs. Some common charges include:
● Fuel surcharges: Companies like FedEx and UPS have fuel surcharges built into their rates, which is used to compensate them for the amount of fuel used when making deliveries. USPS is the exception.
● Congestion surcharges
● Winter surcharges
● Packaging surcharges
● Signature-on-delivery surcharges: A fee for the task of receiving a signature upon delivery.
● Weekend deliveries surcharges: For those overtime deliveries.
● Peak season or holiday surcharges
● Insurance surcharges: This surcharge can give shippers reassurance and the ability to protect their investment for packages valued at $100 or higher. This allows shippers to state the value of the package in case it is lost, stolen, or damaged in transit.
● Weekly service surcharges: For those overtime deliveries.
● Residential surcharge: Applies to businesses that operate out of a home address.
Currently, many couriers are also imposing a temporary emergency surcharge in order to maintain operations during the COVID-19 pandemic. These charges vary by courier, but if you’re planning to ship packages, you should check if your carrier is imposing these charges and how much they are; but take note that this varies depending on the country of the origin or destination.
How Can I Avoid Surprises on Shipping Charges?
While shipping surcharges may not be going anywhere, there are ways to combat them as a business owner.
Check your Packaging
It would be better to pack your package in corrugated cardboard box. Don’t ship cylindrical-shape items and do not use soft-plastic pack, Shrink wrap nor stretch wrap.
Triple Check Your Information
As a business owner, you’ve got to check it thrice! Make sure all of the information printed on your shipping labels is correct, including the size, weight, and destination address.
Use Shipping APIs
Another great way to stay on your toes when it comes to shipping is by using APIs. Shipping APIs (which stands for Application Programming Interface) are tools that can calculate shipping rates and print shipping labels. Nowadays, most shipping APIs will also include address verification as part of their service. There’s a solution for everyone!
By signing up for a free Ezeeship account online, you would be able to get a better gauge on which surcharges you may need for each of your shipment. One feature of the platform is that, whether you package will be delivered to a residential address, what package you have declared its weight and height, what type of insurance you want to levy on your shipment, this will then be reflected in your estimated rate so that, you can avoid surcharges that may surprise you later.
You can view certain surcharges on the Ezeeship dashboard.
There you have it, folks! Breaking down a topic like shipping surcharges can be a little complicated, but we hope we have made it easy, and maybe just a little bit fun. If you have any questions, please do not hesitate to contact us. We’re here for you!
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