Ask the Expert: Parcel Shipping Tips for Your SMB

What are some big shipping challenges and opportunities for today's small and midsized businesses (SMBs)? How can you keep parcel costs under control? Why is taking advantage of shipping insurance usually such a great idea?

To get the answers to these and other top shipping-related questions from our customers, we sat down with Nick Jeter, a Unishippers franchise Senior Sales Manager with more than 8 years of experience in the logistics industry. He provided some expert advice that every parcel-shipping business can use to level up their operations and keep more money in their pockets.

Let's hear from the expert!

Q: What's are some common question you get from parcel shippers these days?

A: During the busiest times of the year, like the holiday season, people get confused about peak season timing and surcharges. That's always a big one. These days, the peak season starts earlier and earlier and goes well into the new year, often past February. The surcharges aren't enormous, but people should be aware of them and account for them in their shipping budgets to avoid surprises. UPS^® publishes their surcharges well in advance of peak season, so plan ahead so you're not caught off-guard by the small additional fee on some shipments.

Another common question we get concerns customers getting billed on the dimensional weight (DIM) of their shipments instead of the actual weight. Sometimes that's a surprise on peoples' invoices and we have to walk them through the process. Shippers need to remember that DIM weight covers the package's size in relation to its weight, instead of just the actual weight. UPS and other carriers will use whichever is greater to come up with the rate.

Q: What are some simple strategies that SMBs can use to keep their shipping budget under control?

A: It seems basic, but one thing that we see a lot of is customers having an issue with a damaged or lost shipment and not thinking it's worth the time to file the claim and go through the process. Our Unishippers franchise is actually able to put a lot of money back into our customers' pockets by taking care of most of the claims process for them. We push hard on our customers' behalf, and our success rate for claims is very high.

On that topic, we also encourage our customers to get insurance. It's often only a few dollars per shipment, and if something's got a bit of a higher value, it almost always makes sense to insure it.

Q: Speaking of insurance, can you tell us more about why you think it's so important for SMBs to take advantage of it?

A: One word: value. The percentage of reimbursements our franchise's customers receive when their shipment is insured is close to 100%. That's pretty eye-opening to a lot of people who are on the fence about insurance. Businesses will then think, ‘Just another dollar or two to cover my UPS shipping? It's for sure worth it.' Insurance is almost always a great value proposition.

Q: What do you say to SMB shippers who are debating about whether to ship via parcel or LTL freight?

A: We've found that when shipment weight hits around 90 pounds, it becomes more cost effective to ship via freight instead of UPS parcel shipping. That holds as long as it's on a standard pallet and is stacked the right way without any overhangs, etc. At that 90 pound mark, some small package surcharges come into play, and we usually encourage customers whose shipments approach that threshold to ship via less-than-truckload (LTL) freight to save money.

Q: Do you have any tips on how SMBs can minimize damage and claims through proper packaging?

A: We always want to help our customers find solutions for minimizing loss and damage. One thing we like to do is help them get someone from UPS out to their business site to take a look at their packaging and test their product. UPS will then come back with some recommendations and solutions for the business depending on their shipment types. There's a small cost from UPS involved in this process, but it's definitely worthwhile.

In a more general packaging sense, SMBs should remember the basics like using new shipping boxes instead of old ones, using right sized boxes to keep items from rattling around and protecting labels with tape or clear sleeves.

Always ask the experts: your Unishippers team

For more expert parcel shipping advice, look no further than Unishippers. We help more than 108,000 SMBs just like yours ship over 48 million shipments every year. We stand out among third-party logistics providers (3PLs) because we’re made up of franchises, like Nick’s, that are small businesses themselves. This enables us to thoroughly understand and help SMBs with their unique shipping challenges and become their true partners.

Our team of experts is standing by to answer any questions you have and help your business maximize its shipping potential. Reach out to the Unishippers team for a comprehensive, complimentary and customized shipping consultation today!