The Best Parcel Shipping Process:
A Step-by-Step Guide
In the competitive world of e-commerce business, an efficient parcel shipping process can make or break a company. In fact, for small to medium-sized businesses (SMBs), streamlining shipping processes is crucial not only for managing costs but also for enhancing customer satisfaction. Well-optimized shipping processes can lead to cost-effective solutions, better delivery speeds and overall growth for your business.
In this blog post, we provide a comprehensive step-by-step approach to achieving the best parcel shipping process, with a focus on integrating affordable shipping options and ensuring reliable service. In the end, this will help protect your bottom line and keep customers happy!
Step 1: Parcel Shipping Planning and Preparation
Assess shipping needs
The foundation of an efficient shipping process starts with understanding your shipping needs. Begin by evaluating the types of products you sell and the destinations they need to reach. Are your products small and lightweight, or large and bulky? Do you ship domestically, internationally or both? This assessment helps determine the most suitable shipping options and methods for your business.
Determine shipping volumes and frequencies
Calculate your shipping volumes and frequencies to develop a strong shipping strategy. Regular shipments might benefit from negotiated rates or bulk discounts, while occasional shipments could require different strategies to achieve cost effectiveness. In the end, understanding your shipping patterns helps you plan your logistics operations more effectively and choose the best shipping solutions.
Compare parcel shipping methods
Different shipping methods offer a variety of benefits in terms of delivery speed and cost. Compare parcel delivery options such as standard, expedited and next-day air shipping solutions. The most affordable way to ship might not always be the fastest, so balancing delivery speed with cost is key to finding the best solution for your business.
Forecast parcel shipping costs
Project your shipping costs based on past expenditures, seasonality, upcoming expenses and other variables. You can also utilize shipping calculators to estimate expenses and plan your budget accordingly. Accurate forecasting helps avoid surprises and ensures that you're prepared for fluctuations in shipping costs.
Step 2: Choosing the Right Parcel Shipping Carrier
Carrier selection criteria
Choosing the right carrier involves evaluating factors like speed, reliability, cost, network and footprint. Consider how each carrier handles different types of shipments and their track record for on-time deliveries. Reliable small package service is crucial to maintaining customer satisfaction and reducing shipping delays.
Compare carrier rates
Obtain quotes from multiple shipping carriers to compare rates. Look beyond the base cost and consider additional parcel shipping fees such as fuel surcharges, delivery area charges and other expenses. You should also ask about bulk rates and volume discounts. It should be noted, however, that the cheapest shipping option might not always be the best if the carrier compromises on service quality.
Leverage 3PL partnerships
Establish partnerships with shipping companies, like a third-party logistics (3PL) provider, to benefit from negotiated rates from group buying power. For instance, partnering with Unishippers for UPS® Parcel Services can provide access to better shipping rates and enhanced service levels, helping you increase efficiency and save on shipping costs.
Step 3: Parcel Packaging and Labeling
Optimize packaging solutions
Proper packaging is essential for protecting your products and managing shipping costs. Use packaging materials that provide adequate protection without being overly bulky. For small items, flat rate boxes can be a cost-effective option while supplying the necessary protection to prevent damage.
Adhere to dimensional weight regulations
Ensure your packaging complies with dimensional weight regulations . That's because shipping companies often charge based on the size and weight of the package, so using appropriately sized boxes can help control costs. For example, avoid using oversized boxes for small items to prevent additional charges.
Create accurate shipping labels
Accurate shipping labels are critical for smooth delivery. Include all necessary information such as addresses. Plus, remove any old labels and protect your new labels with a sleeve in case of precipitation. Incorrect or missing information can lead to shipping delays and additional costs. You should also invest in reliable label printing equipment or use online shipping services that offer label printing. Ensure labels are attached securely to packages and are clearly visible. Proper label attachment helps prevent misdelivery and facilitates efficient processing.
Step 4: International Parcel Shipping Documentation
Importance of accurate documentation
Proper shipping documentation is crucial for smooth customs processing and compliance , particularly for international shipping. Accurate documentation helps prevent delays, ensures that shipments meet all regulatory requirements and facilitates smooth entry into the destination country.
Prepare customs forms
For international shipments, it's important to be educated on customs forms such as the commercial invoice, electronic export information, certificate of origin, packing list and more. These documents provide details about the shipment contents, value and origin, aiding customs officials in processing the shipment.
Ensure customs compliance
Adhere to international shipping regulations to ensure compliance. That includes verifying that all required documentation is complete and accurate. Non-compliance can result in customs delays or fines, impacting delivery schedules and customer satisfaction.
Step 5: Parcel Shipping Technology Integration
Utilize parcel TMS technology
SMBs like yours should leverage a transportation management system (TMS) to enhance your shipping processes. TMS technology offers features like rate comparison, real-time tracking and automated shipping documentation while reducing manual entry and shipping errors. A good TMS also allows you to ship both parcel and freight with one platform and login. Leveraging these technologies helps maintain steady shipping costs and improves overall efficiency.
Leverage e-commerce integrations
You can also integrate your e-commerce platforms with TMS technology to automate order fulfillment and improve efficiency. This integration ensures that shipping information is accurate and up to date, reducing the likelihood of errors and late shipments.
Monitor shipping performance
Using a TMS also allows you to monitor and analyze shipping performance by tracking key metrics such as delivery speed, shipping costs and insights into shipping activity. Regular analysis helps identify areas for improvement and optimize your shipping strategy.
Step 6: Parcel Shipping Cost Management
Leverage tools and strategies
SMBs like yours have many options to manage costs and find the best parcel rates . That includes utilizing shipping calculators, negotiating rates with carriers and leveraging options like flat-fee shipping or bulk shipping rates. Lastly, conduct an extensive review of your shipping practices on a yearly basis to identify opportunities for cost savings.
Compare shipping rates
Another way to manage costs is to regularly compare shipping rates from different providers to ensure you're getting the best deal. Use online tools and rate comparison websites to evaluate and choose the most affordable shipping options for your business.
Work with a 3PL as a cost savings strategy
You can also negotiate shipping rates with your carriers — or have a 3PL do that for you — to secure better deals. Building strong relationships with shipping carriers can lead to discounts and more favorable terms, helping you manage shipping costs more effectively.
Step 7: Managing Returns and Exchanges
Create a seamless return process
Design an intuitive return process by providing clear instructions and easy-to-access return labels. Ensure your return platform is user-friendly and integrates smoothly with your order management system. This approach minimizes customer frustration, enhances satisfaction, and reduces the likelihood of errors in the return process.
Handle return shipping costs
Decide whether you will absorb return shipping costs or pass them on to customers. If you cover costs, negotiate rates with carriers for efficiency. You can also implement a flexible policy, such as free returns for certain conditions, which can improve customer loyalty and encourage more purchases despite the reason for the return.
Streamline returns management
Efficient returns management involves automating workflows and integrating returns into your inventory system. You can also utilize return management software to track and process returns swiftly, analyze data for trends and optimize inventory levels. Streamlining this process helps maintain operational efficiency and reduces administrative burdens.
Benefits of 3PL Services for Optimized Parcel Shipping Processes
Utilizing 3PL services offers significant advantages for optimizing parcel shipping. From cost savings and advanced technology to scalability and enhanced efficiency, 3PL providers streamline operations, enhance customer satisfaction, and allow businesses to focus on their core competencies. Here are specific examples of how a 3PL can help you:
- Cost savings: 3PL providers leverage their customers' shipping volume to get reduced shipping rates, helping businesses cut down on logistics costs.
- Expertise in logistics: Access specialized knowledge and industry best practices from experienced 3PL partners to ensure efficient and optimized shipping processes.
- Advanced technology: Integration with cutting-edge logistics technology and systems for real-time tracking, inventory management, and streamlined operations.
- Comprehensive services: Offering a full range of services, including warehousing, order fulfillment, and returns management, for a seamless end-to-end shipping solution.
- Improved customer service: Enhanced delivery accuracy and speed contribute to higher customer satisfaction and improved service levels.
Want to read about 3PL services in action? Check out our case study on Keeperstop — a provider of goalkeeper gloves, jerseys, protective pads and more — that was struggling with their parcel shipping processes. Learn how Unishippers helped them increase scheduling consistency, integrate their software with the Unishippers TMS and improve packaging standards. Read the case study here!
Parcel Shipping Process FAQs
Parcel shipping involves several steps. First, the sender packs and labels the package, choosing a shipping method. The package is then either dropped off at a shipping facility or picked up by a carrier. At the facility, it is sorted and routed based on its destination. The package is transported, possibly using various methods like trucks or planes, to the destination hub. Finally, a carrier delivers the package to the recipient's address. Delivery confirmation is provided to both the sender and recipient, often via tracking updates.
Parcel tracking starts when a tracking number is assigned to a package. This number is used to scan the package at various checkpoints throughout its journey. Each scan updates the package's status and location in the shipping company's tracking system. The updated information is stored in a database and made available online. By entering the tracking number on the carrier's website or app, users can view real-time updates on the package's location, status, and estimated delivery time, providing transparency and allowing for better management of delivery expectations.
Unishippers provides significant advantages for SMBs specifically, including a full suite of parcel shipping options and cost-effective solutions. We offer negotiated rates through our relationship with UPS, reducing overall shipping costs, while our expertise and advanced technology streamline logistics and improve efficiency. Additionally, our strong customer service ensures personalized support and effective management of shipping processes, making us a reliable choice for businesses seeking optimized parcel shipping.
Everything You Need To Know About Parcel Shipping
Want to upgrade your parcel shipping game? Get tips and information on parcel rates, technology, packaging, insurance and more in our Ultimate Guide To Parcel Shipping.