What is the shipping provider’s reputation?

There’s a good reason companies such as DHL, UPS, FedEx and NZ Post are household names – their long history of operations and experience have cemented their reputation for being reliable and efficient. However, newcomers (such as Sendle  in Australia or ShipBob for eCommerce) are shaking up the industry with their unique product offerings and focus on customer service. It pays to ask your network for feedback on companies they’ve used, as well as recommendations.

Do they offer discounts?

If you’re sending a high volume of packages, check what tiers of pricing a courier offers for different volumes. If the cost becomes low enough, you might be able to offer free shipping above a certain spend threshold and absorb the cost. While this doesn’t save you money on shipping, it improves the customer experience and increases the total cart value.

Shipping method

Currently, there are three ways to move goods internationally: air, land or sea. Air freight costs can fluctuate significantly, especially during popular shopping seasons like Christmas. It’s often the fastest method but also the most expensive. If time is not an issue and you’re not shipping perishable goods, sea freight is the cheapest option but delays can be significant. As we saw in 2021 when the Ever Given was grounded in the Suez Canal, bringing global trade to a halt, there are limited options beyond waiting when issues arise.

 Land freight straddles the middle ground of price and speed. For New Zealand importers, due to the relative geographic isolation, it can only be used in conjunction with air or sea if importing or exporting internationally.

Route planning

Related to the shipping method is the route planning. With the increase in global trade over the past decades, popular routes have sprung up around the world to transport goods from A to B. Part of logistics is determining the most efficient mix of transport methods for delivery. For example, determining which port or distribution centre to send your items to, and what delivery method to select for the final leg of the journey, when your packages have arrived in-country. Popular routes may have more infrastructure due to demand but they may not be the fastest or cheapest options for you.

Order quantity

For businesses importing from China, one way to reduce shipping fees is to increase the order quantity. This not only means you’ll be able to negotiate a better per-unit price, but you’ll consolidate the shipping into one order, where previously it might have been split over two. The shipping fee may be higher due to a higher volume or weight, but split across more units it could represent a decent saving.

Something else to consider when shipping by ocean freight is whether FCL (full container load) or LCL (less than container load) best suits your needs. FCL is charged by container, regardless of whether it’s full, whereas LCL is charged per cubic metre (CBM).  If you’re purchasing enough units or goods to fill or nearly fill a FCL, the cost per unit in shipping terms drops dramatically. To decide whether FCL or LCL is more cost-effective, a general rule of thumb is that LCL is ideal for smaller shipments or ones less than 10 CBM. Be mindful that with LCL, you’re sharing a container with other shipments. This adds a few days’ transit time on either side to account for consolidation, sorting and deconsolidation. Also, if one consignment gets flagged at customs, the whole container will undergo scrutiny.

Payment method

Finally, if you’re paying a shipping provider, sourcing agent or freight forwarder in their local currency, you don’t want to be paying more than you should on fees and margin. Payments via wire transfer are often liable for bank fees, not to mention a mark-up on the exchange rate. In comparison, WorldFirst charges a maximum margin of 0.60% percent, with a transparent fee structure. to ensure competitive pricing and lower supplier payments.