For any e-commerce business, cutting shipping costs is the key to skyrocketing revenue and profitability. Unfortunately, with the complexity of small parcel shipping, it can be difficult to identify opportunities to save money and boost your bottom line.
That’s where small parcel auditing comes in. By regularly reviewing and analyzing small parcel invoices and carrier agreements, businesses can spot billing errors and take advantage of volume discounts or other services from their carriers. It leads to substantial savings that impact the bottom line directly.
So, in this blog, we’ll explain what small parcel auditing is all about and how it can help you control shipping costs.
What Is Small Parcel Auditing, And How Does It Work?
Small parcel auditing is a powerful tool for e-commerce businesses looking to save money on their shipping costs. Not only does it enable businesses to identify and address billing errors from their carriers, but it also helps them evaluate and improve existing shipping processes.
Sifted provides parcel audit solutions that can help you track individual shipments and identify service failures and invoice errors. Their software monitors various data points, such as address corrections, residential surcharges, service failures, invalid pickups, etc. Additionally, Sifted allows you to track duplicate charges and late deliveries, which prevents unnecessary expenses.
By understanding what’s included in small parcel invoices and fees, as well as analyzing carrier agreements for discounts or other services that could reduce your shipping costs, regularly conducting an audit can significantly impact a business’s bottom line.
Using automated auditing software is typically recommended to ensure accuracy. This type of software typically helps with generating reports that highlight discrepancies found within each invoice compared against negotiated rates with carriers.
Additionally, this software helps increase the overall visibility of all contracts associated with your shipments. You get greater control over each line item linked back to each shipped order or packaged deal negotiated with each carrier service.
With more control through automation reporting tools, immediate cash reductions and long-term cost reductions can be attributed directly to these types of audits.
How Small Parcel Auditing Helps Reduce Shipping Costs
By regularly reviewing and analyzing small parcel invoices, businesses can identify billing errors and take advantage of volume discounts and other available promotions.
Studies have shown that companies who engage in regular small parcel auditing experience an average of 8% savings in total spending related to their small package shipping yearly. Additionally, depending on the size of your business, you may be able to find a cost reduction between 25-30%.
Not only can this have a direct impact on your bottom line, but it also allows businesses to gain more insight into their existing shipping processes and identify ways to save even more money in the long run.
Factors To Consider When Choosing A Small Parcel Auditing Service
Choosing the right small parcel auditing service is vital to ensuring you get the most out of this powerful and cost-effective tool. With so many services available, it’s important to do your research and select a provider that meets your unique needs – both today and in the future.
When considering different small parcel audit services, factors like automation capabilities, customer support, service fees, reporting metrics, and potential savings are all important aspects you should take into account before making a decision.
Looking at industry reviews might also help give you an idea of how helpful the company has been for other businesses with similar scenarios and goals. And don’t forget to ask about any case studies or success stories from current customers that outline just how much money they’ve saved by using the particular service in question.
Taking these steps will ensure you get the most out of your small parcel audit services and unlock consistent savings for your e-commerce business.
Taking Action To Optimize Your Shipping Operations
The take-home message here is that small parcel auditing can provide e-commerce businesses with the insight they need to optimize their shipping operations and reduce costs.
By carefully reviewing carrier invoices and taking advantage of volume discounts and other promotions, businesses can easily unlock substantial savings. Additionally, more advanced audit solutions like automated software can help increase efficiency and accuracy when uncovering billing discrepancies.
All in all, taking the time to review your existing small package shipping costs may just be the best investment you make this year – unleashing hidden pockets of money that could ultimately add up to big savings for your entire business.
