Shipping costs are typically the 3rd largest line item after merchandise and labor costs. So, maximizing your shipping spend is crucial to your business’ bottom line. For e-commerce merchants shipping expenses require 10% of their generated revenues. Auditing shipping spend and invoices is essential given the substantial financial investment of shipping.
Save on Shipping Costs
Both FedEx and UPS offer a 100% money-back guarantee on packages delivered late by 60 seconds or more. However, the identification and filing of refunds and credits is a complex and time consuming process. Many businesses do not have the time or resources to dedicate to monitoring shipments and claiming due refunds, which is why more than $2 Billion dollars of shipping refunds go unclaimed.
Additionally, to save on shipping, businesses should consider auditing invoices from their shipping carriers. Invoice audits track your invoices for incorrect fees, surcharges, and rates based upon the terms of your contract with the carrier. Common invoice errors include the incorrect assessment of rates, residential vs. commercial surcharges, address corrections, manifested not shipped, or DIM weight fees.
With an estimated 5% of shipped packages arrive late and inevitable invoice errors, monitoring the activity on your account with your carrier is crucial to the bottom line.
If your business ships with FedEx or UPS, consider taking advantage of a refund and invoice auditing company allowing your business to focus on shipping orders, not claiming due refunds and credits.
Information is presented by 71lbs. 71lbs is dedicated to helping businesses maximize shipping spend. Solutions include money-back guarantee refunds, invoice auditing, lost and damaged claims and consulting on opportunities to manage and optimize supply-chain expenses.