Packing errors could elevate shipping costs by up to 150%

Steve Zammit, the CEO of Interparcel, has highlighted the potential for shipping costs to inflate by up to 150% due to common packing mistakes. In the current climate, rising labour and fuel costs are contributing to increasing surcharges imposed by courier services.

These financial pressures underscore the necessity for small and medium-sized enterprises (SMEs) to adopt cost-effective packing and shipping practices.

Surcharges are notably on the rise, with changes from key courier providers affecting business operations significantly. For instance, USP is set to introduce a 10% increase in charges for large parcels and additional handling fees, while Parcelforce has also raised its rates in response to escalated fuel costs and labour market instability. This has created a challenging environment for businesses dependent on reasonably priced shipping options.

In an attempt to help SMEs navigate these challenges, Zammit detailed several common packing mistakes that could lead to excessive shipping costs. He emphasised the importance of addressing volumetric weight charges, reassessing packing and shipping processes during key business changes, and incorporating packaging and product tagging at the manufacturing stage.

According to Zammit, "Mistakes that lead to surcharges can significantly increase the original shipping price by up to 150 per cent. A courier charge might initially be £10, but something done during the manufacturing process could add a surcharge for special or manual handling ranging from £12 to £70, depending on the weight and any special handling requirements."

Zammit outlined multiple errors businesses should avoid to prevent such surcharges. The first mistake is neglecting dimensional and weight limits of couriers, which can result in high surcharges or shipment rejections. "Many products sourced from overseas, such as China, Vietnam, Taiwan, or Hong Kong, need to be packaged properly upon manufacture to avoid repackaging later," he noted.

Overlooking the importance of appropriate packaging during the research phase is another critical mistake. "There's a fine balance between ensuring the item is packaged adequately for the best customer experience and keeping shipping costs in check," Zammit said.

Another costly mistake is excluding packaging and product tagging at the manufacturing stage, leading to labour-intensive processes at the shipping stage. "Do as much of the packaging and tagging at the manufacturing stage rather than leaving it until the shipping process, which can become labour-intensive," he advised.

Failing to pack items that require special handling correctly can also elevate costs. According to Zammit, any item that falls outside the automation limits of courier companies may need to be handled manually, possibly incurring substantial surcharges.

Uneven weight distribution within parcels can additionally attract extra fees due to manual handling requirements. "Uneven weight distribution may result in the parcel being manually handled and incurring a surcharge," Zammit explained.

Neglecting volumetric weight charges is another common error. "One key factor is the difference between actual weight and volumetric weight. If you're not using a flat-rate package, couriers will charge you based on the higher of two figures," he said.

Finally, businesses often fail to reassess their packing and shipping processes during significant business changes. "It's always wise to reassess what you're doing with packaging and shipping costs at key times of the year," Zammit advised, highlighting the impact of new product lines or changes in eCommerce strategies on shipping processes.

As shipping costs continue to escalate, SMEs are encouraged to review and optimise their packing and shipping procedures thoroughly, taking into account the outlined pitfalls that can significantly inflate their expenses.