- by Best Inc.
- June 2, 2020
With the increasing demand for online sales, numerous eCommerce businesses turn to logistic companies for their shipping needs. Couriers, however, will impose additional fees apart from the shipping fee itself. This is where businesses tend to overlook what is being charged on their shipment. Profit margins can be reduced if these surcharges are not carefully looked at.
A shipping surcharge would typically describe an extra fee or service that is added to the shipment cost itself. These surcharges often appear as service fees or handling charges. For instance, if you require an item to be delivered on short notice, immediate pickup will be charged as an extra service for your request. Another example of surcharge would be a weekend delivery.
Below is a list of surcharges you might encounter during a shipment process:
- Fuel surcharge
- Winter surcharge
- Signature-on-delivery surcharge
- Insurance surcharges
- Residential surcharge
- Peak season surcharge
How Do Surcharges Work?
Due to a surge in demand for deliveries during the peak seasons, various couriers will impose additional fees to maintain efficient deliveries and avoid parcel congestions. With logistic companies increasing their manpower and the speed of the delivery process, this explains the surcharges during peak seasons such as shipping around Christmas.
Here is a list of surcharges that can be imposed:
- Non-machinable mail piece fee: When processing such mail, extra fees will be added on as these mails have to be sorted out manually without the automated process.
- Fuel surcharge: With the fluctuation of fuel costs, some couriers will impose fuel surcharges to cover the necessary fuel costs.
- Delivery & pick-up surcharge: Deliveries or pick up in areas that are less accessible can cost more than others.
- Handling surcharge: Handling charges might occur if your shipment exceeds a certain dimension.
- Oversize charges: Goods and items that are packed over the recommended volume will affect the overall price during shipment. As these dimensions vary during transit, it is advisable to measure your item and get a quote from a few couriers as such shipments can be expensive.
- Billing surcharge: Shipments that are billed to third parties can result in additional costs as well.
- Insurance charges: If you are looking to ship items that are of high value, you can opt for insurance services. In any case of a damaged or lost package, the courier will reimburse your loss.
- Re-delivery: In some cases where there are failed deliveries due to incorrect addresses, having your items re-shipped to the correct address will incur charges as well.
Regardless of what items you are shipping out, shipping surcharges can have a significant impact on your overall shipping costs. It is paramount to always check what charges will be involved before shipping your items. When merchants overlook these charges for a prolonged period, it can sometimes result in a hefty loss over time.
At Best Inc., we provide a plethora of efficient shipping services that meet your business needs. Equipped with top of the line fulfillment and distribution services, we can guarantee that your items will reach your customers undamaged in a timely fashion.