How to Reduce Your Freight Shipping Costs Buying Wholesale Merchandise

How much are you spending on your freight costs to get inventory to your warehouse or other storage location? If you are like many other businesses, the answer is “too much”. However, you can find some simple and effective ways over the course of this report that can help you to reduce your freight shipping costs. It is time that you made shipping more efficient and cheaper. Let’s get started.

Buying and Shipping Wholesale Merchandise

One of the best ways to save money on the inventory you need for your business is through buying wholesale products. Buying wholesale provides you with great savings on the items you need and that your customers want to buy, as you are getting them for a fraction of their typical cost and can pass some of those savings on to the customers.

Of course, whenever you are buying wholesale, you also need to factor in the cost of shipping. This is where many who are getting started in the business have problems, and even those who have been buying and selling wholesale for a while can be guilty of not fully exploring the various options available to them when it comes to freight shipping.

If you have been buying small lots, or even individual bits of merchandise as loose freight, you are doing it wrong if you hope to save. Buying in bulk, whether it is a single pallet or multiple pallets, is generally the best option. Not only will you save on the cost of those items, but you will find that you can save on shipping, as well.

You have a few options when it comes to freight shipping, which we will discuss later in the report. They include:

·         Parcels

·         LTL (Less-Than-Truckload) Shipping

·         Truckloads of Merchandise

We will also discuss the pros and cons of breaking up a pallet into multiple parcels, and we will close out the report with some tips that can help you keep your freight costs down.

Buying and Shipping Pallets of Goods

If you are still a relatively small company, you might buy just one, or perhaps two, pallets at a time. You might not be ready for a full truckload or even a portion of a truckload of merchandise. You can still save money when you are buying individual pallets since you are buying wholesale.

In some cases, you might want to break down the items on the pallet into smaller shipments, or you might want to see if the single pallet will qualify for LTL shipping. If it is over 150lbs, you can often find carriers that will take it.

Pros and Cons of Breaking Down the Goods on a Pallet for Parcel Carriers

If you decide that you want to break down the items on the pallet into units that weigh less than 150lbs, you can have them shipped via traditional parcel carriers. Those who are only dealing with small pallets or a single pallet when they are beginning might find this to be the easier option.

While this might be a good solution for some pallets that tend to have a smaller number of goods on them, or goods that are lightweight, the shipping costs will generally be higher than shipping a pallet because you are paying for each of those individual parcels.

The best way to save when buying wholesale merchandise is to have full pallets, to buy more than one, and to have them shipped either LTL or by the truckload.

Less-Than-Truckload (LTL) Shipping

Those who are buying pallets will often find that LTL shipping is a good method. These types of carriers will typically have lower rates than parcel carriers, which helps to provide you with more savings.

With this type of shipping, there will generally be several customers’ items all packed into the same truck. In addition, LTL shipments, because they may have to go to several varied locations, could be handled and moved to different trucks several times through the course of their journey.

The Benefits of LTL Shipping

LTL can be a great choice, as it has some fantastic benefits for those who have bought and need to ship merchandise to their warehouse or other storage facility. One of the biggest benefits when you use this type of shipping is cost savings. You are only paying for the portion of the truck you are using, and you are splitting the costs with other customers who have space on the truck. It tends to be much cheaper than trying to ship individual parcels.

It also happens to be flexible. If you have pallets that need to go to several different locations, such as a warehouse in another part of the state or another state, LTL could be the ideal solution. They have a hub system that can move the goods from one truck to another to get them to where they need to go.

Truckload Shipping

The next step up is truckload shipping, and it is utilized when you have a large amount of wholesale merchandise that can fill up an entire truck, or in the case of some carriers, at least more than half of the truck. In this case, you will usually be the only customer with cargo on the truck. This type of transportation for your merchandise has some nice benefits associated with it.

Benefits of Truckload Shipping

This tends to be the most cost effective of the options, so you can save quite a bit on the freight shipping charges compared to utilizing several LTL shipments. In addition, the full truckloads tend to be less likely to be damaged, as they do not have to be handled while they are in transit.

You will find that the transit times can be faster with this type of shipping, as long as there are no problems with the logistics. This is because the goods will typically come straight to you. The LTLs will utilize a hub and spoke model, which can add time to the shipping. It also means more handling of the pallets, which could increase the risk of damage.

Choosing the Right Freight Company

Now that you have a better understanding of the different freight shipping options that can help you to save money, you need to know how to find companies that can get your freight to you.

In some cases, the companies through which you buy your wholesale merchandise will have carriers that they tend to utilize for shipping. However, you may want to ask if you can have your own carrier come to pick up the items for shipping instead. This way, you have control over the company you choose. Talk with the suppliers about their policies and what companies they recommend.

Research the Companies

Before you choose a company, you need to put in the research to learn more about what that each company offers, their reputation, their preferences for shipping, and how long it will usually take to receive your shipments. The Internet is a great place to start your research and to narrow down your selections.

However, once you have a list of potential freight shippers that you could use, be sure to contact them via email or over the phone with any additional questions that you might have.

It might be advantageous to have several different freight shipping companies that you can use to deliver your goods from the sellers to your storage facilities. This is true if you buy different types of merchandise with different destinations.

Freight Preferences and Policies

Companies may have different policies and preferences when it comes to shipping. Some might prefer full truckloads, while others might specialize in LTL shipping. Examine all their policies to make sure the company will work for your needs.

For example, you will want to see if they deliver to your location, or if they need to unload the goods on to another LTL carrier before they reach you. If they do, this could increase your costs, and it is something you will want to avoid if you can.

Also, make sure you know what kind of insurance the freight shipper has and whether it can cover the items that you are shipping. When you are buying full pallets, depending on the types of products you are buying, they could be quite valuable. You need to know that insurance will cover you if something were to happen. Without the proper coverage, it could end up costing you.

What other services does the company offer? Do they unload for you? Do they bring the items inside of the warehouse for you? Keep in mind that even if they do offer those services, they tend to add onto the cost, and you might just want to have your own crew take care of the unloading.

Typical Shipping Time

You want to have your goods to you as quickly as possible, so you need to check the shipping times for the various companies you are considering. You want to find those that can provide you with the items as quickly as possible. Of course, you still need to keep in mind that many things can affect the shipping time, such as the weather. Shippers should be able to provide you with a realistic estimate of how long it will take the merchandise to reach you, so you can plan to have it unloaded and stocked.

Reputation and Reliability

You also need to make sure that you consider the reputation of the company and get a better idea of just how reliable they are. Try to find reviews from other customers who have used the freight shipper. You can learn more about how they handle the items, the quality of their customer service, and the general timeframe for deliveries.

Quick Tips for Reducing Freight Costs

The following are a few closing tips that can help you to save more on your freight shipping costs.

Talk With the Wholesale Supplier or Liquidator

These companies have been in the business for a long time in many cases, and that means that they have developed relationships with carriers, often for parcel, as well as freight. They can often help you to get some great rates through carriers. This could be a faster and easier way to get shipping at a better price.

The companies may allow you to arrange for your own shipping, as well, though. Check to see what types of rates they can offer, and then compare them with the rates that you can get through other carriers you have researched.

One of the things to keep in mind is that the supplier or liquidator will often provide insurance if you go through one of the carriers they work with regularly. However, if you are arranging your own shipments from their facility, you will need to make sure your carrier has the insurance you need.

Get the Freight Off the Truck Yourself

Most of the time, the freight carriers will deliver to you, but they do not do any of the unloading. If this is available through the carrier that you choose, be aware that this will generally cost you quite a bit more.

When you are removing the items from the truck, you will have a limited amount of time to remove the pallets. For example, a full truckload carrier might provide you with two hours before the carrier beings to charge penalties. You need to have the equipment and the manpower ready to go as soon as the truck arrives so you do not have to pay those penalties.

Consolidate Shipments

If you are buying multiple pallets, it will be more cost effective if you consolidate several of your purchases. It makes more sense to have six pallets rather than three or four if you want to reduce your shipping costs. Even though the weight might be the same, your shipping rates are paying for other items, as well, including fuel costs, for example. Consolidation does take a bit more planning, but it is well worth it.

Have the Items Delivered to a Business Location

If the freight carriers must deliver to a residential area, there is a chance that they could charge more because it is often more difficult to navigate trucks down residential streets. Residences can be difficult to find, as well. It is in your best interest to have the items delivered to a business rather than your home address, even if you are running your business out of the home.

No Last-Minute Shipping

Plan your shipping in advance. If you try to arrange for shipping at the last minute, you will generally start to accrue more fees. There is less hassle for everyone involved when you plan your shipping well in advance, and you will have more flexibility. It makes it easier if you want to consolidate shipments, as mentioned, too.

Conclusion

When you are first getting started with buying wholesale merchandise and shipping it to your location, it can be intimidating. Now that you have the information needed to help you determine which type of shipping would be right for your needs, and some tips on how you can save money on your freight costs, it should be quite a bit easier for you to get what you need.

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