Why Offering Free Shipping for Your Business is Easier Than You Think

December 13, 2022 at 10:14 AMJen Deming
Why offering free shipping is easier than you think

As a consumer, the words “free shipping” can create a huge incentive that pushes you to purchase. The expectation for most shoppers is that there will be some sort of free option. However, many retailers are still hesitant to offer free shipping, or stuck on how to make the choice available to consumers while still protecting their bottom line. Let’s take a look at the three most common misconceptions about offering free shipping, and how you can implement strategies to make it work to your business’s advantage.

Misconception #1 – Absorbing shipping costs will cut into my bottom line

If we’re really being honest here, it’s important to note that free shipping isn’t really “free”. Transportation services require time and effort from the carrier, so someone has to pay for it. If it’s not your customer, then it will have to be you. If not addressed correctly, you will have to absorb costs, and this will decrease your margins, overall.

The good news is that offering free shipping to your customer can have a major positive impact on your sales because it’s viewed as a huge value-add. In fact, most consumers are willing to spend up to 30% more online if they know they won’t be paying for shipping. As a top incentive, a further 93% of shoppers say they will take action to qualify for free shipping by adding more items to their order. By offering free shipping, you are going to boost sales and increase your average order spend. In time, the increase in revenue will ideally offset your shipping costs.

Pro tip: Set a minimum amount threshold to qualify for free shipping. 

To make free shipping a viable strategy, it’s probably not smart to offer the service on just any order that is placed. Because shipping costs fluctuate, it can be hard to predict consistently. By setting a minimum order amount, you’ll help ensure that the revenue from the sale will offset the costs of transportation. Determine your minimum order value in advance, and be strategic about communicating that minimum amount during every step of checkout.

Misconception #2 – Building shipping cost into product price will scare customers

Why offering free shipping is easier than you think

To counter the cost of shipping, it may make sense to increase your product price. But this can sound like a scary notion. Raised prices turn off customers and decreases your competitive advantage, right? The truth is, by increasing prices even minimally, while offering a high-value service like free shipping, you will see a boost to your net margin. 49% of all cart abandonment occurs due to sticker shock at the shipping point of checkout, not due to product price. Moderate price increases are generally justified by the customer, as long as fulfillment expectations are being met.

Pro tip: Product pricing should match what your customers are willing to spend and the type of customer you are trying to attract.

When building shipping costs into the price of your products, it’s always important to keep in mind who your target consumer base is. For example, a premium, brand-name shoe retailer can get away with a higher minimum price point than a book seller. Adding the cost of shipping into product price is a legitimate tactic that ensures you're covering your bases, just keep your price points fair and realistic.

Misconception #3 – The demand for free shipping isn’t there for my business 

Unless you’ve been living under a rock, you know that free shipping has pretty much become the industry standard. Thanks to large ecommerce companies like Amazon, consumers expect shipping to be fast, free, or a combination of both. No matter whether you’re selling t-shirts or toolkits, the demand for free shipping is there for any industry. In fact, 66% of consumers want free shipping on all orders, regardless of the total, and 88% expect it when their order exceeds a certain amount. Even more alarming, 61% of shoppers say they are “somewhat likely” to cancel their order if free shipping isn’t offered – that’s a big old ‘yikes’. In short, when the majority of your consumer base expects some type of free shipping, it’s time to stop stalling and decide how to offer the service instead.

Pro tip: Explore ways to “test out” free shipping with offers and promotions.

You don’t have to jump right into a committed strategy right off the rip – dipping your toes in can help determine which tactics work best for you. Consider offering new customers, or rewarding existing ones, with a free shipping promotion. Implement VIP or loyalty programs that allow your customers to sign up and receive free shipping as an incentive. You may even benefit from offering free shipping on select items (perhaps those with a higher price point). By testing out different methods, you can really look at the shipping costs you incur, what your minimum order threshold should be, and refine your strategy from there.

Discounted shipping options help you and your customers

No matter which tactic you decide is best when offering free shipping to your customers, it’s extra important to keep your shipping costs low. You might not know that there are often shipping discounts available through memberships within trade associations, chambers, and industry groups. PartnerShip works with over 130 groups to provide their members with discounts on FedEx services. Contact our team to find out if you qualify.

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4 Questions You Must Ask About Your Freight Broker's Carrier Network

November 9, 2022 at 11:50 AMJen Deming

When it comes to the carriers that can move your freight, "more is better", right? While that may be true for some, the quality of your partner carriers may be more valuable than quantity. If you're looking to add new carriers to the mix by working with a freight broker, make sure to ask the big questions to determine if their network is right for your needs.

Freight Carrier Closures for the 2022 Holiday Season

November 3, 2022 at 1:47 PMJen Deming
2022 Freight Carrier Closures

As we near the end of 2022, it’s crucial to plan ahead for shipping through the holiday season.  Freight demand is starting to show signs of decreasing but continues to strain available carrier capacity. As a result, transit times are still a bit unpredictable. 

Planning your shipping schedule during the final months of the year will be extra important. To avoid extra stress, take note of when your carriers will be closed during the holidays. 

Freight carrier closures

  • Saia LTL Freight – will be closed November 24 - 25, December 23 - 26, and January 2.
  • YRC Freight – will be closed November 24 – 25, December 24 – 26, 31, and January 2.
  • XPO Logistics – will be closed November 24 – 25, December 23 – 26, and January 2.
  • ArcBest – will be closed November 24 – 25, December 24 – 25.
  • R+L Carriers – will be closed November 24 - 25, December 24 - 26, and January 2
  • Estes – will be closed November 24 – 25, December 23 – 26, and January 2.
  • Dayton Freight – will be closed November 24 – 25, December 23 – 26, and January 2.
  • Pitt Ohio – will be closed November 24 – 25, December 23 – 26, and January 2.
  • AAA Cooper – will be closed November 24 – 25, December 23 – 26, and January 2.
  • TForce Freight – will be closed November 24 – 25, December 23 – 26, and January 2.

Avoid being left out in the cold this holiday season

Freight shipping during peak shipping months can be extra-challenging, but you’re not alone. With over 30 years of holiday seasons under our belt, the freight experts at PartnerShip can help you ship smarter. 

Please note that our office will be closed November 25-26, December 26, and January 2 so that we can celebrate with our families. Happy Holidays!

Which Shipping Strategy is Right for Your Retail Business?

October 26, 2022 at 9:50 AMJen Deming

Choosing the right shipping strategy can help increase profitability, conversion, and repeat business from your customers. But, how do you know which one is right for you? We take a look at the three most common small package shipping strategies for retailers, so you can decide what makes sense for your business.

FedEx and UPS Holiday Shipping Deadlines for 2022

October 21, 2022 at 9:10 AMLeah Palnik
2021 Holiday Shipping Deadlines for FedEx and UPS

As you prepare your store for the influx of orders that come with the holiday season, you’re going to want to keep an eye on the shipping deadlines. Both FedEx and UPS have announced the last dates you can ship your orders and make it in time for a Christmas delivery.

It’s important to note these deadlines because demand surges this time of year. The carriers' networks are already strained, and it’s only going to get worse the closer we get to the holidays. To keep your customers happy and set the right expectations, we recommend clearly communicating the shipping cutoff dates and adding in extra days in case of delays.

FedEx has published a complete visual list of the last days to ship. Here are some highlights for domestic shipments:

  • December 8 for FedEx Ground Economy
  • December 14 for FedEx Ground and FedEx Home Delivery
  • December 20 for FedEx Express Saver
  • December 21 for FedEx 2Day and 2Day AM
  • December 22 for FO, PO, SO, and Extra Hours
  • December 23 for FedEx Same Day

UPS has also created a list of the last days to ship for Christmas delivery. Unfortunately, one thing that is missing is a specific cutoff date for Ground shipments. You will need to get a quote on the UPS website instead. For domestic UPS air shipments, the dates are as follows:

  • December 20 for UPS 3 Day Select
  • December 21 for UPS 2nd Day Air
  • December 22 for UPS Next Day Air services

It’s also important to note that service guarantees are currently suspended for both FedEx and UPS ground services. It's also suspended for select air/express services. The main takeaway? You’ll want to encourage your customers to order early and do what you can to add in extra days when setting delivery expectations.

If you're looking for any additional guidance or need a way to lower your small package costs, PartnerShip can help. Contact our team today.

How To Best Protect Your Freight From Freezing

October 13, 2022 at 11:13 AMJen Deming
How to Protect Your Freight From Freezing

Winter is coming, and that means large parts of the nation will be impacted by cold, freezing temperatures, and adverse weather conditions. Certain types of freight, like beverages, electronics, and pharmaceuticals, are especially at-risk for damage during the winter months. The good news is that there are ways to protect your freight from freezing, which can help avoid both damages and cost challenges during the winter months. But you must be vigilant and follow three essential strategies.

Strategy 1 – Ensure your prep and packaging can handle cold temperatures   

Protecting your freight starts with you, the shipper, and proper packaging and preparation. To make sure that your freight kicks off its journey safely, make sure to use the following tactics to avoid issues:

  • Know your product: Different types of products have varying temperature minimums, so first and foremost, you should determine what temperature ranges are safest for your freight.
  • Group like products together: When palletizing or crating your loads, make sure similar product types (and temperature ranges) are grouped together for maximum safety.
  • Use insulated packaging: When boxing up your product, make sure items are packed with insulating materials, like foam core, cotton or paper fiber, or insulated box liners.
  • Wrap packed pallets: Insulated pallet covers, or specialty cargo blankets can help trap heat inside, making sure your products stay a warm and consistent temperature.
  • Track temperature variations: Many shippers opt to use smart thermometers that can help track shipment temperature and detect any shifts that may impact the product.
  • Load quickly and efficiently: Your loading team doesn’t have the luxury of time during the winter. Load carrier trucks quickly to minimize exposure to low temperatures and other weather risks like rain and snow.

Strategy 2 – Become familiar with specialized temp-control equipment options

To be completely honest, the equipment you choose will make or break your freight. Most carriers, especially large national carriers like TForce Freight and YRC Freight, offer temp-controlled services and have specialized trucks in their fleet that can manage freeze-protection. 'Reefer' (refrigerated) trucks aren't just used to haul frozen products during the summer. They can also be used to maintain a constant temperature for at-risk freight during the colder months. 

Reefer freight

When arranging your temp-sensitive freight, it’s important to contact your preferred carrier and learn about what options they offer. Communicate your shipment’s needs, starting with product type and what the required temperature range must be. Carriers can help secure a reefer truck, offer heated truck options, or even may provide alternative heating solutions, like portable or built-in trailer heating units. 

After communicating with the carrier and deciding which temperature-control options are right for you, it’s important to note temperature requirements on your bill-of-lading. As with most special requests, this not only gives the carrier direction on your needs, but it can also be used as a point of reference for liability should something go wrong during transit. 

Keep in mind, that temperature-control services are considered accessorials, and will incur charges and fees that may vary by carrier. Building those fees into your shipping costs is best done early on in the transportation process.

Strategy 3 – Stay on top of delays and weather conditions

Not every part of the United States will be impacted by inclement winter weather – but most of it will be. Snow, rain, ice, and even wind can create major issues for truckers during the winter season. It’s super important to research the path that your shipment will be taking. Don’t let your load fall prey to the common “out of sight, out of mind” misconceptions some shippers succumb to.

Data Graphic

When shipping LTL, your load won’t travel from point A to point B in one straight shot. The further your load travels, the more varied its path will be. If your shipment enters any of the high-risk zones like the Midwest, New England, or Central U.S., it’s extra crucial you stay on top of weather updates for your shipping lane. When the weather is bad enough, it’s in your best interest to delay shipping until it clears, if you can swing it. Road closures and rerouting may be hard to predict, so it’s always smart to build extra time into your transit.

Shipping over the weekend is always tricky, even in the best-case weather scenarios. But in the colder months, you will likely encounter extra challenges. Because weekends are considered “dead freight” time, your loads will sit and be exposed. Your best bet is to ship early in the week and avoid weekends all together, but if you have to, make sure you communicate with the carrier about keeping the temperature-control running while idle.

Because freight transit can be so unpredictable during cold weather, always keep in mind that you should be keeping alternate shipping options open. If you have a larger freight shipment, a dedicated truck may be a viable alternative. While pricey, keeping room in the budget for emergency scenarios like weather delays is a smart plan of action.

Shipping freight safely in winter is possible

Winter weather freight shipping can be tricky, but it’s not out of the question. You will need to strategize even more than you’re used to, and take every precaution necessary to avoid slip-ups. Keep in mind that now is not the time to take any unnecessary risks just in an effort to save a buck. PartnerShip can help you keep on top of cold weather shipping issues, including communicating with carriers and staying on budget. If you’re going to be shipping this winter, make sure to contact our freight experts so your freight is delivered safely. 

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What Manufacturers Want: We Talk Shipping Tips With an Industry Insider

October 7, 2022 at 12:07 PMJen Deming
Manufacturing Shipping Tips

Manufacturers are kind of a big deal. Take a look around, and you’ll notice that the products, supplies, equipment, and tools they produce are everywhere. Lately, conversations about manufacturing are shifting, as the industry itself is evolving to meet new expectations and demands. In order to gain some insider perspective, we reached out to our industry contacts and association partners. Holly at Jatco Machine &Tool Company, Inc., NTMA member and PartnerShip customer, was generous enough to provide some expert insight.

  • What specific shipping challenges do manufacturers face? What do they do to combat those issues?
    Holly: Some specific shipping challenges would be the balance between cost and delivery times, items arriving on time and undamaged, difficulty of creating/placing shipment. Some things we do to combat those issues are utilizing PartnerShip and packaging our items up ridiculously well. Partnership offers us savings by combining shipments, and they make it so easy to create a shipment. They literally do it all for you!

  • What is the most important factor related to shipping for manufacturers and why?
    Holly: It’s hard to choose one. Obviously, safety goes without saying and should just be a standard for everyone. Other than that, it would be delivery times. Sending an item to a subcontractor can become a process. Two days to ship freight, maybe two or three days for them to do the work, and then another two days back is a full 7 days eating into our deadline. We’d like to get freight to a subcontractor overnight and vice versa. And honestly, two days is not terrible!

  • How can PartnerShip make life easier for manufacturing businesses? 
    Holly: I think that they really do all that they can to be efficient and easy to work with. I enjoy calling and having someone fill everything out correctly, search for rates, and give me the best options.

  • What do we, and others in the industry, need to know about manufacturers and how to best address their shipping needs?
    Holly: We have one-two shipments with Partnership per month. I’m sure others have more or varying amounts. It’s nice to know that we can receive great rates based on merely being a partner verses number of times we ship. We are a small business doing big things all over the country. Shipping will always be a part of that. Partnership makes that aspect as easy as possible.

Manufacturing Shipping TipsHolly brought up some important points about the distinct challenges that many manufacturers face, like damage concerns and on-time freight delivery. If these are some key concerns you share,  here are some resources that can help you strategize and ship your loads successfully.

At PartnerShip, we celebrate manufacturers as an industrious, pivotal sector of our economy. Through constant growth and adaptation, manufacturing businesses continue to be inspiring, and we are excited to help your businesses play such a cutting-edge part of the future. If you’re interested in learning how PartnerShip can help you and your manufacturing business ship smarter, contact our team.


Meet the People Who Help You Ship Smarter: Dillon

October 5, 2022 at 9:23 AMLeah Palnik

Above all else, at PartnerShip we value the relationships with our customers and partners. Keeping them happy and ensuring their freight is managed properly is the backbone of what we do. Our Association Program Manager, Dillon, is a prime example of that. He is the main point of contact for our college bookstore associations and is the go-to resource for many of our customers - a role that is as unique as he is.

Meet Dillon

About Dillon
If you get the chance to speak with Dillon, be sure to congratulate him - he recently got engaged to his longtime girlfriend! They have lived together in their beachfront apartment in California for 6 years and enjoy everything the oceanside life offers. When he’s not working, you can find him enjoying a nice meal with his fiancé, playing beach volleyball, or biking down the beach path.

Expert advice
Dillon has earned his chops as a Certified Transportation Broker (CTB) and sits on the board for the California Association of College Stores (CACS). Between that and his 7 years of experience at PartnerShip, he’s in a solid position to help our customers ship smarter. We asked him to share some advice.

  • What industry trends are you seeing that you think shippers should be aware of?
    The most obvious industry trend that I can identify is transit times being affected by the demand on the system. You can easily avoid this issue by taking extra time to communicate with your broker, specifically on how early you should order your product and what your realistic expectation for delivery should be.

  • If you could give customers one piece of advice for smart shipping, what would it be?
    My major piece of advice for customers is to communicate with your logistics broker. Many problems can be avoided or instantly fixed when a customer and their broker communicate to understand any shipping issues that may arise.

Dillon

Taking it a step further
Communication is key in Dillon’s eyes and for good reason. A quality freight broker can be your advocate when issues arise with carriers, you’re dealing with deadlines, or have unique needs. But that open dialogue is essential for your broker to do their job right. Curious about the benefits of working with a broker? We’ve got you covered:

Dillon also hits the nail on the head when it comes to challenges with transit times. If you want to understand what’s happening in the freight industry and how to tackle the resulting issues, there are a couple resources you might find useful:

Without question, having someone like Dillon on your side to manage your freight is essential these days. If you’re interested in finding out more how our team can help, contact us today

3 Blunders That Can Sabotage Your Blind Freight Shipment

September 22, 2022 at 1:17 PMJen Deming
3 Blunders That Can Sabotage Your Blind Freight Shipments Title Graphic

LTL freight shipments come in many forms, but one of the most confusing types you may have heard of is blind freight shipping. In blind freight shipping, the identity of the shipper, receiver, or both parties is hidden. It’s most commonly used when a business is shipping orders directly from the manufacturer to the customer.

If you think that sounds complicated, that’s because it is, but there are distinct advantages to taking this route when arranging a freight shipment. The most common reason a business would choose to do this is to keep other parties within your supply chain confidential from your customers, such as manufacturers or distributors. The idea is that they would then be deterred from going directly to those sources for a product instead of your business. Sounds good, right? Well, the challenge is that managing blind freight shipments can get pretty dicey, and most missteps fall within three major areas.

  1. Blind Freight Paperwork Mistakes

    Properly preparing and distributing freight shipping paperwork is a stumbling block for many shippers, on even the most standard loads. In blind shipping, up to three separate BOLs must be prepared, depending on which parties aren’t being disclosed. In double-blind shipping, you will have one for the shipper, one for the receiver, and a conventional BOL for the carrier’s use. All three of the BOLs should include accurate shipment details, including weight, dimensions, and product description. 

    They should also include accurate freight classes so that the load is billed properly. Each of them will, however, have slight but crucial differences to ensure your blind freight stays “blind”. A shipper’s BOL will have all of the usual info, but also include PO# or other identifying information. The receiver may be omitted in order to keep the customer anonymous. Likewise, on the receiver/customer’s BOL, the supplier’s identifying info and address will be concealed. The carrier BOL must contain all relevant information that is typically used on the BOL, including both shipping parties full information.Blind Freight Perks Graphic

    Failing to prepare BOLs properly, or handing them off to the incorrect party, can result in major headaches. A shipment can be misrouted or lost, billed incorrectly, or the blind freight’s purpose may even be defeated by accidentally disclosing parties to one another. The best thing you can do when managing a blind freight shipment is confirm that the carrier has all of the accurate details when setting up the shipment, including the true addresses of both shipping parties.

  2. Not Accounting for the Additional Costs Associated With Blind Freight 

    It’s always smart to assume that if a shipment has any extra services or needs “special” attention, a carrier is going to add some extra fees for their trouble. Due to blind freight shipping complexity, there are extra costs associated with this service. Every carrier charges different amounts, and we’ve seen them anywhere from $50-$150. Check your carrier’s website to determine costs. As seen here with YRC, cost is stated clearly, as well as instructions to prepare a blind freight shipment per their standards. Research these fees and make sure you’re building them into your budget to avoid surprises.

    On top of regular fees for the service, you have to remember that any errors you make when arranging a blind freight load can end up costing you even more. For example, if you handed off the wrong BOL, and the address is incorrect, rerouting and redelivery fees may apply. This can really inflate your final bill, as well as create on-time delivery complications and stress with your customer. 

  3. Not Being Aware of Blind Freight Restrictions

    Just as we see with blind freight costs, requirements and restrictions on these types of shipments can vary with each carrier. Some carriers have a pretty relaxed approach, while many need additional paperwork or approval beforehand. It’s always important to notify your carrier that a shipment is blind at the start of the process so that you can iron out details. 

    Many carriers, such as YRC, require a form or document to be prepared online before pick-up, so that an “official” notice is on file for the request. Carriers may also require paperwork to protect their interests in the case of blind shipping. There may also be a waiver to sign, notifying you that while they will do everything in their power to honor the request, if something goes wrong, it’s not on them. Some may even include stipulations, such as a note that re-delivery will not be attempted due to issues associated with paperwork errors. It really just depends on the shipper, so be sure to visit carrier websites and search for policies on blind freight shipping. If there isn't information made front and center, always download the latest rules tariff and read the fine print. It's not fun, but it may help you avoid mistakes.

Blind Freight StepsEnsuring You Avoid Any Blind Shipment Blunders 

While blind freight shipping can sound totally overwhelming, the opportunity to use this type of freight service should be considered for anyone working as a “middleman” between customers and suppliers. A great freight broker can help manage all of the details, including paperwork and communication between all parties to ensure accuracy. With the right assistance, you can be sure that your blind freight shipment will go smoothly. If you think your business might benefit from blind freight shipping, get in contact with a PartnerShip freight expert to learn more.

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Meet the People Who Help You Ship Smarter: Amanda

August 30, 2022 at 9:35 AMLeah Palnik

If you’ve ever wanted to know more about the people who help keep your freight moving, you’re in the right place. It takes creative problem solving and years of experience to expertly navigate the world of shipping. At PartnerShip, we’re proud of our team members who use their expertise to help our customers ship smarter. One person who fits that bill is Amanda Bixler.

Meet Amanda

Get to know Amanda
As the Customer Service Manager, Amanda helps her team and our customers ship smarter by staying current with issues in the industry and sharing what she learns. Assisting her team with handling difficult customer situations, creating shipment quotes, scheduling shipments, and running shipping analyses are all in a day’s work for her.

Outside of work
You can’t keep Amanda away from the water. When she’s not kayaking, you can find her walking the beaches to collect Lake Erie beach glass for making jewelry. She also loves spending time with her family. She’s happily married to her husband of 10 years, Trevor. She also has two daughters - Autumn and Alexis, and two Grandbabies - Lillyana and Xavier.

Some shipping wisdom
Amanda has been with PartnerShip for 7 years, and her team is often the first call when a shipping issue arises. As a Certified Transportation Broker (CTB) she is well versed in what to look out for and how to keep your shipments running smoothly. We asked her for her thoughts on a couple of key questions.

  • What industry trends are you seeing that you think shippers should be aware of?
    The demand for shipping continues to increase daily. There is more freight than there are drivers to move it. The freight is often being put on the rail resulting in longer transit times. I proactively inform my customers of these potential issues so there aren't any surprises.

  • If you could give customers one piece of advice for smart shipping, what would it be?
    I often tell our customers to package their freight in a manner in which it can be identified easily in the event it is lost/damaged.

The demand for shipping continues to increase daily. There is more freight than there are drivers to move it.

How to apply these tips to your freight
Amanda’s insights touch on one of the most pressing issues in LTL freight shipping today - longer, more unpredictable transit times. This has become an unfortunate reality of the business. While much of that is out of your control, the best thing you can do is plan ahead and work with a quality broker so you have an advocate in your corner. If transit times have been a pain point for you recently, we have some resources you may be interested in:

Another reality of the business that Amanda mentions is dealing with missing and damaged freight. If a carrier loses or damages your freight while in transit, it can feel like so much is out of your control. However, you can take some precautionary measures and educate yourself ahead of time on the actions to take if you need to file a claim. To get you started, check out these resources:

The benefits of working with a knowledgeable team are undeniable. If you could use a freight expert on your side, contact us today.