Time to review contracts with your shipping companies

Over the past year many e-commerce businesses have seen a change, one way or another, in their volumes. While the news tends to report that online businesses are doing particularly well, it does all depend on what you sell. There are certain products, such as evening wear and products for the events and leisure industry which have not been selling so well during lockdown.

Whichever sector you come under, it’s probably time to review your shipping prices.

Shipping companies tend to offer the best rates to businesses that have the largest volumes. If your business has thrived during lockdown then the chances are you’ll be in a position to try and negotiate a better deal. Check your contract as it will probably include a ‘trading profile’ where they predict how many parcels you are going to send on a weekly or monthly basis. If you are beating this then it’s probably time to speak with your account manager.

If lockdown has been less kind to your business and your volumes temporarily dropped, you may find that you aren’t meeting your contractual minimum volumes. Shipping companies do routinely review trading profiles and may decide to put your account on a standard tariff rather than the competitive deal you signed up to. This is still happening even though we have been through unusual times. Contact your account manager and make them aware that this change was temporary and don’t be afraid to shop around if you need to.

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