Delivery Companies & Couriers for your business
If you have an online business that sends your product to your customers, you would be searching for a delivery company or courier company you can partner with.
You would be looking to find a company that can provide a solution to your problem and not the other way around. Hard to come by, I know!
I found that these sorts of relationships were critical to my online business. Finding the right balance between competitive rates and good service is challenging but achievable. One will serve your bottom line, and the other your customer’s satisfaction. Both are equally important to the success of your business.
Not all businesses are the same, and different courier companies and postal services can provide various products and services. More importantly, having more than one company you work with as part of your risk management is highly beneficial. You don’t want to be scrambling at the last minute to set up accounts and negotiate rates when something goes wrong. Plan well and spread your eggs out. This will give you peace of mind and greater negotiating power.
We can all remember the scenes in our postal network during Covid. Packages and parcels on the express run, with a 1-day delivery guaranteed, were showing up 14 to 20 days later. Who can ever forget the 3+ day suspension that Australia Post implemented so they could clear out the backlog? A similar picture was painted in the USA by USPS running suspensions on specific destinations and citing impacts related to Covid-19. Businesses that had other options during that time thrived. They were one step ahead of their competition, delivering their parcels in record times. My business was one of them.
So, where do you start? Quite simply, you begin by planning and identifying your needs.
Who are your customers & where are they based?
It’s essential to identify where your customers are located. This will also answer the question of if you need International Shipping. If yes, it would be beneficial to determine your top countries. Delivery companies generally offer discounts on lanes or zones but may also provide more significant discounts on specific countries if you can show a high volume.
Import Taxes
If you ship internationally, ensure you are aware of any import taxes, customs, and brokerage fees your customer may be subjected to. You can either prepay this through your delivery company or have your customer pay for it when they receive their parcel. That’s a business decision you will need to make. Communicate this clearly to your customer to avoid bad reviews, angry customers, disputes/chargebacks and additional charges to send your parcel back. (This area can become quite problematic, so you must address this in the clearest of terms)
GST / VAT Registration for low-valued goods
If you ship internationally, you may have to register for VAT or GST in certain countries if you send over a certain threshold. New Zealand is one of those countries and states that “If your total supplies to New Zealand consumers exceed or are likely to exceed NZ$60,000 in a 12 month period, you will need to register for, collect and return New Zealand GST on those sales”
Remote Area Surcharge
Ensure you read your proposal’s fine print, such as the remote area surcharge. This means that when your parcel enters the destination country, you may not be aware that the address it’s going to is a remote area or not within the zoning that the courier delivers. Where you expect to pay a $20 delivery charge from Australia to New Zealand, you could be slapped with an additional $30 for a remote area surcharge.
Some other charges you need to look out for are: Extended area surcharge, large package surcharge, address correction, and signature required.
Ensure you negotiate these with your account manager, as these can be waived if your shipping volume is high.
Does your courier company cover rural or remote areas?
Some courier companies do not cover all areas. You must ask the question. In such cases, you would need to revert to your local postal service that does.
Fuel Surcharge
This additional charge is added to your rate and is generally not negotiable. It is crucial, however, that you are aware of these charges. The percentage rate of your fuel surcharge will naturally change every month. I have seen it range from 8% to 22%. There may be times that you will also see an additional emergency surcharge or a security fee – this was common throughout covid.
It is essential to check your invoicing and ensure you are correctly charged for your parcels.
Volumetric Weight / Dimensional Weight
The weight and dimensions of your parcel will significantly impact your end price. Boxes generally take up more room, even if they are light in weight, and therefore you will be charged more per parcel. It’s worth negotiating a dimensional waiver with delivery companies. I have done this successfully in the past, both domestically and internationally.
You may also find that your customer is willing to pay less to have their product delivered in a flat-rate satchel rather than a box which could see them pay triple the price. It’s always good to gain insight through customer feedback.
Packaging
Most courier companies will offer free packaging with their service. This is important to factor into your overall comparison. For example, you could be paying more with a courier company vs a postal service on their rates, but when you factor in your packaging, you may be surprised that the courier company is coming in cheaper.
How big are your parcels?
Some delivery companies will not collect bulky, oversized, or heavy parcels. Check to ensure your needs are met.
If you need the occasional service of large, heavy, or bulky goods, it may be beneficial to sign up with a third party who can get that service coupled with reasonable rates for you.
Trans Direct benefited my business when I had the odd large and bulky order to send out. Through them, I received competitive rates on the service I needed.
Whom do they partner with?
Ensure you know the delivery company’s partner once your parcel leaves your shores. I can tell you from experience that one of the significant downfalls of Australia Post International was that they had to deal with and use the postal companies of each country they sent to. This meant that once the parcel left Australia, it was no longer under their control, and they became reliant on the other side to pick up the slack. I remember sending a donation to India with Australia Post. Once it reached its destination, it was handed over to India Post and sat there for three months before it was delivered.
Similarly, if you send parcels through Royal Mail in the United Kingdom or USPS in the USA, once it leaves their shores, it gets handed over to the local postal system of the destination country. Some postal systems can be highly problematic to deal with.
It’s one of the reasons I was forced to leave and take my international parcels elsewhere. I needed a seamless experience and received this with both UPS and DHL.
Speed
The time it takes from when customers order online to when they receive their parcel is critical in today’s eCommerce world. Some companies (such as amazon & the iconic) offer same-day domestic delivery. It’s the difference between you and your competitor. Consumers want their product – yesterday!
Yes, they think that when they complete their payment, somehow, their product will fly through their computer screen and land on their lap!
It would be best if you were on top of your game. You need speed and tracking that gives them minute-by-minute information!
Customer Service
Their customer service must be top-notch. You do not want to spend hours on hold waiting for someone to locate your customer’s parcel.
Couriers Please, were quite exceptional at locating delayed or missing parcels. One call and our account manager was on the phone with the driver, and any delivery issues were resolved instantly. Giving feedback to your customer as quickly as possible is essential.
DHL proactively will call if something has gone wrong with the delivery and will keep calling until the parcel has been delivered. This is the type of service that you want.
Look out for drivers who will collect your parcels. Always be polite and treat them with the same respect you wish to be treated. They play a significant role in your parcels getting to the end user. You may be running late one day and need them to hang around an extra 15 minutes, or you may want them to leave and return. Small favours can go a long way! Be smart, not right, in your dealings with them.
What features do you need?
Check to see what features each company has on offer. These include comprehensive or simple tracking (which can make all the difference between your customer constantly contacting you – time is money – or being appeased by a complete and comprehensive tracking system).
If you require a signature on delivery, ensure this is part of your deal and check that it is included in the rate.
Some courier companies, such as Couriers Please and DHL, offer a lower rate if no signature is required and the parcel can be left in a safe place.
When you send out thousands of parcels a year, even $1 off is a massive saving for a business.
Would you like the delivery company to send an email or SMS to your customer with their tracking details and delivery time? I believe this is a massive bonus to any business. It just takes the extra work off and assures the customer.
Integration
Integrating your online store’s or CMS’s back end is highly beneficial and will take an enormous cost off labour work. Ensure that the delivery company you choose to work with has their technology up to scratch and can integrate with your systems. It would be best if you worked effectively and efficiently in this area. It’s the difference between sending your parcels out on the same day or with delays.
Pick UP
Ensure the courier or delivery company you select offers a daily pick-up service. This is generally free, although I have recently seen some companies charge for this service. Put on your negotiating skills to get this service complimentary. Take note of the time that you wish to request this service. Afternoons always worked best for me, as I could get in every parcel for a same-day dispatch.
Insurance
It is worth checking any insurance that comes with the rates you receive. There is a minimum that is generally at no additional cost. At the very least, you should be getting a refund on your postage/delivery cost should your parcel go missing. Courier companies such as UPS and DHL have a very low rate of losing parcels. It is worth asking your delivery company what their lost parcel rate is.
Rates / Prices
Last but not least, negotiate your rates. You should never accept the first proposal that lands on your desk. There is always room for negotiations, especially in such a competitive market. If you have the volume, you have the power to negotiate. Postage prices/rates can affect your bottom line. If you send 10,000 parcels a year, a $1 difference between companies can put 10K back in your pocket. But remember, they must be reputable and meet most of the above criteria because if they are not up to scratch, you will lose much more through customer experience. Most customers will blame your business for the delivery company’s shortcomings, which can have terrible consequences for your business. Choose carefully.
So, what is the best package delivery company?
With all the above factors coming into play and with all the checks and balances in place, the following delivery companies are the ones that I worked with well.
My Top 2 International Delivery Companies
DHL
UPS
My Top 3 Domestic & Interstate Delivery Companies
DHL
Couriers Please
Australia Post (postal service)
My Top 2 Domestic Large/Bulky Parcel Delivery Companies
TNT
Couriers Please
Conclusion
When looking to partner with a delivery company, the rates should not be the only factor that is important to your business. Overall, search for a seamless experience with few problems. Cheap could end up costing you more.
