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You may be paying more for shipping orders than you realize. How many incorrect order go out every day? Those orders cost your business money. Reducing the amount of extra shipping fees can really help boost your profit and improve your company’s reputation. When you’re shipping out many orders each day it’s easy to overlook how quickly those shipping charges are adding up. And when you’ve paid to ship an incorrect order you must pay another shipping charge to ship the correct item while also sending the customer a return shipping label to return the incorrect item.

Even though customers do pay a shipping charge, many businesses offer the customers a flat rate shipping fee that doesn’t quite cover the cost of shipping the item, especially if the customer lives in a state far away from the distribution center or warehouse. As shipping prices increase, many customers start to balk at paying the entire shipping cost so businesses charge a flat rate shipping fee and end up paying some of the shipping cost themselves. Shipping prices are always rising, which means your orders need to be as accurate as possible so that you don’t end up paying more for shipping than you need to pay.

Research has shown that customers will not buy an item if they feel the shipping price is too high, even if that’s the actual cost to ship the item. Perception matters and if a customer has the perception that the shipping cost is higher than it should be then they will not buy the item rather than pay a shipping fee that they think is too high.

automated inventory management system - reduct shipping and inventory costs

How an Automated Inventory Management System Reduces Shipping Costs Caused by Incorrect Orders

That’s why businesses need to be aware of how much it can cost them to make mistakes and ship the wrong items to customers. If your business is absorbing part of the shipping cost for every item and you have to resend items to customers, that means your business is absorbing a lot of shipping fees. An automated inventory management system can cut down on those incorrect order shipments and save you money in shipping fees.

In order to keep the shipping cost at a point the customer feels comfortable with and continue to make a profit eliminating those incorrect orders is essential. That’s the only way to make sure that you don’t end up cutting into your profit when you are selling items. Switching to an automated inventory management system is the best way to control your shipping costs while making sure that you’re not wasting product.

When you use an automated inventory management system to streamline the order fulfillment process, you are lowering the chances that human error will mistakenly send a customer the wrong item. At the same time, you are saving money and making sure that the order is shipped correctly to the customer. The integrated automated systems in place will make sure that the order fulfillment process is streamlined and efficient so that your customers will get the right item quickly the first time.

Making the order process faster and more accurate will save you money and give customers the type of seamless experience that they have been craving.

Automated Inventory Management for SAP Business One and Macola Software

An automated inventory management system can help reduce shipping costs caused by incorrect orders. Contact us today to learn more about improving your order accuracy using an inventory management system.