How Parcel BI Exposes Shipping Charge Corrections

How Parcel BI Exposes Shipping Charge Corrections | Cleveland, Ohio

A shipping charge correction is when the costs for a package to be delivered are adjusted (typically increased) after the package was processed. These corrections can cost your business a lot of money, and they can be adjusted for many reasons.

The important thing to understand is that corrections are changing your expected costs for shipping vs. your actual costs. If you are operating under the assumption that what you think it will cost to ship a package is the actual cost, then you are operating under incomplete or incorrect information. This leads to lost margin.

What Can Cause a Shipping Correction?

Some common examples of charge corrections include: 

  • The weight of a package was entered wrong which can also cause the cost to go up
  • The dimensional weight (DIM) is weight based on the volume (height x width x length) of the package, not the actual weight. The Shipper will charge you whichever is higher.
  • Residential and commercial shipping charges vary just because you’re shipping to a business entity, the address still might be classified as a residential charge as opposed to commercial shipping.
  • Over Maximum Weight and Size Charges can cost as much as an additional $850 per package if a package exceeds the carriers maximum thresholds.

The companies who are shipping your parcels will make the necessary corrections and adjust the bill after the fact. It is likely that a shipper could think they are sending a package out that is going to cost $15 to ship, but when it gets delivered, it cost $150, or $1,000 due to the corrections.

How Can Parcel BI Help Prevent Shipping Correction Charges?

At Parcel BI, we provide you with the tools to view all of your company's corrections conveniently through your invoices so you can see where you were charged more than you expected.

The video contains an example of corrections that cost a shipper over $1,000!  The customer entered the weight as 21 pounds, but it actually got billed at 90 pounds, and the package exceeded the carrier’s maximum size limit. 

With Parcel BI, you can see the dimensions of this package. It is a very long, narrow package, very light in reality. However, it's getting billed at a higher weight because it's oversized in length. This oversized length accrues an additional charge of $850!

This customer thought this package was going to cost $20 to ship and it cost over $1,000 because of all these corrections. When you multiply that by the number of packages that really affects your company.

The Correction Audit Fee

Not only was this customer charge way more than they anticipated, but now they have to pay additional audit fees. If the shipping company finds a certain amount of corrections, they're going to assess an audit fee, $1 per package every package in the shipment.

What makes this fee harder to see is that it is billed as a single line item, and not associated with a specific package, so it often goes unnoticed, unchallenged, and uncorrected.

Even if a package wasn't corrected, it could be assessed a dollar fee for being audited because five packages out of 1,000 had a correction. If you are getting corrected often, there could be an extra $1 cost per package per day that you are not seeing. 

Parcel BI not only exposes the data, but we show you where in your processes, you can make adjustments allowing you to save money in the long run, be more proactive, and eliminate unnecessary costs.

If you want to stop leaking money from unnecessary shipping fees due to corrections and audits, contact us at Parcel BI today. We offer a free demo so you can see how Parcel BI will work for you!

How Parcel BI Exposes Shipping Charge Corrections | Cleveland, Ohio

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