We’ve previously covered some of the hidden costs to shipping that businesses may not be aware of. However, we’ve only just scratched the surface and there are many more costs that may not be obvious to new shippers.

1. Currency fluctuations and hidden fees

When you’re shipping internationally, couriers may bill in foreign currencies such as USD or EUR, instead of GBP. This means that the banks or payment providers covering these transactions may not only charge conversion fees, but could be using exchange rates that are not as good as the market rate.

While this may not seem like a big deal, if you’re shipping to foreign countries often, these charges can add up and cause your costs to rise. For example, a shipment that was quoted at £100, could end up costing over £110 once all of the conversion fees and differences in exchange rates are factored in.

If your business has a tight pricing model, then costs like these can eat into profits without you realising it until it’s too late, but there are ways to avoid these nasty surprises.

You can try choosing services that charge in GBP instead of having to convert currencies where possible, or keeping an eye on exchange rates so that you can work fluctuations into your pricing. Or, if you’re concerned that you might be impacted by currency conversion fees, why not book through our platform?

We offer transparent pricing to reduce any surprises after shipping, and our customer service team can help with any enquiries you might have.

2. Insurance and Declared Value Fees

When you book a shipment via a courier, it’s likely that only basic liability coverage is included. This can often be as little as £20-£50 per parcel, regardless of how much the shipped item is actually worth.

This means that if you’re shipping high value items such as jewellery or electronics, this standard coverage isn’t enough. For example, your parcel might be worth £400, but under basic liability coverage, your courier is only obligated to cover £50. That leaves your business to make up the shortfall of £350.

The best thing to do to avoid this is to plan for the worst case scenario (your parcel being lost or damaged). In some cases that might look like upgrading the insurance coverage via your courier or reviewing third-party options.

To avoid being caught out by these fees, don’t be tempted to save money by underdeclaring the price of an item. Make sure that insurance costs for high-value items are factored into your prices, and consider working with a parcel broker like us for extra peace of mind.

3. Returns and Reverse Logistics

Returned items are all but unavoidable for retailing businesses. Whether the customer is returning an item because it doesn’t fit, is damaged, or they simply don’t like it in person, simple returns are an important part of good customer service.

However, reverse logistics (getting the parcel sent back from its destination to its originating location) can be more expensive than the initial shipping fee.

There are plenty of reasons for this including the fact that these shipments aren’t eligible for bulk courier rates, repeated customs and taxes, and additional paperwork.

Luckily, it’s simpler than you might think to tackle these costs. Providing customers with pre-negotiated return labels means that you can avoid paying for one off return shipments and can potentially benefit from better rates.

On top of this, our fantastic customer service team have helped with pretty much any query you can think of. Get in touch with them for help finding the most cost-effective options for return shipments both domestically and internationally.

At ParcelBroker, our goal is to make parcel deliveries as simple as possible. Our dedicated team can help you to save up to 60% on your shipping costs and - as the highest rated comparison site on Trustpilot - you can be sure you’re in safe hands.