Things to Consider When Choosing Package Forwarding Service

Things to Consider When Choosing Package Forwarding Service

According to Statista, the freight forwarding market was sized at around 161 billion euros in 2022 and is expected to increase to 207 billion euros by 2025.

This means that there are many newcomers to the market every year, making it more and more challenging for business owners to find the best package forwarding services for their business needs. 

In our day and age, consumers expect their orders not only to be of the highest quality but also to arrive in the shortest possible time.

As such, the parcel forwarding service you decide to collaborate with will affect your customers’ satisfaction directly, so you need to do your research thoroughly and find the best option available, both in terms of services offered and shipping costs.

In this article, you will find more information about the essential factors to consider when choosing a package forwarding service provider for your business.

Apart from reliable tracking services and pricing, you need to check their certifications and credentials, industry experience, delivery time, worldwide shipping availability, volume capacity, and types of products they ship.

Continue reading to learn everything you need to know to make an informed decision.

Price

The price is one of the most important factors to consider when choosing a package forwarding service provider.

The price will depend on various factors, including the number of shipments you make or receive, the cost of each shipment, the shipping distance and type, the weight and size of each shipment, and the company’s shipping method or carrier. 

Make sure to get all the information about the costs involved, including shipping fees, insurance charges, customs duties, taxes, and transportation fees.

As you are looking for package forwarding services, you should also check their terms and conditions in regards to shipping charges, as some companies do not ship bulky or heavy packages.

Delivery Time

Another key factor to consider when choosing a parcel forwarding service provider is delivery time.

Desired delivery time range is often associated with your business needs and how quickly your customers expect their orders. 

For example, if you are a company that sells clothing, you need to get your products in your customers’ hands as soon as possible to keep up with the latest fashion trends.

If you are a food, cosmetics, or health and beauty product brand, you need to get your products to your customers’ hands quickly so that they can use the products before their expiry date. 

Similarly, if you are shipping time-sensitive documents or other important items that need to be delivered on time, you must find a parcel forwarding service provider with a guaranteed delivery time.

It is also best to choose a parcel forwarding service provider with enhanced delivery services like same-day delivery, two-day delivery, or rush delivery services.

Shipment Volume Capacity

Look for a company that has experience sending out packages in the volume capacity you will be shipping in at one time.

For example, if you want to ship hundreds or thousands of packages by air freight, it is best to choose a parcel forwarding service provider with experience with this kind of shipment. 

However, if you only have a few shipments per month, you do not need to spend a fortune on a parcel forwarding service provider that has a large shipment volume capacity.

There are many providers that charge per shipment, so it is best to choose a company that fits your business needs.

Shipping Methods and Carriers

Make sure to check the shipping method and carriers available when choosing a parcel forwarding service provider. Different types of parcels need to be shipped by specific types of carriers and using various shipping methods.

For example, parcels containing liquids cannot be shipped by air freight and must be shipped by sea freight instead; on the other hand, parcels containing electronics can usually only be shipped by air freight.

In addition, some parcel forwarders may charge extra fees for shipping certain goods, such as perishables or electronic goods.

Before signing an agreement with a parcel forwarding service provider, make sure that you have all the information about the shipping method and carriers available for your goods.

Customs Duties and Tax Fees

A company’s customs duties and tax fees may also affect your decision when choosing a parcel forwarding service provider because each country has its own rules for different types of goods. 

You should always look for a parcel forwarding service provider who has experience sending and receiving goods in your target countries as they will be able to provide accurate information about import duties and tax laws in your target countries, as well as help you clear your goods through customs smoothly. 

Another factor to consider when choosing a parcel forwarding service provider is whether they provide customs clearance services or not.

Not all of them have it in their core business, and it might become a considerable inconvenience to you over time.

Ensure to check all this before signing an agreement with them; otherwise, you may have to go through customs clearance yourself or hire another company to help clear your goods through customs after they arrive at their warehouse, which will generate more costs.

Experience and Reputation

You should also take into account the company’s experience and reputation in the industry.

It is better to work with an experienced parcel forwarding service provider than a new one because they will have more knowledge about the industry and provide better information about the related factors that may affect your business directly or indirectly. 

Likewise, another critical factor to consider is the company’s reputation in your industry because this will affect your customers’ perception of your business.

Ask around and research online about the experiences of other businesses with the company you are interested in working with.

This way, you can count that this will be a long-term partnership rather than just a short-term contractual engagement.

Insurance Coverage

Another important thing is the insurance coverage parcel forwarding service provider offers.

They should offer insurance coverage for your shipments, particularly if you are shipping fragile or high-value items.

Ask whether they provide free insurance coverage or not and if they have excess insurance coverage options, and what their fees are.

Some parcel forwarders also offer extra insurance coverage options like theft and loss or third-party liability insurance coverage, and more.

Your business may need to take out other additional insurance products for the sake of your customers’ protection, which is why it is important to make sure that you are fully protected.

Company Certifications and Credentials

Finally, it is always better to work with a parcel forwarding service provider who has relevant certifications and credentials in your industry; for example, if you are a company that sells baby products, you should choose a parcel forwarding service provider who has the FCA certification or the GOV.UK accreditation. 

Some companies also have ISO certifications or certifications like GS1, which can help them provide better and safer services to their clients.

Apart from these, service providers can also apply for certificates from famous brands like Amazon and eBay, ensuring unproblematic shipment through these platforms.

You should always check whether the company you are interested in working with has any relevant certifications and credentials before signing an agreement with them.

Final Thoughts

Choosing the best parcel forwarding service provider for your business is not easy, especially if you are new to the industry or do not know much about such services.

The factors we listed above will help you narrow down your choices and make the process of finding the best parcel forwarding service provider for your company easier.

Apart from these factors, you can also look into things specific to your niche or values and the mission statement of your brand.

For example, if you want your parcel forwarding service provider to be environmentally friendly, you can look for one that has green packaging or eco-friendly logistics certifications.

If you work with the right parcel forwarding service provider, you will have access to their worldwide shipping network, which will help you reach new customers in many other countries.

In addition, you will be able to save money on your shipping expenses because your goods will be shipped by sea, air, or courier services rather than by road freight.

Finally, your goods will arrive at their destination more quickly and efficiently, thus increasing customer satisfaction. Choose wisely!