Previously, shipping large packages was limited to only a few retailers or products. However, things have changed today. Purchasing large items online has become quite common today, exponentially increasing the demand for large package shipping. According to a report by Future Market Research, the global large package shipping market is expected to generate revenue of $ 42.76 billion with a 5% CAGR by the end of 2032.
Nevertheless, the challenge is that shipping large items is not cheap, and the business must consider multiple factors to ensure they profit while delivering large items to the clients.
So, what is the buzz around large package shipping, what are the challenges businesses face while delivering a large item, and how can companies improve their profit while shipping large packages? Let’s have a look.
What is Large Package Shipping?
As the name states, large package shipping is a product weighing more than 500 kg and needing to be transported from one location to another. A large shipment can include heavy machinery, containers of medical supplies, automobiles, or industrial materials.
Challenges Faced by Companies While Shipping Large Packages
Large package shipping can be quite challenging for companies. Let’s look at some of the roadblocks that businesses face:
Expensive Resource Implies Higher Shipping Cost
When a business ships large shipments, it requires resources such as vehicles, drivers, loaders, and other tools to ensure that the delivery is made on time. However, all these resources cost money, and the larger the shipment size, the more expensive the resources. Moreover, in cases where a consignment needs special care, i.e., a need for a particular vehicle or drivers with specific skills, the shipping gets even costlier.
Larger Packages Needs More Time to Deliver
There is no other way to put this, but delivering an oversized shipment takes time and much energy. This means that the delivery vehicle will be on-site for a longer duration than that for a smaller load.
The Need for the Technology
To ship large cargo, 3PL service providers require high-level coordination with the client. The carrier must be aware of the delivery window and assured that the client would be available to receive the consignment. Otherwise, the business has to bear the additional cost as the delivery vehicle must wait hours to unload the shipment. Therefore, it is crucial that the business is equipped with technology such as appointment-based deliveries that can help them schedule their deliveries and prevent them from bearing the additional cost.
Risk of Failed Deliveries
As mentioned earlier, due to longer loading time and demand for large vehicles for shipping an oversized shipment, transit time is expected to be longer than usual in bulk deliveries. As a result, the client may cancel the order, or delivery can not be made on time. Consequently increasing the number of failed delivery attempts in oversized shipping.
Tips to Make Large Package Shipping More Profitable
Since the challenges associated with large package shipping have been listed, let’s look at some tips that businesses can leverage to ensure more profit while making large package shipping:
Identify the Correct Client
To be successful in b2b logistics, it is essential for the companies they identify the correct client for business. Businesses must know precisely who their audiences are and what type of products will benefit them. This can significantly make large parcel shipping profitable for B2B businesses.
Use LTL Freight Service
If a business doesn’t have parcels that can occupy the entire truck, in such scenarios, the businesses are advised to use less truck load or LTL freight services provided by the shipping carriers. By using this service, B2B companies can reduce shipping costs and improve their profitability in the business.
Choose Tech-enabled 3PL Service Provider
Technology has penetrated the core of every business vertical, and B2B logistics is no different. With the help of tech-enabled platforms, companies can have clear transparency of the large package’s status. They can easily monitor and manage the order making B2B logistics less complex.
Provide Flexibility to the Client
Not every client demands immediate large package shipping. However, they ask for flexibility in terms of delivery as they have to deal with multiple vehicles at a time. Providing this flexibility to the client can help the companies to strengthen business-client relationships. Moreover, b2b companies can also offer flexibility to the client in terms of mode of delivery such as air, water, rail, or road. With these options, businesses can cater to the client, effectively improving customer satisfaction.
Evaluate Packaging Cost
Packaging is among the most important and costliest processes in large package shipping. To ensure that businesses can profit while shipping large packages, they must choose the right products. They need to analyze the packaging cost as different materials have different properties and usage. They must select the best material that suits their shipments and is cost-effective.
Conclusion
Large package shipping is a complex and cost-intensive process. To ensure that businesses can make their large packaging shipping more critical, they must analyze the distance of delivery, type of vehicle involved, and type of consignment that needs to be shipped. However, 3PL B2B logistics service providers such as Shiprocket Cargo can help businesses make large package shipping more profitable with their services such as appointment-based deliveries, LTL, and tech-enabled dashboard.
