In 2024, postal and courier pick-up and delivery service charges in the UK have seen significant increases, driven by changes from key providers.
On Sunday, USP will introduce a 10 per cent increase in charges for large parcels and additional handling fees. Parcelforce has also increased its rates driven by rising fuel costs and labour market volatility, impacting businesses reliant on affordable shipping options.
That’s why it’s more important than ever for SMEs to ensure they’re packing and shipping their stock cost-effectively.
Seemingly insignificant mistakes, such as incorrectly labelling or sending one large package exceeding the shipping dimension, compared to separate smaller boxes, could see business owners charged 150 per cent more than the original cost.
(Steve Zammit)
Interparcel CEO Steve Zammit says, “Mistakes that lead to surcharges can significantly increase the original shipping price by up to 150 per cent.”
“A courier charge might initially be £10, but something done during the manufacturing process could add a surcharge for special or manual handling ranging from £12 to £70, depending on the weight and any special handling requirements.”
Below, Mr Zammit lists seven packing mistakes that every business owner should avoid, from the manufacturer stage through to business expansion.
Shipping Expert’s 7 Most Costly Packing Mistakes
1) Neglecting dimensional and weight limits
Ignoring courier limits on parcel dimensions and weight can lead to high surcharges or rejection of shipments.
Mr Zammit explains, “Many products sourced overseas, from countries like China, Vietnam, Taiwan, or Hong Kong, need to be packaged correctly upon manufacture to avoid repackaging later.”
“Couriers often have weight limits, such as 20-22 kilograms per parcel. For items over 32 kilograms, it typically includes palletisation and forklift handling, which adds further complications and costs. One way to avoid these issues is by considering whether products can be broken down into smaller packages at the sourcing stage.”
“When placing overseas orders, it’s important to ask questions upfront about the dimensions and weight of the products. Some couriers impose surcharges for items over certain lengths—105 centimetres is often the maximum before surcharges apply, though this varies by courier.”
“In some cases, the product can be unscrewed or packed more compactly to avoid these surcharges.”
2) Overlooking the importance of proper packaging during the research phase
The most common mistake SMEs make, especially if they are not manufacturing the product themselves, is conducting thorough research in the sourcing phase.
(Image credit: Interparcel)
Mr Zammit says, “There’s a fine balance between ensuring the item is packaged adequately for the best customer experience and keeping shipping costs in check. Businesses need to get this right from the start, and consider the type of product being sold—whether it’s a variety of items or a single product—will help guide the right shipping decisions and avoid surcharges.”
3) Excluding packaging and product tagging at the manufacturing stage
Businesses that wait until products reach the shipping stage to package or tag items end up with labour-intensive processes, increasing cost and time.
Mr Zammit adds, “Do as much of the packaging and tagging at the manufacturing stage rather than leaving it until the shipping process, which can become labour-intensive once the products arrive.”
“The package design is also critical, as well as understanding what people are buying and what quantities. Different product groups such as fashion, home décor and 4×4 camping gear, come with different considerations.”
4) Packing items that require special handling
Failing to account for surcharges based on dimensions, weight and special handling requirements can significantly inflate shipping costs.
Mr Zammit says, “If one of the dimensions—length, width, or height—falls outside the automation limits of some courier companies, the item may need to be handled manually. In some cases, an item that’s too thin or too light, like one under 250 grams, might not be suitable for automated handling and will incur a manual handling surcharge.”
5) Uneven weight distribution
Improper weight distribution within parcels can cause tipping, manual handling and additional fees.
Mr Zammit says, “Uneven weight distribution may result in the parcel being manually handled and incurring a surcharge. For unusually shaped items, it’s often best to have a custom box made. Although this might cost more initially, it ensures the item is packaged correctly, reducing the likelihood of surcharges, damage, or returns.”
6) Not addressing volumetric weight charges
SMEs often neglect the impact of volumetric weight, which couriers use to charge based on size rather than actual weight.
Mr Zammit adds, “One key factor is the difference between actual weight and volumetric weight. If you’re not using a flat-rate package, couriers will charge you based on the higher of two figures.”
“For example, a one-kilogram item in a large box may have a volumetric weight of five kilograms, and you’ll be charged based on that higher figure.”
7) Failing to reassess packing and shipping processes during key business changes
Shipping costs and handling requirements can change with product variations, necessitating a review of fulfilment strategies.
Mr Zammit adds, “It’s always wise to reassess what you’re doing with packaging and shipping costs at key times of the year. For example, if you’re adding new product lines to your eCommerce store, consider how that impacts your shipping. If customers buy multiple items, the shipping characteristics can change.”
