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    Home»Business»5 Mistakes to Avoid When Managing Parcel Payments

    5 Mistakes to Avoid When Managing Parcel Payments

    Trevor James.cBy Trevor James.cMay 8, 2023No Comments4 Mins Read
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    Parcel payment management is an essential part of any business that ships products. As businesses grow, it can be difficult to manage the increasing volume of parcels, and mistakes can become more common. These mistakes end up costing businesses a lot of extra money and can increase their overall costs. Avoiding mistakes helps them to cut costs and pass along some of the savings to their customers. In this blog post, we will discuss five common mistakes to avoid when managing parcel payments and how to implement best practices to prevent them.

    Mistake 1: Not having a system in place

    One of the most common mistakes companies make when managing parcel payments is not having a system in place. Without a system, it is easy for payments to get lost, and it can be challenging to keep track of which parcels have been paid for and which have not. Additionally, without a system, businesses may not be able to generate reports or analytics that are necessary to track their financials in relation to shipping products. Additionally, understanding how the different carrier exclusions, like the FedEx shipment exception, can impact your rates as well. You’ll want to be informed of how these can impact parcel payments.

    To avoid this mistake, businesses need to implement a system for managing parcel payments. There are several software platforms available that can help track payments and provide real-time updates. These systems can automate the payment process, so invoices are sent out automatically, and payments can be tracked and recorded with ease. Furthermore, they can also generate reports and analytics to provide a more comprehensive view of the business’s financial situation.

    Mistake 2: Failing to reconcile payments

    Another common mistake that businesses make when managing parcel payments is failing to reconcile payments. Reconciling payments is the process of comparing the amount that was charged for a parcel against the actual payment received. This process is essential to ensure that all payments have been accounted for and to identify any discrepancies. Without reconciling payments, businesses may not know if they are overcharging or undercharging for their services.

    One way to avoid this mistake is to set up a process for reconciling payments regularly. This process should include reviewing invoices, checking payment records, and comparing the two to identify any differences. If there are any inconsistencies, businesses should investigate the issue and take steps to correct it.

    Mistake 3: Not verifying parcel information

    Verifying parcel information is essential to ensure that the correct amount is being charged for each parcel. This includes verifying the weight, dimensions, and destination of each parcel. Not verifying parcel information can lead to overcharging or undercharging, which can result in financial losses for the company. It can also lead to delays in delivery if the parcel is not properly classified or if the carrier is unable to deliver it.

    It’s best to double-check all parcel information before paying for shipping. This can be done by using a software platform that automatically verifies the parcel information or manually reviewing each parcel’s details. If there are any differences in the parcel information, they should be investigated and corrected before the parcel is charged.

    Mistake 4: Ignoring carrier invoices

    Another common mistake that businesses make when managing parcel payments is ignoring carrier invoices. Carrier invoices are the bills that businesses receive from their carriers for the shipping services provided. These invoices contain important information about the parcels shipped. These details can include weight, dimensions, and insurance rates.  Ignoring carrier invoices can lead to overcharges or undercharges, which can result in financial losses for the company. It can also lead to delays in delivery if there are any discrepancies that are not addressed.

    Review carrier invoices regularly instead of just placing them in a file. This process should include comparing the carrier’s invoice to the parcel information and the payment records to ensure that the correct amount has been charged for each parcel. Investigate all inconsistencies and ask for refunds or credits when you are owed money.

    Mistake 5: Ignoring the carrier pricing changes

    Carrier rates can change frequently, and it is important to keep up with these changes to ensure that the correct amount is being charged for each parcel. Ignoring rate changes can result in overcharging or undercharging, which can lead to financial losses for your company. Make sure to stay informed about carrier rate changes and update your system regularly to reflect these changes.

    Conclusion

    Managing parcel payments can be a complex task, but avoiding these five common mistakes can make the process much smoother. By implementing a system for managing parcel payments, reconciling payments, verifying parcel information, reviewing carrier invoices, and staying up-to-date with carrier rate changes, you can avoid financial losses and ensure that your business runs smoothly.

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