It’s no secret that parcel shipping represents the largest part of eCommerce and direct selling companies’ fulfillment cost, possibly as much as 75%. And thanks to parcel carriers annual rate increases, that price tag is getting higher all the time.
It’s time to share a breaking story about parcel delivery. And we mean that literally.
According to various studies, anywhere from 7% to 11% of customers’ online orders arrive broken or damaged – a scenario that’s even more likely if products are large (when delivery damages climb to 21%). And when that happens, it can cost your company big.
Parcel carriers have begun alerting customers that they will be raising costs or adding a peak season surcharge during the holidays. This article will review what we know about the size and timing of these increases, as well as things online sellers can do to lessen the cost impact on you and your customers.
Oh you better watch out if you’re an eTailer, because according to research from Voxware, 76% of shoppers are planning to purchase more than half of their holiday gifts online this year.
When you combine that estimate with the exponential growth that eCommerce has already experienced due to COVID-19, you’re looking at unprecedented levels of holiday eCommerce fulfillment activity.
According to a recent Wall Street Journal story on parcel shipping rates, the big U.S. parcel carriers, especially UPS and FedEx, are firmly in the driver’s seat on pricing and, “have started hitting some large shippers with price increases in the double-digit percent range.”
But if you’re a large B2C shipper, you already knew that, didn’t you? In fact, you’re probably already feeling the financial pain of these rising
If you’re looking for more economical shipping options, don’t be afraid to think outside the box.
More accurately, don’t be afraid to think beyond it – because in many cases the key to significant eCommerce fulfillment savings may not require the use of an actual box at all.
Internet Retailer recently polled 100 E-retailers about their fulfillment networks. According to the survey report, about half of those businesses deliver orders nationally from a single shipping fulfillment center.
Not only does this strategy limit delivery speed and increase parcel shipping costs, it creates huge risk of a wholesale business interruption.
It’s no secret that parcel shipping represents the largest part of eCommerce and direct selling companies’ fulfillment costs, possibly as much as 75%. While some companies see a significant area of expense, others see a huge potential for savings – which is why Amware has just released 10 Ways To Reduce Parcel Shipping Costs, a new eBook that tackles the subject head-on.
This holiday season blog is our gift to budget-conscious B2C shippers who need to control fulfillment expenses.
The subject: reducing parcel shipping costs.
How do you do it? Think P – A – R – C – E – L.
It may only be October, but before you know it, holidays will be upon us. You’ll soon be seeing a lot more of all of your favorite parcel shipping carriers.
In light of that, we thought we’d share a few facts and figures about some of the exciting things each of these players has been up to since the last peak shopping season rolled around – with a little what’s-in-it-for-you commentary thrown in for good measure. Amware