Shipping Optimization for the New Year
Are you looking into shipping optimization for the new year? We’ve got an insider’s POV from automation expert, Christine Ridgely, Partner Manager at 71lbs.
Who has the time to monitor what they spend on shipping? You should be focused on fulfilling the orders! While you likely researched shipping optimization and how you can obtain the lowest shipping costs, you may not be optimizing your overall spend. Shipping costs are typically the 3rd largest line item on the Profit and Loss statement. For most e-commerce merchants, a minimum of 10% of their sales is spent on shipping costs. Given the number of dollars spent by your business to ship products to your customers, monitoring your shipments is important to your bottom line.
Your business cannot rely on customer feedback alone to identify if a package does not arrive on time. Customers may or may not communicate to you if a package hits their doorstep late. In either case, you have invested in a service that did not deliver.
FedEx or UPS offer service guarantees that if broken, result in a refund for the cost of the shipment. Hold your shipping carrier accountable and optimize your overall spend. As a business who may offer free or discounted shipping to meet customer expectations, every dollar dedicated to shipping makes a difference.
Capitalizing on the savings potential does require time…of course. The claims process is not made easy, even when a service failure occurs. Shipping experts can help you monitor and identify the refunds that you are entitled to and provide insight into your shipping spend and trends. Make a New Year’s resolution to really get to know what you are spending on shipping!
Do you have more questions about shipping optimization? Please let us know in the comments below!
Guest author Christine Ridgely, Partner Manager at 71lbs. 71lbs’ automation process and team identify and claim your due refunds, allowing you to focus on your business and not waste valuable resources. All found refunds are credited directly to your FedEx and/or UPS account.No start-up or monthly maintenance fee is necessary.