Shipping is a critical component of supply chain logistics for e-commerce stores. e-tailers find it increasingly important to optimize shipping as it significantly impacts the customer experience, repeat purchasing, brand loyalty and profitability.
Shipping compliance—or non-compliance—can make or break your supply chain. When shipping compliance is achieved, ongoing rules and requirements for rating, labeling and manifest reporting are not an issue. Non-compliance is a major exposure adding time, cost and risk.
1 Rate Changes
Staying abreast of shipping expenses and rate changes is crucial, since these costs directly impact consumer purchasing decisions, not to mention bottom line profitability. Annual increases, the infamous residential surcharge, complex formulas for dimensional (DIM) weight charges, add additional costs for priority deliveries and more. For shipping vendors and policies, one size does not fit all.
With the right shipping software tools, retailers can rate shop for services, including ground services with next-day delivery—at a much lower cost. Retailers can also manage how or if they choose to pass on all or part of the shipping cost. What’s more, businesses are analyzing how to leverage parcel shipping rates, including predictive shipping analytics that monitor shipping costs and operations.
Today, consumers choose when and by what method orders are delivered; e-tailers are charged with meeting cost expectations and providing shipping options.