For ecommerce merchants, especially smaller ones, optimizing shipping costs is crucial for profitability and customer satisfaction. This episode provides actionable strategies to identify overpaying, correct common shipping mistakes, and leverage technology for smarter shipping decisions, directly impacting your bottom line and customer experience.
Key takeaways
Actively audit carrier invoices for billing adjustments and errors, as 1-3% of net spend is often lost to inaccurate billing. Don't assume carrier invoices are always correct.
Utilize carrier transit time maps and consider backend programming with routing guidelines to accurately determine ground vs. air shipping needs. This prevents overpaying for expedited air services when ground delivery meets the required timeframe.
Invest in a multi-carrier manifesting system to compare costs across different providers (UPS, FedEx, USPS hybrids like Streamlight or DHL Global Mail) for every shipment. This automates the selection of the most cost-effective solution based on package characteristics and delivery requirements.
Avoid common mistakes like using the wrong product (e.g., opting for expensive air freight when ground is sufficient and guaranteed) or the wrong carrier for specific routes. Explore hybrid products that partner with USPS for last-mile delivery to reduce costs.
Educate yourself on dimensional weight billing. If you are consistently getting charged for dimensional weight after initially entering actual weight, you are likely overpaying and miscalculating your profit margins on products.
Strategies and ideas to reduce shipping expense appeal to most every ecommerce merchant. Our guest today is a shipping and logistics expert, helping merchants reduce their shipping costs. He’s John Haber, founder and CEO of Spend Management Experts, a shipping and logistics consulting firm.
Frequently asked about this episode
What does this episode say about carrier management?
Actively audit carrier invoices for billing adjustments and errors, as 1-3% of net spend is often lost to inaccurate billing. Don't assume carrier invoices are always correct.
What does this episode say about logistics management?
Utilize carrier transit time maps and consider backend programming with routing guidelines to accurately determine ground vs. air shipping needs. This prevents overpaying for expedited air services when ground delivery meets the required timeframe.
What does this episode say about profitability?
Invest in a multi-carrier manifesting system to compare costs across different providers (UPS, FedEx, USPS hybrids like Streamlight or DHL Global Mail) for every shipment. This automates the selection of the most cost-effective solution based on package characteristics and delivery requirements.
What does this episode say about shipping cost optimization?
Avoid common mistakes like using the wrong product (e.g., opting for expensive air freight when ground is sufficient and guaranteed) or the wrong carrier for specific routes. Explore hybrid products that partner with USPS for last-mile delivery to reduce costs.
What does this episode say about carrier management?
Educate yourself on dimensional weight billing. If you are consistently getting charged for dimensional weight after initially entering actual weight, you are likely overpaying and miscalculating your profit margins on products.
