When looking at overall order fulfillment costs, such as receiving, storage, pick and pack, and shipping, the shipping cost is usually the variable that changes the most and incurs the greatest cost.
Controlling shipping costs can grow product sales and improve your customer relationships. Last year, 54% of online shoppers said they had abandoned shopping carts due to the high cost of shipping.
One key step to controlling shipping cost is to align with a fulfilment partner who is committed to helping your business minimize this expense. This can be done when the fulfillment company has long-term transportation experience and established vendor relationships. Most fulfillment companies can use their warehouse volume to lower shipping costs, but not all are willing to pass those savings on to their fulfillment customers.
Here is how we approach both reducing our customers’ shipping costs and enhancing the shipping service we can provide.
- When we meet with potential shipping customers, we evaluate all current carrier contracts. We use our 25 years of international and domestic shipping expertise to understand the fine print and pros and cons to all contracts.
- When it makes financial and logistical sense, customer continues to use their own shipping contracts.
- When it’s deemed valuable to the customer, we recommend using our shipping rates and carrier relationships to save money and time
- We implement these blended vendors and contracts with our warehouse management software, making the process occur seamlessly.
- Because of our extensive international shipping experience, if a fulfillment customer is not already taking international orders, we can also walk them through the steps of accepting international orders. Our team understands export regulations and can open your business up to the 95% of commerce that occurs outside the US.
This may seem like an intuitive process to go through, but in our experience, it can be overlooked by fulfillment companies without transportation experience. Some warehouses won’t blend using customer rates and their own as it makes sense. Their technology either won’t allow it or they don’t want to for their own business reasons.
Whether you are considering Shipping and Handling of Texas or another fulfillment company, here are a few questions to ask your potential partner:
- Do you have a long 3PL history? 3PL’s are in the business of offering shipping services that reduce cost and improve service.
- What carriers do you have relationships with?
- Will you let me use my own rates when it makes sense? Can you help me evaluate how to best use my rates?
- Beyond national carriers, do you have LTL, FTL, and local or regional relationships that can help cut costs as needed?
- Can you help my business go international when the time is right?
Finding a fulfillment partner that will work with you as a true strategic partner allows you to focus on successfully and cost effectively growing your business.