With tough economic times and increasing customer expectations for free shipping, how can retailers keep offering customers free (or competitive) shipping rates without sinking ship?
One way to run a tighter ship is to work with several carriers, and select the lowest priced carrier based on real-time, per parcel lookup to take advantage of fluctuating rates and competition. Rate shopping software like Anyrate or Logicor coupled with warehouse management systems can determine prices based on parcel dimension, weight, destination and delivery date.
Another approach is to nurture a relationship with one carrier which may cost more on paper but has its advantages. Good carrier relations help you negotiate better rates and even receive better service, which helps you satisfy your customers better. Price isn’t the bottom line when it comes to shipping if speed, reliability and customer service are compromised. You could end up paying far more in returned items that were damaged in transit, and lose long time customers to one bad experience.
What’s your experience? Has rate shopping saved you thousands? Has fidelity paid off?
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The majority of our shipments are with UPS (some with USPS) and the advantages are that once we reached a certain volume, we received more discounts/incentives and also qualified for their CTP program which gave us credit towards technology purchases. It allowed us to get another computer system for our warehouse, including label printer at no cost to us. There are also unmarked boxes that are available to higher volume shippers that are free, which also help with packaging costs! Make sure to develop a relationship with your rep, it can help out in emergencies and they are eager to help solve your challenges.
We have chosen to stick with 1 carrier.
For now, we ship exclusively via FedEx. We get: great rates (domestic and international), FedEx branded shipping boxes for free, a computer system and label printer supplied by FedEx, and a fun, strong relationship with our rep.
Quality of service is quick and the amount of damages/losses is very low.
Looking into adding USPS/Endicia soon so that we can reach military APO/FPO and PO Boxes.
A good relationship with your rep can definitely help out in emergencies.
No wonder the USPS is advertising more on TV lately. They’re really trying to take some share from the big boys of parcel with their fixed rate one-size boxes. Yay for competition!