It's no secret that eCommerce businesses rely on shipping to get their products to their customers. Captain Obvious reporting for duty! And while shipping is a necessary part of doing business, it can also be a major expense. That's why it's important to optimize your shipments to ensure that you're getting the best possible value for your money.
What you're paying UPS, FedEx or ANY OTHER CARRIER shouldn't be considered "just the cost of doing business." Here's some truth: most businesses overpay for shipping because they aren't optimizing their shipments for cost or delivery speed.
Let's break it down....
What does it mean to "optimize shipments?"
There are a few ways you can optimize your shipments: for delivery speed or for cost. And that usually means selecting the right service level, AKA Air or Ground. The best option for you will depend on your business and your customers' needs. You can also optimize your UPS and/or FedEx contract to get the best possible pricing, customized to your business needs.
How do I optimize shipments for cost?
If you're focused on cost, consider shipping your products via ground shipping instead of air shipping. Ground shipping is typically less expensive than air shipping, so it can help you save money on your shipping costs. Of course, ground shipping will take longer to reach your delivery destinations. If you're selling time-sensitive items, like food or flowers, this may not be the best option for you. But if you're selling non-perishable items, ground shipping can be a great way to save money.
How do I optimize shipments for speed?
If you're focused on delivery speed, consider shipping your products via air shipping instead of ground shipping. Air shipping is typically more expensive than ground shipping, but it will reach your delivery destinations quicker. This option is best for businesses that sell time-sensitive items, like food or flowers. If you're selling non-perishable items, though, air shipping may not be necessary and could end up costing you more money than ground shipping.
Can Ground be faster than Air?
You need to know the details of your shipments in order to save money. Here's a secret that UPS and FedEx with NEVER share with you: Sometimes Ground is as fast, or even faster than Air. And it's always cheaper.
To give you an idea how big of a difference there can be in cost, let's say we are shipping a 5 lb. package from Denver to Atlanta. The cost for Air would be $22.93 while the cost for Ground would only be $8.76 - A Savings of 61%! Not only is ground cheaper, in this scenario it would also arrive 1 day sooner.
How do I optimize shipments for my business needs?
To get the best value for your money, it's important to compare the cost and delivery time of both shipping options before making a decision. By taking the time to do this, you can be sure that you're choosing the best shipping option for your business and your customers.
Where can I get the information I need to optimize my shipments?
Lojistic makes it really easy with the Air vs Ground analytic. Air vs Ground analyzes all of your outbound packages and provides you with the data you need to make shipping decisions that save you time and money.
You can see a breakdown of the service levels used, the number of packages shipped per service level and the total cost per service level. You'll also see the number of shipments that you could've sent Ground that would've arrived as fast or faster than Air. Lojistic automatically quantifies your savings potential too. You can use this information to save a ton of money, and keep your customers happy at the same time.
We know that shipping costs are one of the biggest reasons why online shoppers abandon their carts. But at the same time, consumers expect their "stuff" to arrive fast. They really want the best of both worlds: fast and free, or at the very least, really cheap.
You can use Lojistic for free to optimize all your shipments. We've built our platform to be the ultimate DIY shipping cost savings tool. You'll have all the information you could ever need to control and reduce your shipping costs.
Can someone help me optimize my shipments?
But if you're looking for something other than DIY savings and you're interested in learning more about how Lojistic can help you optimize your shipments, contact us today. Let us know what your ultimate shipping goals are: getting packages to your customers FASTER and for the best possible price OR reducing shipping costs knowing that delivery speeds might be slower.
You can also schedule a time for us to contact you, whenever it's convenient. We'll be happy to answer any questions you have and show you how we can help.
Looking for other ways to save? Check out this post: Send Costs Packing.