December 17, 2019
Do you remember what your holiday decorations looked like in your first “grown-up” home? Chances are they’ve multiplied a lot since then, growing from an easily stored collection of tchotchkes to a full-fledged horde of holiday cheer that probably needs its own zip code.
A similar thing has happened to eCommerce fulfillment costs. Each year they’ve gotten just a little bit bigger, absorbing more of your company’s logistics budget – and eroding a greater percentage of its profit margin.
In fact, according to a 2018 study issued by Armstrong & Associates, they’ve experienced an annual compounded growth rate of 15% since 2018 and are expected to increase another 18.8% by this time next year.
Given all of the developments in recent years, it’s not hard to see why. Among other things, the country’s main parcel carriers have routinely raised their rates – and added a whole new, expensive wrinkle with dimensional pricing. Plus, studies frequently show that even though consumers want increasingly faster delivery times they’re not willing to pay for 100% of the expedited delivery expense.
In light of this, what’s a shipper like you to do?
Thankfully Verst has a few ideas for ways you can effectively offset these increasing expenses, and no, it doesn’t involve winning the lottery.
We could go on. But you’ve got holiday orders to fill – and we’ve got a lot of peak season shipments to get out the door. So let’s call this particular story a wrap.
Best of luck as your deck your own halls this season!
P.S. Don’t let your spouse shop on Etsy or EBay, unless you want to have one or two additional boxes of holiday decorations to put away.
Read other blog posts from this 12-part series entitled "The 12 Days of Peak Season":
Slow and steady may have won the race for the tortoise. But it certainly won’t win peak season business for your company, particularly not if you’re talking about parcel shipping. Fulfillment...
The English language is full of words that shoppers hate to hear. The expression, “Your shipment is delayed” is definitely one of them – especially during the holidays, when consumers absolutely,...