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QuickBox Fulfillment Jun 25, 2022 4 min read

Postage Shopping: 5 Key Considerations

ECommerce continues to build on the rapid growth it experienced during the COVID-19 pandemic. The way people shop has changed how we do business forever. And consumer expectations have increased as well. With people expecting packages dropped off at their doorstep often within a day or two, postage shopping becomes a key concern for online retailers. Increasing shipping costs can quickly turn a thriving business upside-down.

Needless to say, postage shopping is a vital part of keeping costs down while keeping customers happy. Choosing the right parcel carrier to partner with isn’t just about time-to-home or cost savings. It’s also about ensuring the package is delivered in good condition. In other words, your parcel carrier plays an important role in providing good customer service.

In addition, the top reason people abandon carts is due to excessive extra costs. For example, they’re happy to pay for their purchase, but once they get to the cart, the shipping, taxes, and additional fees add up to too much. So, they decide to forgo the purchase to perhaps choose a different online retailer, shop in-store, or give up on the item altogether.

Another common reason people abandon carts is that the total cost or delivery time is kept hidden. Not knowing in advance how quickly they will receive a package and the real cost of their purchase can easily prevent customers from completing their transaction.

Key Considerations for Postage Optimization:

There are multiple shipping strategies to give your customers what they need to move forward with their purchase while keeping on top of your profit margins. For example, you can offer free shipping, charge exact shipping costs, or provide a simple flat fee for all shipping of any size order.

Before settling on a shipping strategy and carrier, though, it is important to consider the following:

  1. Know your margins, which includes knowing the cost (down to the penny) to ship the order and the profit you make after shipping.

  2. Adjust the pricing of your products to account for shipping, especially if you are offering free shipping or a flat shipping rate, no matter the order size.

  3. Increase order value to account for shipping costs. For example, only offer free shipping for orders over $100 or for repeated subscription orders, which increases the lifetime value of the customer.

  4. Optimize your packaging. By using smaller, lighter packaging, while ensuring your products will arrive safely, you can often save significantly on postage. Working with your carrier or 3PL on best practices can help save on costs while protecting your product.

  5. Negotiate the best rates. Shipping is one of the biggest expenses for up to half of all eCommerce retailers. Getting competitive shipping rates by negotiating with carriers and changing carriers as needed can bring big cost savings.

    When you partner with QuickBox, our team is available to consult on all of your fulfillment-optimization opportunities, including postage optimization, and negotiate the best shipping rates for you. We work with multiple carriers and offer varying service levels to help you find the right option for your business. So, you don’t need to figure it out all alone.

    Ready to get started? Contact QuickBox today.