Fulfillment Costs Explained: Part 1

Order fulfillment is a large and complex part of the ecommerce industry. As such, managing it can take a lot of time and resources. But by outsourcing the process, you’ll be able to focus better on running your business. As you look for a third-party fulfillment partner, you’ll probably notice that this convenience can come with multiple types of fees. Everyone’s pricing structure is different. That said, here is a list of common fees you’re likely to encounter when looking for a fulfillment partner. More...

Determining the Shipping Costs for Your Customers

It can be difficult enough to nail down what your shipping expenses will be as an ecommerce company. Deciding what to charge your customers for shipping can be even more difficult. Ideally, you could just charge your customers the same shipping costs that you pay – but that poses lots of potential problems. For one, there are many variables that determine your shipping costs as an ecommerce company. There are various surcharges that may apply depending on package size and delivery location. Plus, if you outsource your order fulfillment and/or have negotiated shipping discounts, you won’t really be able to give customers an accurate shipping quote until the very end of the checkout process – which can lead to cart abandonment. More...

What to Look For in a Third-Party Fulfillment Partner

Logistics and delivery-handling directly reflects on your company – even if your company isn’t directly involved with those areas. According to a 2014 UPS “Pulse of the Online Shopper” survey, about half of consumers have abandoned carts because no delivery date was provided at checkout, or the delivery time was too long. Of that group, 27% said the lateness or overly lengthy delivery time would negatively influence their decision to shop with that retailer again.  More...

How to Keep Dimensional Weight Costs Down

In a previous blog post, we explained dimensional weight and how to calculate it. Both FedEx and UPS have announced that dimensional weight rules would apply to all shipments beginning in 2015. On top of that, shipping rates are expected to increase. If you’re not prepared, your expenses may increase when more of your shipments are subjected to the dimensional rates. In this post, we’ll go over some tips to help you lessen the blow. More...