1、Brightpearl 2021.All rights reserved.1GUIDES10 Techniques to Lower Shipping Costs and Boost ProfitBook a DemoFollow us on LinkedinFollow us on Facebook10 Techniques to Lower Shipping Costs and Boost Profit210 Techniques to Lower Shipping Costs and Boost ProfitGUIDESBrightpearl 2022.All rights reserv

2、ed.Book a DemoFollow us on LinkedinFollow us on FacebookThe challenge of surging shipping costsModern consumers expect shipping to be lightning-fast and free and its up to merchants to make it happen.The trouble is,shipping costs have skyrocketed over the last two years thanks to a shortage of wareh

3、ouse and freight capacity thats been fueled by global lockdowns and surging e-commerce demand.Many merchants are being forced to pay way over the odds to receive and deliver their goods and its having a significant impact on profit margins.With experts predicting that shipping costs will continue to

4、 rise(because shipping capacity is unable to increase at the same pace as consumer demand),retailers need fast solutions that will help them lower costs and continue to keep customers happy.2GUIDESBrightpearl 2022.All rights reserved.10 Techniques to Lower Shipping Costs and Boost ProfitBrightpearl

5、2021.All rights reserved.3GUIDES10 Techniques to Lower Shipping Costs and Boost ProfitBook a DemoFollow us on LinkedinFollow us on FacebookHere are 10 techniques to lower your e-commerce shipping costs and boost your profit 1.Reduce your package dimensionsShipping heavy items usually costs more,but

6、weight is no longer the only factor that determines shipping costs.To avoid losing out on large yet light items,carriers are increasingly taking package dimensions into account and applying a“dimen-sional weight”in shipping costs calculation.This is a theoretical weight calculated based on how much

7、volume a package will occupy.If you ship large but light items,consider splitting the items into smaller packages,which could cost you less in shipping.Also,dimensional weight calculations vary,so check with different carriers to get the best options for your items.2.Optimize your use of containersM

8、ore than 80%of global trade is done over ocean freight.According to CNN Business,container costs have soared by 600%.A year ago,companies paid about$1,920 to book a 40-foot steel container for shipping.Today,companies must pay over$14,000 for the same container.This increase has been caused by the g

9、lobal shortage of shipping containers as consumer demand has begun to surge once again.Its essential to maximize the usage of each container by ensuring products are optimized by both weight and volume.Luckily,there are tools that can make this easy.For instance,with Brightpearls Demand Planner,you

10、can scale a PO to maximize every last square inch of a container by inputting CBM(cubic metrics)or weight.Learn more here.3.Better manage your suppliersIts essential to track how well your shipping suppliers perform.How much do you pay for each shipment?Whats the lead time(factoring in supply chain

11、issues)?The answers to these questions will impact the cost effectiveness of each supplier.If a supplier is cheap,but the lead time is long,you might still lose money as you wont be able to make any sales during the replenishment time.Brightpearl will help you strike the right balance between lead t

12、ime and the shipping fees.The purpose-built Retail Operating System comes with integrated supplier management and our market-leading Demand Planner tool.It means you can easi-ly manage all your suppliers in one place,keeping track of all activity and adjusting replenishment based on each suppliers l

13、ead time.Brightpearl 2021.All rights reserved.4GUIDES10 Techniques to Lower Shipping Costs and Boost ProfitBook a DemoFollow us on LinkedinFollow us on Facebook4.Automate your pick,pack and ship processThe time your team spends on fulfilment adds invisible fees to your shipping costs.The more orders

14、 the same amount of staff can pick,pack and ship,the lower the unit shipping costs will be.Automating manual fulfilment tasks,such as order routing,order splitting,partial fulfilment,carrier selection,warehouse transfers,PO creation and invoicing will dramatically boost efficiency,lower costs,minimi

15、ze errors and free up your people for more important tasks.5.Reduce the shipping distanceThe further away the shipping destination is from your invento-ry location,the higher your shipping fees will be(and the longer it will take).Reducing shipping distance will lower costs and speed up service.Ther

16、e are a couple of ways to do this:Automatically optimize order routing.If you have multiple inventory locations,its a good idea to fulfill orders from different locations based on the destination.However,if you process lots of orders,manually assigning inventory location to each order can quickly be

17、come overwhelming.Brightpearls Automation Engine can help automatically route orders based on the rules you set to suit your needs,saving hours(and loads of hassle).Move inventory closer to customers.Check your CRM data to see where the majority of your customers are based and find inventory locatio

18、n(s)accordingly.If your customers are scattered all over the place,focus on the location of your VIP customers to choose the best locations to store inventory.6.Partner with a fulfillment centerAnother way to reduce your shipping costs is to outsource your order fulfillment process to a 3PL partner,

19、such as ShipBob.As 3PLs work with a number of retailers,they can more easily get discounted shipping and carrier rates.This option will also help you save on warehouse space and staff.However,youll have much less control over how orders are delivered to your customers,so be sure to choose a trusted

20、provider that will provide excellent service on your behalf.Youll also want to be able to integrate your 3PL provider system with your back-of-fice operating system for complete visibility and insights.TOP TIP Automate your pick,pack and ship workflows from start to finish with customized rules in B

21、rightpearls Automation Engine.See it in action here.Brightpearl 2021.All rights reserved.5GUIDES10 Techniques to Lower Shipping Costs and Boost ProfitBook a DemoFollow us on LinkedinFollow us on Facebook7.Use Amazon FBAFulfilled By Amazon(FBA)is a 3PL service offered by Amazon.With Amazons Multi-Cha

22、n-nel Fulfillment(MCF)service,you can also sell on platforms other than Amazon like Shopi-fy,BigCommerce and eBay,while still having Amazon fulfill items for you.One of the big-gest advantages of FBA is utilizing the power of Amazons shipping and logistics networks.It can be a cost-effective and eff

23、icient way to deliver a seamless shipping experience to your customers.However,it may not be profitable for low-margin items because of Amazons FBA pricing structure.Be sure to check out the FBA fulfillment fee structure before you decide whats right for you.8.Understand your true costsAny and all c

24、osts associated with shipping an order should be accounted for,including packaging,handling,freight costs when importing and exporting and the transportation itself.When you know exactly how much you pay at each step of the shipping process,you can optimize costs where possible or even pass on the f

25、ees to your customers.10.Reduce returnsReturns are inevitable but,as they are costly and can impact your reputation,they should be mini-mized.Fortunately,there are a few things you can do to reduce your return rates:Monitor the reasons customers return items.Iden-tify common issues such as supplier

26、problems,quality issues or mispicks and make improve-ments accordinglyManage your serial returners.Customers that frequently order and return cost your business extra time,effort and money,so its important to identify and manage serial returners.Boost warehouse efficiency.Regularly review your data

27、and reports to understand the volume and cause of supplier returns.Investing in a retail-tai-lored operating system with supplier management and flexible warehouse management will give you better visibility across all your returns.9.Use multiple carriersUsing multiple shipping carriers will give you

28、 negotiation power to ensure youre getting the best price and service.Itll also allow you to use the provider thats best suited to each shipment based on factors such as destination,weight and specific product requirements.Consider using shipping software like ShipStation and seamless-ly connecting

29、this to your retail operating system so you can manage all your carriers in one place.TOP TIP Brightpearls integrated retail accounting can give you an accurate view of your business and its true profitability.See how here.610 Techniques to Lower Shipping Costs and Boost ProfitGUIDESBrightpearl 2022

30、.All rights reserved.Book a DemoFollow us on LinkedinFollow us on FacebookLower shipping costs,bigger profitSkyrocketing shipping costs have heavily impacted retailers margins.The 10 techniques mentioned in this guide will help you save on shipping,even amidst the ongoing supply chain crisis.The bot

31、tom line is that to optimize shipping costs in your business,youll need better visibility across your pick,pack and ship process,from supplier management and purchasing to fulfillment and returns management.Youll also want to automate your workflows to save time,lower costs and reduce errors.6GUIDES

32、Brightpearl 2022.All rights reserved.10 Techniques to Lower Shipping Costs and Boost ProfitGUIDESBrightpearl 2022.All rights reserved.Book a DemoFollow us on LinkedinFollow us on FacebookWant to see how Brightpearl can help you Grow Fearlessly?Brightpearl is a purpose-built Retail Operating System(R

33、OS)thats designed for the Hyper-Scalable Era.Brightpearls mission is clear:streamline and automate the back office so you can save time and Grow Fearlessly.Brightpearls ROS offers inventory and sale order management,demand planning,purchasing and supplier management,financial management,CRM,fulfilme

34、nt,warehouse and logistics.Plus,connect in minutes to major e-commerce platforms and marketplaces,including Shopify,BigCommerce,Magento,Amazon and eBay.More than 3,000 businesses in 26 countries use Brightpearl and the platform powers more than$5bn of business a year.As a retail-tailored solution,the Brightpearl team consists of friendly,retail-savvy experts who are passionate about using their knowledge of retail market trends,disruptive retail tech solutions and consumer behavior shifts to help customers thrive.Book a DemoAbout Brightpearl