Blog Posts Ecommerce Drives Need to Optimize Parcel Management

On May 31, 2020, a new UPS peak surcharge went into effect for some domestic shipments, promising to significantly impact companies shipping a higher volume of ecommerce orders than usual in the wake of the coronavirus pandemic. This is just one of many factors contributing to rising parcel costs.

Understanding and Addressing Rising Parcel Costs

As more shoppers have moved online in recent months, ecommerce demand has intensified. Experts predict that shift likely will continue to grow for the foreseeable future. In fact, 43 percent of consumers plan to shop more online in the coming months, according to MyTotalRetail.

With greater ecommerce order volume on the horizon, merchants are under considerable pressure to master parcel management. It has never been more critical to understand key considerations related to parcel costs and seek out opportunities to gain control of their parcel spend.

A new whitepaper just published by Saddle Creek Logistics Services examines a variety of challenges associated with parcel shipping, including:

  • Annual General Rate Increases (ARI) of as much as 4.9 percent
  • Changes to dimensional weight rates
  • Surcharges representing 10 to 40 percent of merchants’ total parcel spend
  • Increasing expectations for fast, free shipping

The report also outlines a number of ways in which third-party logistics providers can assist merchants as they work to address these issues. Carrier management, information support, network optimization, packaging, and billing automation are just a few of the areas where 3PLs can lend their expertise.

To learn more, read the report: Parcel Shipping to Meet Ecommerce Demand.