Blog Posts Optimize Parcel Spending for Subscription Shipments
Rising shipping costs are putting pressure on many subscription box companies. Rate increases and hefty surcharges can quickly eat into transportation budgets and erode limited margins.
In her latest blog for Multichannel Merchant, Saddle Creek Director of Fulfillment Nicole Lee identifies key factors that can impact parcel costs and offers guidance to help subscription-based companies overcome these challenges.
Following is an excerpt…
7 Strategies to Help You Reduce Subscription Box Shipping Costs
If shipping costs represent an ever-increasing portion of your order fulfillment costs, it might be time to reevaluate your approach to parcel management.
Start by establishing a clear understanding of your unique shipping needs. The following questions serve as a good starting point.
- Are your subscription orders batched and shipped at the same time every month, or are shipments spread throughout the month (anniversary model)?
- Do your fulfillment operations support daily ecommerce orders as well?
- What is your average monthly order volume?
- Do you typically experience periods of higher volume (i.e., holidays)?
- What is the average package size and weight?
- What is the point of origin for shipments?
- What is the geographic range for deliveries – local, regional or nationwide?
- What are your subscribers’ service level expectations?
- What is your average order value?
- What is your growth strategy?
Once you have a firm grasp of these variables, you can begin formulating your shipping strategy. Read the full article for seven considerations to help guide your parcel management decisions.